Expert Interview Liquid Cooling Trends in Servers

 

I Summary of the Article

 

As the demand for computing power increases with the rise of large models and chip power consumption, cooling technology is transitioning from air cooling to liquid cooling. The introduction of new-generation chips has prompted companies in the industry chain to pay attention and prepare for market changes. Challenges faced by the industry include cost calculation, distinctions between testing modes, and the issue of matching cooling equipment with servers.

 

The conference invited experienced experts to discuss these issues, aiming to provide professional insights into future trends in the computing power market. With the increase in data center server power, liquid cooling technology has shown clear advantages, but its implementation involves significant hardware modifications, leading to high research and production costs. The market size for liquid cooling technology is expected to continue expanding, especially in major cities, influenced by policy drivers and technological advancements.

 

Cold plate technology dominates the market, but there are fluctuations in costs and profits. CDU, as the core component of the liquid cooling system, is priced higher and mainly controlled by major server manufacturers. The industry generally uses power-based cost calculations, and it faces the coexistence of low technical barriers and high challenges. The focus of the discussion also touched on the construction and operating costs of telecom operators and supercomputing centers, technical challenges, and business models. Particularly in optimizing infrastructure costs and improving data center efficiency, the future development of data cooling technology will rely more on technological innovation and industry collaboration.

 

 

II Section Overview

 

1. Discussion on Computing Power Demand and Cooling Technology Development Trends

The conference emphasized several challenges faced by the industry, including cost calculation methods, distinctions between testing modes, and matching cooling equipment (CDU) with servers. It was particularly noted that finding the right balance between cost and efficiency in the liquid cooling field is a critical issue. To gain deeper insights into these challenges, the conference invited an expert with rich experience, who has worked with multiple national supercomputing centers and has an in-depth understanding of technical solutions, cost accounting, and the matching of temperature and power. The goal of this conference is to provide investors and industry professionals with professional insights into future trends in the computing power market and address any questions they may have.

 

2. The Application and Prospects of Liquid Cooling Technology in the Data Center Industry

With the increase in server power in data centers, air cooling technology can no longer meet the heat dissipation needs, and liquid cooling has gradually become the inevitable choice. Cold plate technology currently dominates the market, while single-phase and dual-phase membrane liquid cooling technologies occupy smaller but stable market shares. On the policy front, the government's increasing requirements for energy conservation and emission reduction have further promoted the application and development of liquid cooling technology. The market size for liquid cooling is expected to continue expanding, especially in major cities, where liquid cooling technology will play a larger role in data centers due to policy drivers and technological advancements.

 

3. Data Center Liquid Cooling Systems: Innovations and Challenges

This section explores the technical challenges and market opportunities faced by liquid cooling systems in data centers. On one hand, liquid cooling technology has clear advantages in improving server performance and efficiency, such as enhancing CPU and GPU performance by reducing heat generation, and extending equipment life. However, the implementation of this technology involves significant hardware modifications, including redesigning server architecture and customizing cooling components, which incurs high research and production costs.

 

On the other hand, as the demand for big data and cloud computing grows, liquid cooling technology is gaining the attention of server manufacturers due to its potential cost savings and efficiency improvements. These manufacturers, who lead the development of liquid cooling technology, are establishing dedicated R&D teams and are focused on optimizing liquid cooling solutions through innovation, while also addressing challenges such as compatibility, cost reduction, and achieving economies of scale.

 

Additionally, traditional air conditioning suppliers are trying to transition into the liquid cooling space to adapt to changing market demands. Despite the challenges, liquid cooling technology is becoming increasingly prominent as the cooling trend for data centers, indicating that it will become a key factor in data center construction and operation in the future.

 

4. Market Opportunities for Data Center Liquid Cooling Technology

Currently, the market is divided into two major segments: cloud servers used by clearing centers mainly adopt cold plate technology, while storage devices tend to use air cooling due to its lower cost. Additionally, there is a huge demand for retrofitting old data rooms and constructing new computing centers, with the market size expected to reach hundreds of billions.

 

The application of liquid cooling technology in data centers is becoming more widespread, with cold plates gaining significant attention due to their high efficiency, though their profit margins are large but unstable. At the same time, the upgrade and retrofitting of cooling systems are critical components of data center construction. Although the profit margins are relatively low, demand remains steady.

 

5. Unveiling the CDU: The Expensive Component Behind Servers

The CDU is a device that includes a CPU, stainless steel piping, VCDU, quick connectors, and valves, primarily used for chilled water systems. By assembling these components in a closed box and adding a display to monitor operational parameters, the price of a CDU can be set far higher than its actual cost, resulting in high profits. This market is mainly controlled by several major server manufacturers, who not only produce the hardware but also participate in the related business of the second-hand market.

 

6. The Future of Data Cooling Technology and Its Application Prospects

This discussion focused on the current state of data cooling technology and its application prospects. It was first pointed out that the industry generally uses power-based cost calculations, and methods for estimating the costs of cold plates and thermal boards were mentioned. Next, the cost range for second-hand equipment and the uncertainties in cold plate pricing were discussed.

 

Then, the application ratio of cold plates in servers and their impact on costs were examined. Additionally, the supply chain relationships and competitive landscape of the data cooling industry were analyzed, with special attention to the relationships between large manufacturers like Huawei, Alibaba, Tencent, and their partners. Finally, directions with lower technical barriers and areas with higher technical challenges were identified, and predictions for the future development of data cooling technology were made.

 

7. Challenges of Upgrading Data Center Servers and Cooling Systems

The three major telecom operators face high operating costs due to the excessive number of data centers and are seeking retrofitting solutions. Plans include decentralizing servers and adopting efficient cooling technologies to reduce costs. Technical and profit distribution issues exist, and outside competitors face difficulties entering the market. NVIDIA's liquid cooling solution has garnered attention, but its implementation details and effectiveness are yet to be observed.

 

8. Industry Collaboration Models in the Construction of Domestic Supercomputing and Intelligent Computing Centers

The construction of domestic supercomputing and intelligent computing centers involves cooperation models between multiple companies in the industry chain. These companies include technology and equipment suppliers as well as local companies responsible for project implementation. The cooperation model typically involves technology suppliers providing the necessary technology and equipment to local companies, who then carry out the project implementation and on-site services.

 

Local companies that collaborate with major tech companies like Sugon and Huawei play an important role in project implementation. Additionally, the construction and operation of supercomputing centers require substantial financial investment and technical support, showcasing China's development trends and cooperation characteristics in the field of advanced computing facilities.

 

9. Data Center Construction and Operation

This discussion focused on the construction and operating costs, technical challenges, and business models of data centers. First, it introduced Alibaba Cloud's experience in establishing a data center in the Zhangbei region, emphasizing its advantages in optimizing infrastructure costs. Next, it mentioned common challenges in the industry, such as the choice of electronic non-slip liquids and their impact on servers, and how to reduce costs through technological innovation. Furthermore, the importance of industry chain collaboration and business models was discussed, along with how to adjust strategies based on market demand. Finally, the potential and future direction in the fields of supercomputing and computing power were predicted.