AI server liquid cooling orders surge, some companies booked through 2027

Orders booked through 2027, revenue growth exceeding 400%, and production capacity struggling to keep pace with delivery—this is not the story of a major internet company, but the reality of the liquid cooling industry in 2026. Driven by surging demand for AI computing power, liquid cooling is undergoing a transformation from a supporting role to critical infrastructure. Across the supply chain, orders are ramping up, companies are expanding production, and new players are entering the market—this "cold" business, ignited by intelligent computing demand, has never been "hotter."

However, multiple industry insiders note that the liquid cooling sector is crowded with players and highly competitive. Technical routes remain divergent, and manufacturing processes continue to evolve. Only companies that have entered the core supply chains of leading domestic and international giants, mastered key processes, and maintained the ability to iterate continuously will be able to ride the cycle and reap the rewards.

Orders Exceed Expectations, Production Scheduled Through 2027

On September 17, at the Suzhou Liquid Cooling Exhibition, numerous equipment manufacturers showcased core liquid cooling processing equipment, including vacuum brazing furnaces, fin-cutting machines, and laser welders.

Large-scale vacuum brazing furnaces were the most eye-catching exhibits. These furnaces use a high-temperature vacuum environment to melt brazing material, wetting the interface between the microchannel cold plate base and the cover plate to create leak-free sealed channels. Laser welding machines rotated continuously, rapidly completing sealing tasks at various manifold connection points.

Liquid cooling equipment forms the foundation for capacity expansion across the industry.

At present, Jinfu Technology's production base is using laser brazing to process stainless steel corrugated pipes for supply to international manufacturers. The company's liquid cooling production base in Foshan is still ramping up replenishment, with employees working double shifts. "We'll likely have to work overtime through the Mid-Autumn Festival and National Day holidays," a Jinfu Technology staff member told the Shanghai Securities News.

Wu Xiaoshuang, Secretary of the Board at Jinfu Technology, stated: "The company's order book is very full, with scheduling already extending to 2027."

In April 2026, Jinfu Technology completed the acquisition of 51% stakes in Foshan Zhuohui Metal and Foshan Lianyi Thermal Energy for RMB 571 million in cash, officially entering the AI server liquid cooling散热赛道. The company's liquid cooling segment primarily produces copper tubes, corrugated pipes, water distributors, and cold plates, supplying directly to core industry players such as Qi Hong and Baode.

Wu cited operating data from downstream manufacturers to cross-validate the strong order environment: monthly growth rates for core clients' liquid cooling businesses generally range from 50% to 100%, and the company's order rhythm is highly synchronized with client ramp-ups.

Jinfu Technology is not alone. Many listed companies in the liquid cooling supply chain are also seeing order surges.

On September 16, Shenlin Environment signed a supply agreement with an overseas Client A for air conditioning and refrigeration equipment, totaling USD 415 million (approximately RMB 2.782 billion), representing about 66% of the company's 2025 revenue. In the first half of the year, the company's data services segment saw total new orders approximately 2.3 times higher than the same period last year, with liquid cooling-related new orders reaching approximately RMB 1.8 billion.

In 2026, Xingrui Technology focused on key components for computing infrastructure, forming a product matrix centered on high-precision server cabinet structural parts and high-performance quick connectors, precisely targeting the hardware demands for high power, high heat dissipation, and high stability driven by the AI computing explosion.

"Both structural parts and high-performance quick connectors are in short supply this year," said Chen Jiawei, Secretary of the Board at Xingrui Technology. The company has entered the global top-tier supply chain, deeply partnering with industry leaders such as Danfoss, Celestica, and Flex, and indirectly supplying global top-tier CSP cloud computing giants.

Data shows that in the first half of the year, Xingrui Technology's AI server-related hardware business segment achieved revenue of RMB 60.5068 million, a year-on-year increase of 221.49%. Since the beginning of 2026, new orders on hand have reached nearly RMB 1 billion. The company expects this segment to maintain relatively high growth for the full year 2026 and beyond.

The primary-side (outdoor cooling system) liquid cooling business is also seeing full order books. "Our primary-side liquid cooling business has seen revenue growth of over 400% this year, and we remain optimistic about the future," said a representative from a listed company.

