Google, the cloud and search unit of Alphabet (NASDAQ:GOOGL), has opened negotiations with Chinese manufacturers to secure liquid cooling systems for its data centre operations, with one of the firms identified as Envicool (SZ:002837).
Those discussions come after a procurement delegation from Google’s Taiwan arm traveled to China for meetings, a development that reflects tight global availability of certain cooling parts used in artificial intelligence infrastructure. The company’s team has already met with Envicool and intends to hold talks with at least one more supplier.
Liquid cooling systems work by circulating fluids around computing components to draw heat away from high-density hardware. As AI workloads pack more processing power into servers, the heat generated can exceed the capabilities of traditional air-cooling approaches, making liquid cooling a critical component in modern AI data centre design.
The talks involving Google underline a broader market pressure: the fast pace of AI data centre construction is increasing demand not only for advanced chips but also for supporting equipment such as cooling systems. This expansion is stretching supply chains beyond semiconductor production into areas of thermal management and infrastructure hardware.
JPMorgan estimates, cited in coverage of the discussions, indicate the global market for AI server liquid cooling systems could top $17 billion by 2026. That projection highlights the scale of potential demand for suppliers in the liquid cooling segment as data centre operators scale up capacity for AI workloads.
Separately, an investment research service described in the original reporting notes that automated screening tools evaluate Alphabet alongside thousands of other firms across numerous financial metrics, identifying stocks based on fundamentals, momentum, and valuation criteria; the service referenced historic return examples for other technology-related stocks. The note was presented as context for investor interest in companies involved in AI infrastructure and related supply chains.
Contextual note - The current discussions and market estimates point to mounting commercial interest in liquid cooling as AI compute density increases. Procurement visits and supplier meetings are being used to secure capacity and components amid constrained supplies.