Fangzheng Securities: Liquid cooling has become one of the important measures to alleviate the "power shortage" problem in overseas AI construction.

Fangzheng Securities research report believes that overseas "power shortage" has become an important bottleneck for the construction of AI data centers. The CEO of Microsoft stated that although the market demand for AI chips continues to rise, Microsoft is currently facing not an excess of computing power, but the power supply and physical space of data centers are close to their limits, resulting in a large number of AI chips being stuck in inventory and unable to be "powered on". Compared to traditional air cooling solutions, liquid cooling solutions have significant advantages in terms of PUE. Liquid cooling has a "throttling" effect on power consumption in data centers, not only alleviating the "power shortage" issue but also bringing better economic benefits. The research report believes that as the overseas power shortage problem becomes more significant, the penetration of liquid cooling solutions in AI servers, and even general servers, is expected to accelerate. Looking ahead to 2026, products from ASIC customers such as Google and Amazon entering mass production stage will accelerate the demand for liquid cooling industry.