Dublin, Oct. 30, 2026 (GLOBE NEWSWIRE) -- "China GPU Cooling Solutions - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The China GPU cooling solutions market is expected to grow from USD 3.23 billion in 2025 and USD 4.11 billion in 2026 to USD 15.60 billion by 2031. This represents a CAGR of 30.59% from 2026 to 2031. Market expansion is being driven by the rapid development of artificial intelligence infrastructure, rising GPU power density, government support for domestic technology manufacturing, and growing demand for energy-efficient data center cooling systems.
AI Data Center Expansion Accelerates Liquid Cooling Demand
The rapid deployment of AI clusters in Chinese hyperscale data centers is transforming thermal management requirements. ByteDance's 500 megawatt colocation agreement with VNET and DeepSeek's Inner Mongolia development demonstrate the scale of new computing infrastructure. Rack densities in advanced facilities now exceed 50 kilowatts, making conventional air cooling increasingly unsuitable for high-performance AI workloads.
Alibaba Cloud's Zhangbei data center has combined immersion cooling with wind power to reduce power usage effectiveness to 1.09. The project highlights how liquid cooling can support both operating efficiency and environmental targets. China's Fifteenth Five-Year Plan also encourages data center operators to locate computing capacity near renewable energy resources, helping shorten development schedules and improve access to lower-carbon electricity.
Suppliers offering prefabricated manifolds, sealed coolant loops, and remote-commissioning services are positioned to benefit from faster procurement cycles. These systems allow operators to install high-density GPU cooling infrastructure more quickly while reducing the complexity associated with on-site integration.
Government Incentives Support Localized Cooling Supply Chains
Government policies promoting domestic GPU manufacturing and ecosystem localization are supporting the China GPU cooling solutions market. The Ministry of Industry and Information Technology provides tax incentives to server manufacturers that certify local content across cold plates, pumps, and heat exchangers.
Huawei's Xinghe AI Fabric 2.0 switch, introduced in March 2026, incorporates liquid channels and reduces rack footprint by 30%. Liquid-cooling testing laboratories in Shanghai and Shenzhen are also connecting research institutions with component suppliers, shortening prototype development cycles from six months to approximately eight weeks. These initiatives strengthen domestic supply resilience and help manufacturers prepare for the 2027 China RoHS fluorocarbon cap.
High Installation Costs Remain a Market Restraint
High upfront investment continues to limit liquid and immersion cooling adoption, particularly among smaller data center operators. Turner and Townsend's Data Center Cost Index indicates a 15-25% capital expenditure premium for direct-to-chip systems and a 40-60% premium for immersion tanks. These increases can add USD 3-6 million to the cost of a 10 MW development.
Large hyperscale operators can distribute these costs across long-term customer contracts, but smaller businesses in cities such as Xi'an and Chengdu may postpone upgrades. In regions where industrial electricity costs less than USD 0.06 /kWh, the payback period for immersion cooling can extend beyond four years. This reduces the financial incentive to replace established air cooling infrastructure.
Other factors shaping the market include rising GPU thermal design power above 700 W, greater adoption of immersion cooling in cryptocurrency mining facilities, and limited availability of fluorocarbon-free dielectric fluids that comply with China RoHS requirements.
Immersion and Direct-to-Chip Cooling Gain Momentum
Immersion cooling is projected to achieve the fastest growth among cooling technologies, with a CAGR of 25.50%. Demand is increasing as hyperscale data center operators seek to reduce power usage effectiveness below 1.10. Air cooling held a 47.04% market share in 2025 due to its established use in lower-density racks, but rising AI heat loads are encouraging a transition toward liquid-based systems.
Direct-to-chip cooling is gaining traction in existing data centers where floor-loading limits and ceiling-height restrictions make immersion tanks impractical. Inspur cold-plate cabinets deployed in Beijing pilot projects achieved a power usage effectiveness of 1.15, supporting the viability of liquid cooling retrofits. Hybrid systems combining fan walls with rear-door heat exchangers are also attracting enterprise demand because they allow AI servers and legacy IT equipment to operate within the same facility.
