Key Moments
- Alphabet’s Google has been in talks with Envicool (SZ:002837) and other Chinese companies to source liquid cooling systems for data centers, according to a Reuters report.
- A procurement team from Google’s Taiwan operations recently visited China amid a tight global supply of AI-related cooling components, Reuters reported.
- JPMorgan estimates, as cited by Reuters, suggest the global AI server liquid cooling market could surpass $17 billion in 2026.
Google Targets Liquid Cooling Capacity in China
Alphabet’s (NASDAQ:GOOGL) Google has engaged in discussions with several Chinese manufacturers, including Envicool (SZ:002837), to acquire liquid cooling technology for its data centers, Reuters reported on Tuesday, citing people familiar with the matter.
The outreach to Chinese suppliers is focused on securing liquid cooling equipment that supports data center operations linked to artificial intelligence workloads, according to the Reuters account.
Procurement Visit Highlights Supply Constraints
Reuters reported that the talks followed a recent trip to China by a procurement delegation from Google’s Taiwan operations. The visit was described as taking place against the backdrop of a constrained global market for cooling components used in AI infrastructure.
The report noted that Google’s team held a meeting with Envicool and is planning discussions with at least one additional supplier.
AI Data Centers Drive Shift to Liquid Cooling
Liquid cooling systems circulate specialized fluids around computing equipment, providing more efficient heat removal than traditional air-based systems. According to the Reuters report, such systems have become critical for AI-focused data centers, where higher-density computing tasks produce more heat than conventional cooling approaches can handle.
The surge in AI data center development is placing new pressure on supply chains, extending beyond the availability of high-end semiconductors to include supporting infrastructure such as advanced cooling, Reuters reported.
Market Outlook for Liquid Cooling Systems
JPMorgan projections cited by Reuters point to substantial growth for the AI liquid cooling segment. The estimates indicate that the global market for AI server liquid cooling systems could exceed $17 billion in 2026, underlining a strong demand outlook for suppliers active in this niche.
| Item | Detail |
|---|---|
| Key buyer | Alphabet’s Google (NASDAQ:GOOGL) |
| China-based supplier mentioned | Envicool (SZ:002837) |
| Equipment type | Liquid cooling systems for data centers |
| Market projection | AI server liquid cooling market could exceed $17 billion in 2026 (JPMorgan estimate cited by Reuters) |
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