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

Staff Reporter Feng Yuyao

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

Against this backdrop, Securities Daily reporter has noticed that the domestic liquid cooling industry is showing dual characteristics of accelerated mergers and acquisitions, as well as hot fundraising through private placements by listed companies.

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

Listed Companies Increasing Investment

This year, listed companies are ramping up 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 investment in liquid cooling capacity construction, 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 a private placement from the Shenzhen Stock Exchange. The proposed fundraising will not exceed 311 million yuan, with all proceeds allocated to projects for thermal management products for computing infrastructure, R&D testing platforms for thermal management products, and some working capital.

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

On January 29, Sanhe Tongfei Refrigeration Co., Ltd. announced a plan to issue shares to specific targets, aiming to raise up to 1.2 billion yuan. The funds will focus on liquid cooling temperature control projects and working capital, to further expand capacity and improve business layout, responding to the rapid growth of the liquid cooling industry.

While private placements are booming, listed companies are also actively entering the liquid cooling sector through mergers and acquisitions. On the evening of March 13, Jinfu Technology Co., Ltd. announced that 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 transaction, both targets will be consolidated into the company’s financial statements. This move aims to tap into the high-growth liquid cooling heat dissipation sector and establish 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 the explosive growth of AI computing power.

Currently, the industry mainly adopts cold plate and immersion technologies, suitable for AI servers, intelligent computing centers, energy storage, new energy vehicles, and other scenarios. 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” choice. The industry space has been instantly opened, and companies are competing for market positioning, orders, and valuation.

According to a recent report by China Business Industry Research Institute, the market size of China’s liquid cooling servers will reach 25.7 billion yuan by 2026, 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 the market early and dominate the industry landscape.

“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 points: whether they have core technology and self-developed capabilities, whether they can secure continuous orders by partnering with leading computing power manufacturers, and whether they have scalable delivery and cost control abilities,” Ding emphasized. “Only if these three points are solid can companies benefit from the rapid industry expansion, rather than fading away quickly.”

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 intelligentization.” 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.