Fangzheng Securities: Computing power has become the core driving force of new infrastructure, recommending to focus on Envicool and others

According to the Zhitong Finance APP, Founder Securities released a research report stating that the global computing power scale has surpassed 910 EFLPOS, with intelligent computing power accounting for 37% and a growth rate of 136%, becoming a core driving force for new infrastructure. The liquid cooling equipment market size exceeds 10 billion, with high rack power consumption, energy efficiency improvement, and economic factors contributing to the future trend of liquid cooling. It is recommended to focus on Envicool (002837.SZ), which has the capability to provide a full chain solution for liquid cooling, as well as infrastructure providers. Founder Securities' main viewpoints are as follows: Intelligent computing power becomes a new engine, computing power infrastructure market size reaches hundreds of billions The computing power industry chain mainly includes upstream IT hardware and software equipment, midstream computing power networks and platforms, and downstream various application scenarios. According to the type of equipment used and the strength of computing power provided, computing power centers can be divided into three categories: general computing power centers (i.e., traditional data centers), intelligent computing centers, and supercomputing centers. According to data from the China Academy of Information and Communications Technology, by the end of 2023, the total global computing power scale reached 910 EFLPOS (FP32), a year-on-year increase of 40%, of which the growth rate of intelligent computing power reached 136%, far exceeding the growth rate of total computing power. Intelligent computing power is gradually occupying an important position, accounting for 37% of the total, and in the new computing power market scale, intelligent computing power accounts for as much as 74%, making it a major driving force. In the same year, China's total computing power scale reached 237 EFLPOS, accounting for 26% of the global share. The bank preliminarily estimates that the domestic computing power infrastructure market size in 2023 is approximately 324.7-395 billion yuan from the perspectives of unit computing power investment scale and power density. Liquid cooling equipment: The liquid cooling equipment market size exceeds 10 billion, with high rack power consumption, energy efficiency improvement, and economic factors contributing to the future trend of liquid cooling Demand Side Classification of liquid cooling methods: Based on the basic method of cooling liquid and heat source, liquid cooling technology can be divided into contact and non-contact liquid cooling. Among them, non-contact liquid cooling includes single-phase cold plate liquid cooling and phase change cold plate liquid cooling; contact liquid cooling can be divided into single-phase/two-phase immersion liquid cooling and spray liquid cooling. Comprehensive comparison shows that single-phase cold plate liquid cooling accounts for over 90% of the application in liquid cooling data centers, making it the mainstream liquid cooling technology solution at present and for the foreseeable future. Single-phase immersion liquid cooling has more prominent energy-saving advantages, and in recent years, this technology has gradually matured, with the related industry chain developing rapidly and small-scale commercial use continuously advancing. In addition, the technical research and industrial ecology of the three liquid cooling solutions: spray, two-phase cold plate, and two-phase immersion still need improvement. The necessity and advantages of liquid cooling are reflected in three aspects: on one hand, under the trend of high rack power consumption (increasing from 4-6KW in general computing centers to 20-40kW in intelligent computing centers, and gradually developing to 40-120kW or even higher in the future), AI cluster computing power density breaks through 50KW/rack, and traditional air cooling is nearing its limit; on the other hand, under the trend of energy efficiency improvement, the total utilization efficiency of liquid cooling is 15% higher than that of air cooling, significantly reducing energy consumption. Currently, some liquid cooling unit engineering cases have a PUE value of 1.1, and they also save more space. In addition, from an economic perspective, although liquid cooling is more expensive than traditional air cooling in initial investment, from the perspective of total cost of ownership (TCO) over the entire lifecycle, when the cabinet power density exceeds 15KW, the TCO cost of liquid cooling is already lower than that of air cooling, showing a clear cost advantage Liquid cooling market size estimation: According to the bank's preliminary estimation, the domestic data center cooling market size is expected to reach 23.8 billion yuan by 2028, with the liquid cooling market size at 13.6 billion yuan. Supply Side The liquid cooling ecosystem industrial chain mainly includes upstream component suppliers, midstream liquid cooling server providers, and downstream computing power users. Some representative manufacturers include Envicool, Feirongda, Kechuang Xinyuan, Shenling Environment, Gaolan Co., Ltd., Binglun Environment, SANHE TONGFEI REFRIGERATION, and Chuanrun Co., Ltd., among which Envicool has the capability to provide a full-chain solution for liquid cooling. Risk Warning: Risks of computing power capital expenditure being lower than expected, risks of technology research and development and cost reduction being lower than expected, risks of technological iteration, risks of computing power infrastructure progress being lower than expected