Walk into any modern AI data center, and you’ll immediately be hit in the face by heat. Even before you’ve set your eyes on the racks, you feel the output of rows upon rows of servers pushing air through increasingly dense racks that were never designed for processors drawing the sheer power needed to run huge AI models. Multiply that across dense training clusters, and the thermal envelope becomes one of today’s greatest engineering constraints.

Now, according to reporting by the South China Morning Post, China is accelerating investments in liquid cooling technology. Dozens of Chinese companies — including Envicool, whose shares have more than tripled over the past year — have announced plans to expand into liquid-cooling systems to prevent AI racks from overheating. With thermal envelopes riding, this isn't a problem unique to Chinese data centers, either.