Google eyes Chinese firms for AI data center cooling systems
Google is in discussions with Chinese firms, including Envicool, to procure liquid cooling systems for its data centers, according to sources familiar with the matter.
The talks follow a recent visit to China by a procurement team from Google’s Taiwan operations, reflecting growing supply constraints for cooling components critical to AI infrastructur, News.Az reports, citing Reuters.
During the trip, the team met with Envicool and is expected to engage with at least one other supplier.
Liquid cooling technology—where fluids circulate around computing equipment—has become essential for AI data centres, as high-performance chips generate significantly more heat than traditional air-cooling systems can handle.
Neither Google nor Shenzhen-based Envicool responded to requests for comment.
The negotiations underscore how the global race to expand AI data centre capacity is straining supply chains—not only for advanced chips but also for supporting hardware. They also highlight the increasing role of Chinese suppliers in the global ecosystem despite ongoing U.S.-China tensions.
According to a JPMorgan report, the global market for AI server liquid cooling systems is expected to grow to over $17 billion in 2026, up from $8.9 billion last year, driven by demand from companies like Nvidia and major cloud providers.
Founded in 2005, Envicool—valued at about $14 billion—reported a 40% rise in revenue during the first nine months of the year. The company recently showcased a coolant distribution unit (CDU) designed to meet Google’s specifications, a key component that delivers cooling liquid to server racks.
Envicool anticipates continued growth in its liquid cooling business, supported by potential orders from Google for its latest-generation CDUs and related components, according to a Goldman Sachs report. The company is also expanding production capacity in Guangdong province while building facilities in Thailand and the United States.
The liquid cooling market remains fragmented, with numerous suppliers contributing different components. Chinese firms such as Lingyi iTech and Feilong Auto Components are gaining ground, alongside server makers like Lenovo.
Meanwhile, Taiwanese companies including Foxconn, Auras Technology, and Delta Electronics remain key suppliers for Google in Asia.
Other Chinese firms benefiting from the AI boom include optical component makers Innolight and Eoptolink, as well as PCB manufacturer Victory Giant Technology, which counts both Nvidia and Google among its clients.
By Nijat Babayev
Similar news
