Northeast: The Era of High-Power Heat Dissipation Begins, Immersion Liquid Cooling Medium Cultivates New Opportunities

Northeast has released a research report stating that liquid cooling media are the core materials for heat transfer in liquid cooling systems and are expected to benefit directly from the rapid expansion of the industry. Cold plate liquid cooling still dominates the market, while immersion cooling is expected to accelerate in application alongside the growing demand for high-power computing. Fluorinated liquids are crucial media for immersion cooling, and the restructuring of the global supply landscape presents development opportunities for domestic companies. With advantages in cost, safety, and environmental protection, silicon-based coolants are expected to become an important route for immersion cooling. The main points from Northeast are as follows: The global demand for AI computing power is growing rapidly, and liquid cooling is shifting from an optional solution to a rigid requirement for high-power computing facilities. According to data from the China Academy of Information and Communications Technology, by the end of 2024, the global general computing power scale will reach 628 EFLOPS, up 14.0% year-on-year; intelligent computing power will reach 5,693 EFLOPS, up 64.7% year-on-year. As chip power consumption and cabinet power density continue to rise, traditional air cooling is gradually approaching its thermal dissipation limit. Liquid cooling can effectively improve cooling efficiency and reduce refrigeration energy consumption, helping data centers lower their PUE to below 1.25. According to UBS data, the global direct liquid cooling market for data centers is expected to grow from $1.14 billion in 2024 to $31.19 billion in 2030, with a CAGR of approximately 73.6%. The liquid cooling media serve as the core materials for heat transfer in liquid cooling systems and are expected to directly benefit from the rapid expansion of the industry. The technological pathways for liquid cooling are evolving rapidly, with the demand for high power density driving the accelerated penetration of immersion cooling. Currently, cold plate liquid cooling still occupies the mainstream market due to its high technological maturity and lower difficulty in retrofitting existing facilities. However, immersion cooling, which has shorter heat transfer paths and higher cooling efficiency, is expected to see accelerated application growth alongside increasing demand for high power computing. It is estimated that from 2024 to 2029, China's immersion cooling server market scale will increase from $12 million to $323 million, with a CAGR of approximately 93%. In terms of cooling media, the market has primarily formed three main systems: water-based, oil-based, and fluorinated liquids. Among these, water-based coolants are mainly used in cold plate liquid cooling; oil-based coolants, known for their cost-effectiveness, insulation, and stability, are predominantly applied in single-phase immersion cooling; fluorinated liquids possess excellent insulation properties, thermal stability, and phase change heat transfer capacity, indicating significant application potential in both single-phase and two-phase immersion cooling. Fluorinated liquids are an important medium for immersion cooling, and the restructuring of the global supply landscape presents development opportunities for domestic companies. The global high-end electronic fluorinated liquid market has long been dominated by European and American companies such as 3M and Solvay. 3M plans to exit the PFAS-related products business completely by the end of 2025; previously, its PFAS products generated approximately $1.3 billion in annual revenue, with fluorinated liquids being a significant component. As a result, the global fluorinated liquid supply landscape is being accelerated to restructure, with about 80% of the global semiconductor cooling liquid market facing vendor switches, providing an important window for domestic companies to enter the overseas supply chain. In terms of segmented varieties, hydrofluoroethers, perfluoropolyethers, and perfluoroolefins represent the main technological pathways for fluorinated liquids currently. Among them, hydrofluoroether technology is relatively mature and has been applied first in the electronic cooling field; however, its application space in high-performance immersion cooling is limited due to dielectric performance restrictions. Perfluoropolyethers offer excellent comprehensive performance and are an important option for high-reliability immersion cooling, but their higher costs and global warming potential limit their scale application; perfluoroolefins possess good insulation properties and potential for scalable production, with cost advantages gradually becoming apparent, making them an important development direction for immersion cooling in data centers. Oil-based coolants are critical media for single-phase immersion cooling, and silicon-based coolants strike a good balance between performance and cost. Oil-based coolants primarily include mineral oils, synthetic oils, and silicon-based coolants. Among them, silicon-based coolants have characteristics such as high insulation, high flashpoint, low volatility, and the absence of PFAS, making them more cost-effective compared to fluorinated liquids. In terms of industrialization, Dow has launched the ICL series products; Ningbo Runhe High-Tech Materials has developed a trinity solution of modified silicone oil coolant, thermal interface materials, and instant protection materials; Zhejiang Xinan Chemical Industrial Group has achieved commercial applications, with relevant projects achieving a single cabinet power density of 210 kW and a system PUE as low as 1.1. With advantages in cost, safety, and environmental protection, silicon-based coolants are expected to become an important route for immersion cooling. Risk Warning: The penetration rate of liquid cooling may fall short of expectations, and risks of intensified market competition may arise.