In the past two years, the liquid cooling industry focused on technology and product performance, but recently, discussions have shifted towards capacity expansion, delivery, and mergers. This indicates a new phase in the industry where market demand is clear, and companies are competing to build capacity quickly. According to MIR DATABANK, the liquid cooling system market for data centers in mainland China is projected to reach approximately 27 billion yuan by 2025, with an expected growth to around 32 billion yuan in 2026, marking an over 18% year-on-year increase.
As of August 2026, at least 52 capacity expansion projects related to liquid cooling in China's data center industry have been disclosed, with total investments exceeding 20 billion yuan. Additionally, 21 merger and acquisition transactions have occurred within the industry during the same period. The focus has shifted from whether to invest in liquid cooling to where to invest, highlighting the urgency for companies to enhance their capabilities and market presence.
Looking ahead, the industry is expected to continue its rapid expansion and consolidation. The competition will likely intensify as companies strive to convert their capacity into stable deliveries and secure customer certifications. No further timeline was disclosed at the time of publication.
Editor's Note
The liquid cooling sector is entering a critical phase characterized by rapid capacity expansion and strategic mergers. As companies race to meet the growing demand for data center cooling solutions, understanding the competitive landscape and investment trends will be essential for stakeholders. The focus on both production capabilities and technological integration will shape the future of this market.
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