Google is in discussions with Chinese companies, including Envicool, to procure liquid cooling equipment for its expanding data centre operations, according to sources familiar with the matter.
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The talks follow a recent visit by procurement teams from Google’s Taiwan operations, highlighting growing supply constraints in the rapidly expanding artificial intelligence infrastructure sector.
Liquid cooling systems, which circulate fluids around high-performance computing equipment, have become essential for modern AI data centres as traditional air cooling struggles to manage the intense heat generated by advanced processors.
Sources said Google representatives met with Envicool during the visit and are expected to engage with additional suppliers. Neither company has officially commented on the discussions.
The move underscores increasing global demand for AI infrastructure, where not only advanced chips but also critical components like cooling systems are facing tight supply. It also reflects the rising importance of Chinese manufacturers in the global data centre supply chain despite ongoing tensions between the United States and China.
Industry projections indicate significant growth in the liquid cooling market, with estimates suggesting it could exceed $17 billion by 2026, driven by demand from chipmakers like Nvidia and major cloud service providers.
Founded in 2005, Envicool has seen strong growth, with revenue rising sharply in recent months. The company has developed advanced cooling distribution units tailored to large-scale data centre needs and is reportedly preparing for potential orders linked to Google’s next-generation infrastructure.
Other Chinese firms, including Lingyi iTech and Lenovo, are also gaining traction in the sector, while Taiwan-based suppliers such as Foxconn continue to play a key role in global supply chains.
As the AI race accelerates, competition for both high-end chips and supporting technologies like cooling systems is expected to intensify, reshaping global tech partnerships and supply networks.