Supply Chain Strengthens as Upstream and Downstream Enter a Prosperous Cycle

Meanwhile, the micro-level chains of the entire industry are also expanding.

Several exhibitors at the Suzhou Liquid Cooling Exhibition told reporters that liquid cooling orders have clearly ramped up in 2026, with the entire supply chain working in concert.

Precision cutting tools, known as the "industrial teeth," are core consumables in the cold plate processing flow.

Ding Xianchang, an engineer at Suzhou Xinqijun Precision Tools, said that cutting tools are critical in cold plate processing. Improper tool use can significantly increase costs and further compress cold plate manufacturers' margins. This year, the 3C business is in an adjustment period, while strong demand in the liquid cooling industry has led to a notable increase in tool consumption, with related orders continuing for several months.

Dongjun Intelligent displayed full-line quality control equipment for liquid cooling production, including precision cleaning, air tightness testing, and flow resistance testing. The company's representative said that demand for testing equipment has been heating up since last year, and the company is actively shipping based on its own capacity.

Some component companies are also seeing optimistic order demand.

"Customer orders are already scheduled until after the Chinese New Year. If customers have large-volume needs, we can also set up new capacity to meet demand," a sales representative from a Changzhou-based manifold manufacturer told reporters.

A representative from an air cooling company noted that the current wave of liquid cooling demand is incremental business driven by AI infrastructure construction. This is not a phenomenon unique to China but a global trend.

Listed Companies Actively Expand Capacity to Seize New Opportunities

As AIDC cabinet power density continues to rise, liquid cooling has become an inevitable choice to support high heat flux computing. The value of liquid cooling has evolved from simple heat dissipation equipment to an integral part of the AI infrastructure ecosystem.

CICC estimates that the global liquid cooling market for intelligent computing centers will reach approximately RMB 114.7 billion in 2026, a year-on-year surge of 273%.

Faced with rapidly growing orders, many listed companies have begun expanding capacity to seize the opportunity in this liquid cooling cycle.

"Since the acquisition, the company has been expanding capacity, but it's still difficult to meet customer demand," Wu Xiaoshuang told reporters. The company's recent monthly liquid cooling capacity has grown significantly compared to the time of acquisition. New equipment at bases like Zhuohui is being delivered and installed, with further expansion expected to be completed by late September to early October. Meanwhile, the company has leased 20,000 square meters of factory space near its new headquarters for upstream machining support.

Luo Bin, Director of the R&D Center at Midea Building Technologies, said the company has developed a new generation of magnetic levitation compressors and supporting CDUs, and has deployed multiple production bases in Shunde, Chongqing, Hefei, and Longyan. Among them, the new Shunde liquid cooling intelligent manufacturing base plans a total investment of RMB 1 billion, with 12 specialized liquid cooling production lines. It is expected to significantly enhance the company's large-scale delivery capability for liquid cooling products after production begins in 2027.

In August, Jindi Co., Ltd. announced plans to invest a total of RMB 426 million to build two liquid cooling intelligent manufacturing bases in Liaocheng, Shandong, and Guangzhou, Guangdong. The Liaocheng project will focus on key heat exchange components and high-efficiency heat dissipation module assemblies, while the Guangzhou project will target key liquid cooling components and integrated heat dissipation module assemblies.

Risks Loom Amid Overheating Sentiment and Fierce Competition

As industry enthusiasm runs high, many institutions are also paying attention to potential overheating sentiment, increasingly fierce competition, and risks arising from technical divergence.

Currently, most domestic liquid cooling companies are securing orders based on the mass production of AI computing products from companies like NVIDIA and Google, and are expanding capacity accordingly. However, "revenue growth without profit growth" is the current reality for most companies in the industry. Several industry insiders said that the overseas OEM chain dividend may last for two to three years, but risks of overcapacity or margin volatility cannot be ruled out in the future.

Meanwhile, technical solutions such as cold plate and immersion cooling each have their own advantages and disadvantages and are expected to coexist long-term. Cold plate cooling currently holds a dominant position, and multiple interviewees believe it will remain mainstream for the next three to five years, although the market share of immersion cooling is expected to gradually increase.

In this round of industry consolidation, not everyone selling "shovels" will necessarily make money. Ultimately, the winners will be those who remain clear-headed amid the frenzy and hold the line on profit margins while expanding.