Technology

China’s AI build-out forces a rapid shift to liquid cooling — massive clusters put pressure on domestic suppliers to shift cooling methods

Source

Tom's Hardware

Published

Feb 19, 2026

TL;DR

AI Generated

China's rapid expansion in AI infrastructure is driving a shift to liquid cooling technology due to the immense heat generated by massive clusters. Chinese companies like Envicool are investing in liquid-cooling systems to prevent overheating in AI racks. Beijing's "Eastern Data, Western Computing" strategy is pushing data processing to provinces with renewable energy sources, resulting in the construction of high-capacity intelligent computing clusters. Liquid cooling offers higher efficiency compared to air cooling, especially as chip thermal design power increases, and Chinese firms are racing to localize these capabilities. The move towards liquid cooling is not only driven by chip thermals but also by national energy efficiency policies, with liquid systems improving overall efficiency by reducing fan loads and enabling higher coolant temperatures.

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