Google is negotiating with Chinese manufacturer Envicool and other Chinese firms to purchase liquid cooling systems for its data centers.[1] A procurement team from Google's Taiwan operations visited China this month to meet with Envicool and explore partnerships with additional suppliers.[1]
Who's Involved
Google (Alphabet) is the primary buyer seeking cooling equipment. Envicool is the main Chinese supplier mentioned in discussions, along with other unspecified Chinese firms.[1] Other notable liquid cooling suppliers in the market include Lingyi iTech and Feilong Auto Components, as well as server manufacturers like Lenovo.[1] Industry clients of these suppliers include Nvidia, Alibaba, and Tencent.[5]
Context and Significance
Liquid cooling systems have become essential for AI data centers because they circulate water or other liquids around equipment to manage the extreme heat generated by high-density computing—heat that traditional air cooling cannot adequately handle.[1][6] The global AI server liquid cooling market is projected to grow significantly, with JPMorgan estimates suggesting the market could exceed $17 billion by 2026, up from $8.9 billion in 2025.[2][6]
Google's outreach to Chinese suppliers reflects a tight global supply of cooling components needed for AI infrastructure expansion.[1] Chinese suppliers have gained competitive advantage through strong domestic demand, which has boosted their production volumes and reduced costs, making them strategically important partners despite U.S.-China geopolitical tensions.[1][3] Envicool specifically showcased custom-built coolant distribution units (CDUs)—critical components that distribute coolant to server racks—and expects quarterly revenue growth in liquid cooling this year.[1]