Orient Securities: AI server demand drives vast space for submerged coolant
The Zhitong Finance App learned that Orient Securities released a research report saying that the coolant for the core consumables of immersion liquid cooling is also divided into two mainstream routes: fluorine and silicon. Fluorinated liquid has excellent performance. Currently, it is in the dominant position of immersion coolant. The cost advantage of silicon coolants is outstanding, and application scenarios and market space are gradually expanding. The global market space for liquid cooling is vast. As AI servers expand and requirements for refrigeration performance increase, the penetration rate of immersive liquid cooling will continue to increase. Supply-side overseas 3M will gradually withdraw from the market, and domestic companies will usher in a period of accelerated replacement, and they are optimistic about companies with immersion coolant-related product layouts.
Orient Securities's main views are as follows:
AI computing power is rising and PUE restrictions are getting stricter, and liquid cooling has become a must for high-density computing power scenarios
As the computing power of AI chips with GPUs as the core continues to break through, the thermal design power consumption of data center chips is rising sharply at the same time. In addition, countries limit the efficiency of electricity usage in large data centers to less than 1.3, making cooling consumption reduction the key. With its high heat conductivity, high heat transfer characteristics and excellent power usage efficiency, liquid cooling technology is showing economy. It is rapidly replacing traditional air cooling and has become the core technology choice for AI computing power clusters. Liquid cooling is divided into two technical routes: cold plate type and immersion type. Currently, cold plate type is the mainstream. The immersion type has outstanding growth potential due to its extremely high heat dissipation efficiency, no hot spots, and adapting to ultra-high density computing power. Immersion liquid cooling core consumables coolants are also divided into two mainstream routes: fluorine and silicon. Fluorinated liquid has excellent performance. Currently, it is in the dominant position of immersion coolant. The cost advantage of silicon coolants is outstanding, and application scenarios and market space are gradually expanding.
Demand side: The expansion of AI servers is expected to drive an increase in coolant demand. The global market space related to liquid cooling is broad
According to Polaris Market Research, the global data center liquid cooling market will reach US$2,887 billion in 2025. The market volume is expected to increase to US$36.589 billion in 2034, and the CAGR will reach 32.6% in 2025-2034. Immersion liquid cooling has outstanding potential, and there is plenty of room for coolant growth. According to Hengzhou Chengsi, the global electronic fluoride market is about 10.56 billion yuan in 2025, and is expected to reach 15.92 billion yuan by 2032, with a compound annual growth rate of 6.1% from 2026-2032. According to QYResearch, the global silicone coolant market size is about US$63 million in 2024, and is expected to reach US$110 million in 2031, with an average compound growth rate of 6.8% in 2025-2031.
Supply side: international giants withdraw to free up market space, domestic companies accelerate layout
The global electronic fluoride market has long been occupied by European and American companies such as 3M and Solvay, but 3M has announced that it will completely withdraw from the PFAS product line by the end of 2025, freeing up more market space and opening a window for domestic replacement. As AI server expansion drives growth in coolant demand and core supplier 3M gradually withdraws from the coolant market, domestic immersion coolant market space is expected to open up, and domestic companies will speed up the layout of the liquid cooling industry. Among them, fluorine-based coolants represent companies such as Juhua Co., Ltd., Xinzhoubang, and Yonghe Co., Ltd., which are accelerating the implementation of production capacity and forming an ecosystem. Dongyangyang has opened a closed loop in the “material-equipment-operation” liquid cooling computing power industry chain through investment and mergers and acquisitions; Jinshi Resources strategically took a stake in Zhejiang Noah and entered the fine fluorine chemical circuit. The domestic coolant industry ushered in a period of full acceleration of development. Among silicon-based coolants, Runhe Materials achieved differentiated competitive breakthroughs with modified silicone oil solutions; Xinan Co., Ltd. relied on the entire silicone industry chain and entered the silicon coolant circuit. Bohui Co., Ltd., the representative company of hydrocarbon coolants, is deeply involved in hydrocarbon coolants and has set up a wholly-owned subsidiary to focus on liquid cooling business.
Risk warning:
Liquid cooling penetration rate falls short of expectations, global environmental protection policies are becoming stricter, industry overcapacity risks, raw material costs fluctuate, and coolant production capacity release falls short of expectations.