The coolants receiving attention in the field of immersion Coolant mainly include hydrocarbons, Silicone Type, and fluorocarbons. Currently, fluorocarbons are the most important product segment, accounting for about 94.2%.

The Zhitong Finance App learned that Zhishang Securities released a Research Reports saying that according to the Precedence Research market forecast, the global artificial intelligence market is expected to achieve a compound growth rate of more than 35% from 2023 to 2030. While global AI demand is growing rapidly, the cabinet power density of intelligent computing centers is rising at a rate far exceeding Moore’s Law, which places higher demands on computer room cooling technology. As one of the first coolants to be used in fluorinated liquids, perfluoropolyether (PFPE) immersion coolants are expected to become mainstream products in the fluorinated coolant market in the future due to their good chemical stability, good thermal stability, high thermal conductivity, high dielectric strength, and no corrosion.

The main views of Zheshang Securities are as follows:

Investment in AI computing power is growing rapidly, and liquid cooling technology is expected to usher in explosive growth

According to the Precedence Research market forecast, the global artificial intelligence market is expected to achieve a compound growth rate of more than 35% from 2023 to 2030. While global AI demand is growing rapidly, the cabinet power density of intelligent computing centers is rising at a rate far exceeding Moore’s Law, which places higher demands on computer room refrigeration technology. Traditional air cooling systems are affected by factors such as data center floor area and unit operating cost, and the maximum cooling limit is generally 20 kW/cabinet, making it increasingly unsustainable. Liquid cooling technology uses liquid to replace air as the cooling medium, and directly or indirectly contacts the heating device, which can greatly improve heat dissipation efficiency and effectively meet the high cooling requirements of single points, entire cabinets, and computer rooms.

Liquid cooling can greatly reduce data center energy consumption and save investment and operating costs in power supply system construction

Liquid cooling technology refers to a cooling method that uses liquid instead of air as a cooling medium to exchange heat with server heating components to take away the heat generated by server components to ensure that the server works within a safe temperature range. The “Green Liquid Cooling Data Center White Paper” shows that using cold plate liquid cooling can reduce PUE to 1.15-1.25, while phase change immersion liquid cooling can achieve ultra-low energy consumption of 1.1 or less. Under the same external capacity conditions, the liquid cooling method allows more IT equipment to be configured, which can maximize energy utilization; on the premise that the load power of IT equipment is determined, the total power supply capacity requirement is drastically reduced, which can effectively save investment and operating costs in power supply system construction. Taking a 10 MW data center as an example, for every 0.1 reduction in PUE, annual electricity savings can reach 8.76 million kWh, which is equivalent to a reduction of 8,730 tons of carbon dioxide emissions.

The penetration rate of immersion liquid cooling has increased, and the demand for fluorinated liquid is expected to increase dramatically

According to future think tank predictions, the future development of liquid cooling technology routes may show three types of differentiation: the mainstream of cold plate liquid cooling, breakthroughs in immersion liquid cooling, and the transition plan for hybrid refrigeration. According to QY Research, the global data center immersion coolant market is expected to reach 0.97 billion US dollars in 2030, with a CAGR compound annual growth rate of 21.2% over the next few years. The coolants receiving attention in the field of immersion Coolant mainly include hydrocarbons, Silicone Type, and fluorocarbons. Currently, fluorocarbons are the most important product segment, accounting for about 94.2%. As one of the first coolants to be used in fluorinated liquids, perfluoropolyether (PFPE) immersion coolants are expected to become mainstream products in the fluorinated coolant market in the future due to their good chemical stability, good thermal stability, high thermal conductivity, high dielectric strength, and no corrosion.

It is recommended to focus on the symbol

Xinzhoubang (300037.SZ): The company is a global leader in perfluoropolyether. It uses HEXAFLUO BoreAFTM immersion phase change liquid cooling technology to develop a series of different products, and can be customized according to customer requirements. The immersion cooling aspect has now been delivered to some leading customer tests.

Juhua Co., Ltd. (600160.SH): As a domestic fluorine chemical leader, the company actively lays out liquid cooling-related fields. Its subsidiary Fluorine Hi-Tech plans 5,000 tons/year of Juxin coolant production capacity. The products cover perfluoropolyether and other series. The first phase of 1000 tons/year was completed in 2022 and is continuing to promote commercial application. At the same time, the company has an R134a production quota of about 0.0765 million tons. R134a is expected to be widely used in two-phase cold plate liquid cooling due to its safety and low cost.

Risk Alerts

The development of intelligent computing centers falls short of expectations, the development of AI applications falls short of expectations, market competition intensifies risks, and customer development falls short of expectations.