Global Liquid-Cooled Cabinet Market Surges Amid AI-Driven Demand and Sustainability Goals
14-03-2025
The global liquid-cooled cabinet market is experiencing exponential growth, fueled by the rising demand for high-performance computing (HPC) and data centers under pressure to meet energy efficiency targets. According to recent reports, the market is projected to expand at a compound annual growth rate (CAGR) of 59% in China alone between 2023 and 2027, with the segment exceeding RMB 100 billion by 2027. This surge is driven by two primary factors: the escalating power density of AI servers, which necessitates advanced cooling solutions, and the global push toward "green computing" under carbon-neutrality policies.
Technological Breakthroughs: Cold Plate Dominance and Immersion Potential
Cold plate liquid cooling currently dominates the market due to its cost-effectiveness and compatibility with existing infrastructure. This method, which indirectly transfers heat from server components via a coolant, achieves a Power Usage Effectiveness (PUE) ratio below 1.25, aligning with stringent energy efficiency regulations. However, its limitations in cooling entire systems have spurred interest in immersion cooling, where servers are fully submerged in non-conductive fluids. This technology promises superior PUE performance (as low as 1.04 in pilot projects) and is gaining traction in hyperscale data centers and AI training clusters, despite higher upfront costs and maintenance complexities.
Cold plate liquid cooling currently dominates the market due to its cost-effectiveness and compatibility with existing infrastructure. This method, which indirectly transfers heat from server components via a coolant, achieves a Power Usage Effectiveness (PUE) ratio below 1.25, aligning with stringent energy efficiency regulations. However, its limitations in cooling entire systems have spurred interest in immersion cooling, where servers are fully submerged in non-conductive fluids. This technology promises superior PUE performance (as low as 1.04 in pilot projects) and is gaining traction in hyperscale data centers and AI training clusters, despite higher upfront costs and maintenance complexities.
Industry Players and Regional Dynamics
Leading Chinese firms such as Inspur, Sugon, and Envicool are driving innovation, with Envicool’s Coolinside liquid-cooled cabinets and Sugon’s immersion solutions already deployed in major projects. Taiwan-based companies like Foxconn and Tyan are also making strides through partnerships with global tech giants, particularly in GPU cooling for AI applications. Meanwhile, companies like Sunling Environment and Conson Group are expanding production capacities to meet surging demand, with Sunling’s new data center manufacturing base set to roll out high-power liquid-cooled cabinets.
Leading Chinese firms such as Inspur, Sugon, and Envicool are driving innovation, with Envicool’s Coolinside liquid-cooled cabinets and Sugon’s immersion solutions already deployed in major projects. Taiwan-based companies like Foxconn and Tyan are also making strides through partnerships with global tech giants, particularly in GPU cooling for AI applications. Meanwhile, companies like Sunling Environment and Conson Group are expanding production capacities to meet surging demand, with Sunling’s new data center manufacturing base set to roll out high-power liquid-cooled cabinets.
Challenges and Future Outlook
While the market is poised for growth, hurdles remain. High costs of immersion cooling fluids, lack of standardized industry protocols, and technical complexities in retrofitting legacy systems are slowing adoption. However, falling coolant prices and advancements in phase-change technologies are expected to make immersion cooling more viable in the long term. As AI and cloud computing continue to reshape the digital landscape, liquid-cooled cabinets are increasingly viewed as a cornerstone of sustainable, high-density computing infrastructure.
While the market is poised for growth, hurdles remain. High costs of immersion cooling fluids, lack of standardized industry protocols, and technical complexities in retrofitting legacy systems are slowing adoption. However, falling coolant prices and advancements in phase-change technologies are expected to make immersion cooling more viable in the long term. As AI and cloud computing continue to reshape the digital landscape, liquid-cooled cabinets are increasingly viewed as a cornerstone of sustainable, high-density computing infrastructure.
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