Liquid cooling systems, which circulate water or other liquid over or around equipment, have become critical in artificial intelligence (AI) data centres as the high-density computing generates more heat than a traditional air cooling system can handle. At a recent industry event, it showcased a coolant distribution unit (CDU), a critical component of liquid cooling systems that distributes coolant to server racks, built to Google's specifications. The liquid cooling market is highly fragmented, with many suppliers providing different parts of such systems. Chinese suppliers have gradually gained traction, benefitting from strong domestic demand, as the country's many data centre projects have helped them boost production volume and lower costs. Other Chinese parts suppliers benefitting from AI data centre growth include makers of optical transceivers like Innolight and Eoptolink.

Source: The Edge Markets March 17, 2026 07:36 UTC