Air cooling will remain relevant for edge inference applications and distributed industrial deployments where GPU power consumption stays below 300 watts. However, liquid cooling is expected to lead new AI cluster installations requiring higher computing density and advanced thermal management.
Rack-Level Cooling Leads Current Deployment
Server and rack-level cooling systems accounted for 59.02% of the market in 2025 and are projected to grow at a CAGR of 26.10%. Their simplified deployment, scalability, and alignment with OEM warranties make them attractive to data center operators. A 2025 CDCC survey found that 68% of managers preferred rack loops for new data halls.
Future GPU developments may increase demand for component-level cold plates. The anticipated introduction of AMD's 1,400-watt MI355X is expected to accelerate this transition in advanced AI training facilities after 2028. Operators will increasingly need flexible cooling strategies that support current rack requirements while preparing for higher thermal output from next-generation accelerators.
Key Topics Covered
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rapid Expansion of AI Clusters in Chinese Hyperscale Data Centers
4.2.2 Government Incentives for Domestic GPU Manufacturing and Ecosystem Localization
4.2.3 Rising GPU Thermal Design Power Exceeding 700W in Next-Gen Accelerators
4.2.4 Growing Adoption of Immersion Cooling in Cryptocurrency Mining Farms
4.2.5 Deployment of Edge Inference Nodes in Smart Manufacturing Zones
4.2.6 Integration of Waste-Heat Recovery for District Heating in Northern China
4.3 Market Restraints
4.3.1 High Upfront Capital Expenditure for Liquid and Immersion Cooling Infrastructure
4.3.2 Limited Availability of Fluorocarbon-Free Dielectric Fluids Meeting China RoHS
4.3.3 Talent Shortage in Liquid Cooling System Design and Maintenance
4.3.4 Grid Water Usage Regulations in Water-Stressed Northern Provinces
4.4 Industry Value Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Impact of Macroeconomic Factors on the Market
4.8 Porter's Five Forces Analysis
4.8.1 Threat of New Entrants
4.8.2 Bargaining Power of Suppliers
4.8.3 Bargaining Power of Buyers
4.8.4 Threat of Substitutes
4.8.5 Competitive Rivalry
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Cooling Technology
5.1.1 Air Cooling
5.1.2 Liquid Cooling (Direct-to-Chip)
5.1.3 Immersion Cooling
5.1.4 Hybrid Cooling
5.2 By Cooling Level
5.2.1 Component-Level Cooling
5.2.2 Server and Rack-Level Cooling
5.3 By Deployment
5.3.1 Hyperscale and Cloud
5.3.2 Enterprise
5.3.3 Government and Research (HPC)
5.3.4 Edge
5.4 By GPU Power Density
5.4.1 Below 300W
5.4.2 300W - 700W
5.4.3 Above 700W
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
6.4.1 Asetek A/S
6.4.2 CoolIT Systems Inc.
6.4.3 Schneider Electric SE
6.4.4 Inspur Electronic Information Industry Co., Ltd.
6.4.5 Lenovo Group Limited
6.4.6 Huawei Technologies Co., Ltd.
6.4.7 Alibaba Cloud (Alibaba Group Holding Limited)
6.4.8 Tencent Cloud Computing (Beijing) Co., Ltd.
6.4.9 Sugon Information Industry Co., Ltd.
6.4.10 GRC (Green Revolution Cooling, Inc.)
6.4.11 Submer Technologies SL
6.4.12 Nautilus Data Technologies, Inc.
6.4.13 Iceotope Technologies Ltd.
6.4.14 Haier Smart Home Co., Ltd.
6.4.15 Chilldyne Inc.
6.4.16 Asperitas BV
6.4.17 Midea Group Co., Ltd.
6.4.18 Vertiv Holdings Co.
6.4.19 Delta Electronics, Inc.
6.4.20 Fujitsu Limited
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-Space and Unmet-Need Assessment
For more information about this report visit https://www.researchandmarkets.com/r/44dwm3
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