“`html
Key Points
- The liquid cooling sector is experiencing explosive growth, driven by the increasing heat generated by AI and high-density computing, making traditional air cooling obsolete.
- Major tech giants like Nvidia (Yingweida 英伟达) and AMD are adopting liquid cooling for their high-performance hardware, signaling a shift to a new industry standard.
- The Chinese liquid-cooled server market reached ¥17.16 billion RMB ($2.37 billion USD) in 2024, a 67.0% increase from 2023, and is projected to reach ¥117.3 billion RMB ($16.2 billion USD) by 2029 with a 46.8% CAGR.
- Liquid cooling is significantly more efficient than air, with water having 4,000 times the heat capacity and 25 times the thermal conductivity of air.
- Companies in the liquid cooling space are seeing substantial profit increases, with Feirongda (Feirongda 飞荣达) reporting a projected year-on-year increase of 103.95% – 123.69% in net profit for 2025.
The liquid cooling sector is experiencing explosive growth, and if you’re an investor, founder, or tech enthusiast, this is a trend you need to watch.
As AI and high-density computing push our hardware to the absolute limit, one major problem is getting worse: heat.
Traditional air cooling just can’t keep up anymore.
Enter liquid cooling—the core solution for high-density heat dissipation that’s quickly becoming non-negotiable.
The market is responding in a big way. Since August 2025, the Wind Liquid-Cooled Server Concept Index has already jumped a massive 13.64%.
Analysts are clear: with GPU giants overseas demanding more liquid cooling solutions, the entire industry is set for a massive expansion.
Tech Giants are All-In on Liquid Cooling
The biggest names in tech are fueling this shift, accelerating the adoption of liquid cooling technology.
Companies like Nvidia (Yingweida 英伟达), Microsoft (Weiruan 微软), Google, and Meta are pouring investment into AI, and that means they need better cooling.
- Nvidia’s GB200 System: Recently delivered, this beast integrates 72 Blackwell Ultra GPUs and 36 Grace CPUs, and guess what? It’s all liquid-cooled.
- AMD’s Instinct MI350 Series: Unveiled at the 2025 Global AI Development Conference, the high-performance MI355X model boasts a peak power consumption of 1400W and, you guessed it, uses a liquid cooling design.
When the leaders of the AI hardware revolution adopt a technology, it’s not a trend—it’s the new standard.
Resume Captain
Your AI Career Toolkit:
- AI Resume Optimization
- Custom Cover Letters
- LinkedIn Profile Boost
- Interview Question Prep
- Salary Negotiation Agent
The Market is Exploding: By the Numbers
The data paints an even clearer picture. According to IDC’s “China Semi-Annual Liquid-Cooled Server Market” report, the growth is staggering.
In 2024, the Chinese liquid-cooled server market hit ¥17.16 billion RMB ($2.37 billion USD).
That’s a 67.0% increase compared to 2023.
And it’s just getting started.
IDC predicts the market will grow at a compound annual growth rate (CAGR) of 46.8% between 2024 and 2029.
By 2029, China’s liquid-cooled server market is projected to reach an incredible ¥117.3 billion RMB ($16.2 billion USD).
Xin Yi, a Research Manager at IDC, notes that the huge demand for AI computing power is forcing cooling tech to evolve into modular, intelligent, and flexible heat dissipation systems.
The Mid-Year Report Card: Liquid Cooling Stocks are Soaring
This market boom is translating directly into massive gains for companies in the space.
Just look at their 2025 semi-annual performance forecasts:
- Feirongda (Feirongda 飞荣达): Expecting a net profit of ¥155 million – ¥170 million RMB ($21 million – $23.5 million USD). That’s a mind-blowing year-on-year increase of 103.95% – 123.69%. The company credits its AI server heat dissipation business and key client partnerships for the huge revenue growth.
- Zhisheng Tech (Zhongshi Keji 中石科技): Projecting a net profit of ¥116 million – ¥129 million RMB ($16 million – $17.8 million USD), an increase of 85.01% – 105.75% from last year. They’re seeing surging demand for thermal materials thanks to AI and new consumer electronics.
- Huazheng New Material (Huazheng Xincai 华正新材): Forecasting a net profit of ¥37 million – ¥47 million RMB ($5.1 million – $6.5 million USD). This represents a growth of 271.02% – 371.30%.
The research team at China International Capital Corporation (Zhongjin Gongsi 中金公司) agrees, stating that with overseas spending on computing power on the rise, the AI Data Center (AIDC) liquid cooling sector is primed for major investment opportunities.
Find Top Talent on China's Leading Networks
- Post Across China's Job Sites from $299 / role, or
- Hire Our Recruiting Pros from $799 / role
- Qualified Candidate Bundles
- Lower Hiring Costs by 80%+
- Expert Team Since 2014
Your First Job Post
A Quick Primer: The “How” Behind the Heat
So, what exactly is liquid cooling? It’s not as complex as it sounds.
Zhou Junzhi, Chief Macro Analyst at China Securities (Zhongxin JianTou Zhengquan 中信建投证券), breaks it down into three main types:
- Spray-type Liquid Cooling
- Cold Plate Liquid Cooling (currently the most mature and widely used)
- Immersion Liquid Cooling
The science is simple but powerful.
As Zhou explains, “Water has 4,000 times the heat capacity and 25 times the thermal conductivity of air.”
This means liquid can absorb and transfer heat far more efficiently than the fans we’re used to, which is critical for today’s power-hungry chips.
- Heat Capacity (vs. Air): Water is 4,000 times more efficient
- Thermal Conductivity (vs. Air): Water is 25 times more efficient
ExpatInvest China
Grow Your RMB in China:
- Invest Your RMB Locally
- Buy & Sell Online in CN¥
- No Lock-In Periods
- English Service & Data
- Start with Only ¥1,000
The Investor’s Take: New Opportunities on the Horizon
Analysts across the board see 2025 as a pivotal year.
Yan Guicheng at China Securities (Zhongxin JianTou Zhengquan 中信建投证券) calls it a year of “significant increase” in the penetration rate for Nvidia’s liquid-cooled chips, which will drive market growth.
Yao Yao from Guojin Securities (Guojin Zhengquan 国金证券) believes domestic Chinese liquid cooling companies have a real shot at reshaping the global industry and increasing their market share.
Here’s the playbook for investors:
- Focus on Components: Look at component manufacturers who are benefiting from the localization of overseas supply chains.
- Watch Temperature Control: Keep an eye on temperature control solution providers who are winning as both domestic and international giants increase their spending.
- Bet on the Tech: Zhao Liangbi at China Galaxy Securities (Zhongguo Yinhe Zhengquan 中国银河证券) suggests focusing on manufacturers with mature cold plate liquid cooling technology while also tracking those developing the next wave of immersion and spray-type solutions.
The bottom line is clear: as demand for AI computing power continues to soar, the need for advanced thermal management will only intensify. The industrial innovation is here, and for those paying attention, the liquid cooling sector represents a ground-floor investment opportunity in the future of technology.
References
“`
![China's STAR Market Semiconductor Equipment Boom: AI Demand Fuels Q1 Growth & R&D Spikes [FreshFromChina]](https://freshfromchina.com/wp-content/uploads/2025/05/Chinas-STAR-Market-Semiconductor-Equipment-Boom-AI-Demand-Fuels-Q1-Growth-RD-Spikes-___FreshFromChina-150x150.png)
