3. Liquid Cooling Technology: The "Necessity Revolution" in AI Cooling

This article aims to help everyone see future trends, understand underlying logic, and think ahead. I will try to explain professional terminology in the simplest language possible. I recommend everyone read carefully. I believe those who finish reading are eager learners, and after reading, you will surely find the corresponding code.

Why has liquid cooling suddenly become the "lifeline" for AI?

You might not know: the heat generated by a single AI server now is equivalent to running 10 household air conditioners simultaneously! As NVIDIA's upcoming Rubin GPU single-card power consumption soars to 2.3kW, traditional air cooling is like using a small fan to blow on a furnace—it simply can't keep up. By 2026, liquid cooling will no longer be an "option," but a "must-have" for AI data centers—just like cars shifting from gasoline to electric, cooling systems must make a complete turn.

Today, let's discuss: why is liquid cooling technology called "AI's air conditioning system," which companies will profit immensely from this cooling revolution, and how ordinary people can seize this explosive from 0 to 1 opportunity.

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1. Why is liquid cooling a necessity? How terrifying is the "fever" of GPUs?

Imagine: if your phone gets hot after long use, an AI server is equivalent to 1,000 high-performance phones running simultaneously, with heat generation 3-5 times that of traditional servers. If cooling can't keep up, chip temperature exceeding 85℃ will cause automatic downclocking—like a person with a fever of 40℃ unable to work normally, leading to a direct cut in computing power.

More critically, air cooling has reached physical limits. Traditional air cooling uses fans, and its efficiency is limited by air density—like blowing on a hotpot with a fan, it gets hotter the more you blow. Liquid cooling directly contacts the heat-generating components with liquid, with cooling efficiency over 1000 times that of air cooling—like soaking the heat source in ice water, with immediate cooling effects.

2. Two major technical routes: Cold Plate vs. Immersion, who will dominate?

Liquid cooling has two "bathing" methods, each with advantages and disadvantages:

1. Cold Plate: Gentle "Close-Fitting Cooling"

Principle: Attach a metal plate (cold plate) on core components like CPU and GPU, and let the liquid flow through to carry away heat—like applying an ice pack to a feverish person. Advantages: low retrofit cost, can be used with existing servers with minor modifications, suitable for upgrading existing data centers. Market: by 2026, will account for over 60% share, currently the mainstream.

2. Immersion: Complete "Full-Body Soaking"

Principle: Submerge the entire server motherboard in insulating cooling liquid, which directly absorbs all heat—like soaking the whole person in an ice water pool. Advantages: best cooling effect, PUE (Power Usage Effectiveness) can be below 1.1 (compared to about 1.5 for air cooling), saving over 30% energy. Challenges: high retrofit cost, requires redesigning servers, suitable for new supercomputing centers.

3. Market Scale: A super trend expected to grow tenfold in 3 years

Can you believe it? China's liquid cooling server market was only 5 billion yuan in 2025, but by 2026, it is expected to surge to 20 billion yuan, and by 2027, reach 50 billion! This is not a fantasy but an inevitable result of explosive AI computing power:

- Demand side: one AI server needs 6-8 cold plates, valued at 20,000-30,000 yuan; a liquid cooling system for a cabinet is worth 400,000-500,000 yuan, ten times that of air cooling.

- Policy side: the government requires new data centers to have a PUE below 1.3, which air cooling cannot achieve; liquid cooling becomes the only option.

4. Which companies will benefit from this revolution?

The liquid cooling industry chain is divided into three parts: cooling liquid, cold plates/pipes, and system integration. Let's look at each:

1. Cooling Liquid: The "Black Technology" of liquids

This is the core material of liquid cooling, requiring insulation, high thermal conductivity, and non-corrosiveness—extremely high technical barriers.

2. Cold Plates and Pipes: "Copper" in the spotlight

Cold plates mainly use copper and stainless steel, with machining precision requirements 10 times higher than traditional heat sinks.

3. System Integration: The most profitable "General Contractor"

Liquid cooling is not just about selling equipment; it also involves design, installation, and maintenance. System integrators hold the key to the market.

5. Investment tips for beginners

1. Understanding "Customer List" is crucial

The liquid cooling industry has high barriers to entry. Companies that can supply to NVIDIA, Huawei, and other giants are basically "set for success."

2. Prioritize "System Integrators"

Companies that only sell cooling liquids or cold plates have gross margins of about 30%-40%; those doing system integration, offering complete solutions, can achieve gross margins over 50%.

Many small companies claim to develop liquid cooling, but few can mass produce. For example, developing cooling liquids takes 3-5 years, and small factories lack the technical reserves. Prioritize companies with existing orders and capacity to avoid pitfalls.

6. Where is the next opportunity?

Liquid cooling is just the beginning of the AI cooling revolution. Even more significant is immersion cooling liquids. By 2026, immersion market penetration will rise from 5% to 15%, and by 2030, potentially reach 40%. This is like the leap from 4G to 5G—whoever masters immersion technology will hold the initiative for the next decade.

Summary: Why is liquid cooling a "window of opportunity" for ordinary people?

The liquid cooling industry from 0 to 1 has high technical barriers and favorable competition patterns, with leading companies receiving abundant orders. More importantly, this is not just hype but a rigid demand driven by explosive AI computing power. 2026 will be the year of liquid cooling, just like 2020 was for new energy vehicles—early entry means sharing tenfold dividends.

Remember: investing is not about chasing trends but understanding the direction. Liquid cooling technology is one of the clearest trends in 2026.

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