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Google is reportedly in negotiations with Chinese companies including Envicool to purchase data center liquid cooling systems.
According to sources, a procurement team from Google, a subsidiary of Alphabet, recently visited China to negotiate with Invecool and other Chinese companies regarding the purchase of data center liquid cooling equipment.
Liquid cooling systems (which circulate water or other liquids above or around equipment) have become essential for AI data centers because the heat generated by high-density computing exceeds what traditional air cooling systems can handle.
Sources say that Google’s visit this month reflects a tight supply of components for such systems.
Two of the three sources stated that during the visit, the Google team met with Invecool. Another source revealed that the team also plans to meet with at least one other company.
These discussions highlight that the global race to build AI data center infrastructure is not only causing shortages of advanced chips but also of low-value equipment, with Chinese suppliers playing an increasingly important role in the growth of data centers worldwide.
According to a report by JPMorgan, driven by demand from NVIDIA and cloud providers deploying custom AI chips, the global AI server liquid cooling system market is expected to surge from $8.9 billion last year to over $17 billion by 2026.