AI Computing Power Drives Data Center Cooling Demand Explosion, Listed Companies Intensify Liquid Cooling Track Deployment

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The exponential growth in AI computing power demand is driving a surge in cooling needs, making liquid cooling a hot sector in thermal management. On March 18, A-share liquid cooling concept stocks performed actively, with several hitting the daily limit. Investors are highly focused on the deployment of related listed companies.

In this context, the Securities Daily reporter noted that the domestic liquid cooling industry is showing dual characteristics of accelerated mergers and acquisitions and hot fundraising through private placements.

Industry forecasts suggest that as computing power continues to expand and data center construction accelerates, liquid cooling technology has shifted from an “optional configuration” to a “standard feature,” and the market is about to enter an unprecedented opportunity period. Ding Zhenyu, senior investment advisor at Jufeng Investment, told Securities Daily that the outlook for the liquid cooling sector is very certain, belonging to a high-growth, high-certainty direction. “Currently, the market has already passed the early introduction phase and is at the starting point of large-scale explosion. Leading clients are beginning to implement projects in batches, and orders and performance will gradually materialize. The next two to three years will be a phase of rapid growth.”

Listed Companies Increasing Their Investment

This year, listed companies are intensifying their deployment in the liquid cooling sector through mergers, acquisitions, or private placements. A review of relevant announcements shows that domestic listed companies mainly use private placements as a core tool, increasing investments in capacity building, technological R&D, and thermal management of computing infrastructure. Since early 2026, multiple private placement projects have been approved by securities exchanges.

On March 5, Yimikang Technology Group Co., Ltd. received approval for its private placement from the Shenzhen Stock Exchange. The proposed fundraising does not exceed 311 million yuan, which will be fully invested in projects related to thermal management products for computing infrastructure, R&D testing platforms for thermal management products, and some working capital.

Many other listed companies have also announced private placement plans to seize market opportunities. On January 16, Shenzhen Chengtian Weiye Technology Co., Ltd. disclosed a private placement plan, aiming to raise no more than 800 million yuan for projects including liquid cooling heat dissipation system commercialization, R&D centers, group information systems, semiconductor packaging material expansion, and working capital.

On January 29, Sanhe Tongfei Refrigeration Co., Ltd. announced a private placement plan, intending to raise up to 1.2 billion yuan to focus on liquid cooling temperature control projects and working capital, aiming to expand capacity, improve business layout, and meet the rapidly growing market demand.

While private placements are booming, companies are also actively entering the liquid cooling sector through mergers and acquisitions. On the evening of March 13, Jinfu Technology Co., Ltd. announced it would acquire 51% stakes in Foshan Zhuohui Metal Products Co., Ltd. and Foshan Lianyi Thermal Energy Technology Co., Ltd. for a total consideration of 571.2 million yuan. After the transactions, both targets will be consolidated into the company’s financial statements. This move aims to tap into the high-growth liquid cooling market and develop a second growth curve for the company.

Liquid Cooling Sector Enters Explosive Growth Phase

Ding Zhenyu stated that this year, many listed companies are densely deploying in the liquid cooling sector through mergers and private placements, driven mainly by the heat dissipation needs brought by AI computing power explosions.

Currently, the industry mainly adopts cold plate and immersion technologies, suitable for AI servers, intelligent computing centers, energy storage, and new energy vehicles. Ding further explained that traditional air cooling can no longer support high-power processors and high-density cabinets. Coupled with tightening policies on data center PUE (Power Usage Effectiveness), liquid cooling has shifted from an “optional” to a “necessary” solution, instantly opening up industry space. Companies are competing for market share, orders, and valuation.

According to a recent report by China Business Industry Research Institute, by 2026, China’s liquid cooling server market will reach 25.7 billion yuan, with penetration rising from 20% in 2025 to 37%. Industry insiders believe that in this global race for computing power cooling, companies with technological barriers and order advantages will seize market leadership early and play a dominant role in reshaping industry patterns.

“For listed companies deploying in liquid cooling, those that can truly succeed and have long-term competitiveness are not just riding the trend but focusing on three key points: whether they have core technology and R&D capabilities, whether they can secure ongoing orders by partnering with top computing power manufacturers, and whether they have scalable delivery and cost control abilities,” Ding Zhenyu emphasized. Only if all three are in place can companies benefit from the industry’s rapid expansion, rather than being a fleeting phenomenon.

Zhang Xiaorong, director of the Deep Technology Research Institute, told reporters that the liquid cooling market is at a critical turning point from an introduction phase to a large-scale explosion. “Currently dominated by cold plate technology, the future will evolve toward high efficiency and intelligent systems.” He added that industry competition is shifting from single components to system-level integration, and companies with full-stack technical capabilities will lead the market.