Key Takeaways
- Representatives from Google’s procurement division traveled to China in recent weeks to evaluate liquid cooling equipment manufacturers, with Envicool among the companies visited
- Global availability of liquid cooling components has become increasingly constrained amid rapid AI data center construction
- Industry analysts forecast the liquid cooling market for AI servers will reach $17 billion by 2026, nearly doubling from $8.9 billion in 2025
- At a technology showcase, Envicool demonstrated a coolant distribution unit engineered to meet Google’s technical specifications
- According to Goldman Sachs analysts, Envicool anticipates sequential revenue increases in its liquid cooling division, with possible Google contracts under consideration
Google is turning to Chinese manufacturers to address critical cooling infrastructure needs. Representatives from the tech giant’s Taiwan-based procurement division traveled to China recently to evaluate potential suppliers of liquid cooling systems for data center operations.
Multiple industry sources with knowledge of the visit confirmed that Google’s team held discussions with Envicool, a Shenzhen-headquartered cooling technology provider. An additional source indicated the procurement group scheduled meetings with at least one competing supplier. Both Google and Envicool declined to provide official statements when contacted.
Liquid cooling technology operates by circulating water or specialized fluids through or around computing hardware. As AI workloads generate extraordinary heat levels in densely packed server configurations, traditional air-based cooling methods have become insufficient.
This procurement initiative underscores growing supply chain pressures affecting the entire data center ecosystem — extending beyond semiconductor shortages to encompass supporting infrastructure components like cooling apparatus.
Explosive Market Expansion
Analysts at JPMorgan project the worldwide AI server liquid cooling market will experience dramatic expansion, surging from $8.9 billion in 2025 to exceed $17 billion in 2026. This anticipated growth stems from deployment initiatives by Nvidia and major cloud computing platforms implementing proprietary AI processors.
Envicool, established in 2005 and currently carrying an approximate valuation of $14 billion, reported 40% revenue growth during the initial three quarters of last year. During a recent technology exhibition, the company showcased a coolant distribution unit (CDU) — the critical component responsible for circulating coolant throughout server rack systems — custom-engineered according to Google’s exact requirements.
Goldman Sachs published research following a consultation with Envicool executives this month, noting the company projects continued quarter-over-quarter revenue expansion in its liquid cooling segment throughout the current year. The report indicates potential procurement agreements for fifth-generation CDU systems from Google remain under active discussion.
Envicool continues aggressive expansion efforts, including plans for a new manufacturing facility in Guangdong province alongside development projects in Thailand and across the United States.
China’s Rising Position in Cooling Infrastructure
Chinese equipment manufacturers have steadily captured increased market share in liquid cooling technology, supported by robust domestic demand. Massive data center construction projects within China have enabled these suppliers to achieve production scale advantages and competitive pricing structures.
Prominent market participants include Lingyi iTech and Feilong Auto Components, alongside server manufacturers such as Lenovo. The cooling solutions market remains highly fragmented, with numerous vendors specializing in different components within complete cooling architectures.
Taiwanese manufacturers continue serving as primary suppliers for Google throughout Asian markets. Foxconn, Auras, and Delta Asia currently maintain established relationships providing cooling components. Chinese competitors appear positioned to capture incremental orders as supply constraints intensify.
Additional Chinese hardware providers capitalizing on AI infrastructure investment include optical transceiver specialists Innolight and Eoptolink. Printed circuit board producers like Victory Giant Technology count both Nvidia and Google among their customer base.
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