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[News] Liquid Cooling Set for a New Era in 2025, Favoring Taiwanese Supply Chain
According to a report by Commercial Times, as NVIDIA’s GB200 is set to officially ship by the end of this year and gradually ramping up in 2025, it is anticipated to usher in a new era of liquid cooling.
TrendForce predicts that the liquid cooling penetration will rise from 11% in 2024 to 24% in 2025. This growth is expected to be fueled by advancements in AI, which we may witness in 2025.
The expansion of liquid cooling will benefit several Taiwanese companies, including Delta Electronics, Asia Vital Components, Auras Technology, LOTES, and Fositek.
The growing global awareness of ESG principles, coupled with cloud service providers (CSPs) accelerating the deployment of AI servers and the upcoming official launch of NVIDIA’s Blackwell platform all contribute to the growth of liquid cooling technology, as the report in Commercial Times indicated.
According to the report, the market is optimistic that the significant growth in NVIDIA Blackwell’s penetration will drive a shift from air cooling to liquid cooling solutions.
Currently, the Hopper architecture remains dominant, commanding 90% of the market share this year. On the other hand, Blackwell is projected to capture only 4% of the market by the end of 2024. However, as Blackwell ramps up sales next year, it is expected to replace Hopper and establish itself as the new mainstream.
From the perspective of thermal design power (TDP), NVIDIA’s GB200 NVL72 racks, with a TDP of approximately 140 kW, will require liquid cooling solutions to manage heat dissipation, with Liquid-to-Air (L2A) technology anticipated to become the predominant method.
While immersion cooling is an option, it faces technical challenges that may prevent it from becoming mainstream in the next 3 to 5 years, as the report stated.
The report highlighted that the market price of a single NVL72 rack is 28 times that of a traditional server. As a result, an increasing number of companies are entering and competing in the liquid cooling market.
Currently, for those Taiwanese companies in the supply chain which may benefit from the market opportunities, Asia Vital Components and Cooler Master lead in providing cold plates, while Cooler Master and Auras supply manifolds, and Vertiv and Delta Electronics provide coolant distribution units.
On the other hand, quick disconnect (QD) components are critical for preventing leakage and have frequently been reported as out of stock. Taiwanese companies like LOTES and Fositek are reportedly in the validation phase, and by the first half of 2025, they are expected to join the list of QD suppliers, to compete with major companies such as CPC, Parker Hannifin, Denfoss, and Staubli.
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(Photo credit: NVIDIA)
Please note that this article cites information from Commercial Times.
