The surge in AI computing power and increasingly stringent Power Usage Effectiveness (PUE) constraints are making liquid cooling an essential choice for high-density computing scenarios. As the computing power of AI chips, primarily GPUs, continues to break new ground, the thermal design power of data center chips is also rising significantly. Coupled with national regulations limiting the PUE of large data centers to below 1.3, cooling and power reduction have become critical. Liquid cooling technology, leveraging its high thermal conductivity, superior heat transfer characteristics, and excellent PUE performance, is demonstrating economic viability and is accelerating the replacement of traditional air cooling, becoming the core technical choice for AI computing clusters.
Liquid cooling is divided into two technical paths: cold plate and immersion. Currently, cold plate is the mainstream, but immersion cooling, with its extremely high heat dissipation efficiency, absence of hotspots, and suitability for ultra-high-density computing, shows outstanding growth potential. The core consumable for immersion cooling, the coolant, is further categorized into two main types: fluorinated fluids and silicone-based fluids. Fluorinated fluids offer excellent performance and currently dominate the immersion cooling market, while silicone-based fluids have a prominent cost advantage, with their application scenarios and market space gradually expanding.
Market Demand: AI Server Expansion Poised to Drive Cooling Fluid Growth
The global market related to liquid cooling is vast. According to Polaris Market Research, the global data center liquid cooling market size is projected to reach $2.887 billion in 2025 and is expected to grow to $36.589 billion by 2034, representing a compound annual growth rate (CAGR) of 32.6% from 2025 to 2034. Immersion liquid cooling shows particularly strong potential, offering broad incremental space for coolants. According to Hengzhou Chengsi, the global electronic fluorinated fluid market is expected to be approximately RMB 10.56 billion in 2025, reaching RMB 15.92 billion by 2032, with a CAGR of 6.1% from 2026 to 2032. QYResearch estimates the global silicone oil coolant market size was about $63 million in 2024, projected to reach $110 million by 2031, with an average annual compound growth rate of 6.8% from 2025 to 2031.
Supply Landscape: International Giants' Exit Creates Market Space, Domestic Companies Accelerate Deployment
The global electronic fluorinated fluid market has long been dominated by European and American companies like 3M and Solvay. However, 3M has announced a complete exit from its PFAS product line by the end of 2025, releasing significant market space and opening a window for domestic substitution. With AI server expansion driving coolant demand growth and core supplier 3M gradually exiting the coolant market, the domestic immersion cooling fluid market space is expected to open up, prompting domestic companies to accelerate their layout in the liquid cooling industry.
Among fluorinated coolant companies, representatives like Juhua Co., Ltd., Capchem Technology Co., Ltd., and Yonghe Co., Ltd. are accelerating capacity deployment and forming ecosystems through diversified layouts. HEC has established a closed-loop, full-industry chain for liquid cooling computing power—spanning materials, equipment, and operations—through investments and mergers. Jinshi Resources Corp. has strategically invested in Zhejiang Nuoya, entering the fine fluorochemical sector. The domestic coolant industry is entering a period of comprehensive acceleration.
In the silicone-based coolant segment, Runhe Materials is achieving differentiated competition through a modified silicone oil solution. Wynca Group, leveraging its complete organic silicon industry chain, has entered the silicone-based coolant track. Representing hydrocarbon-based coolants, Bohui Chemical Technology Co., Ltd. is deeply involved in hydrocarbon cooling fluids and has established a wholly-owned subsidiary focused on liquid cooling business.
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