Google in talks for AI data-center liquid cooling as market nears $17B
Google is in talks with Envicool and other Chinese firms to acquire liquid cooling equipment for high-density AI data centers. The global AI server liquid cooling market is projected to exceed $17 billion in 2026, while Envicool reported 40% revenue growth in the first nine months.
1. Negotiations with Chinese cooling firms
Google’s Taiwan procurement team visited China this month to meet with Envicool and at least one other liquid cooling equipment supplier. Discussions focused on fifth-generation coolant distribution units and related components tailored for Google’s AI data center specifications.
2. Rapid growth in AI liquid cooling market
Demand for liquid cooling has surged as high-density AI servers generate more heat than air cooling can handle. Industry projections show the market expanding from $8.9 billion last year to over $17 billion in 2026, driven by Nvidia and major cloud providers.
3. Envicool’s performance and expansion plans
Founded in 2005 with a market value of 98 billion yuan, Envicool posted 40% revenue growth in the first nine months. It plans to ramp up output at a new Guangdong factory while continuing facility builds in Thailand and the United States.
4. Implications for Google’s AI infrastructure
Securing reliable liquid cooling supply is critical amid component shortages and geopolitical tensions. Partnering with Chinese suppliers could diversify Google’s vendor base but also introduces potential regulatory and operational risks.