China Liquid Cooling: AI and Carbon Neutrality Wave
Key Points
- Large language model (LLM) training and generative AI driving demand for advanced cooling technology
- Liquid cooling solutions gaining penetration due to advantages: low energy consumption, high cooling efficiency
- Long-term carbon neutrality trend supporting demand in new energy segment
- Liquid cooling becoming insufficient for state-of-art AI datacenters using high-power-density compute
- Current mainstream datacenter cooling relies on air-cooling, which is inadequate for modern AI workloads
Market Dynamics
- AI acceleration forcing datacenter evolution toward higher rack density and better energy/power efficiency
- Cooling solutions spectrum includes air cooling, water cooling, liquid cooling with liquid being optimal for AI
- Nomura identifies Envicool as pure-play turnkey cooling solution provider and key AI beneficiary
- Market benefiting from both AI compute demand and environmental sustainability mandates
Source
- File:
China Liquid Cooling_Normura20_Jul_2024.pdf - Location: Dropbox/2. Semi/Datacenter/Liquid cooling/
- Pages: 54
- Date: July 19, 2024
- Publisher: Nomura Global Markets Research
- Coverage: Buy rating on Envicool (pure play liquid cooling)
Related
Pages that link here (1)