I. Liquid-cooled server market: A high-certainty, high-growth track driven by AI computing power.
Liquid-cooled servers have become a core standard for high-power AI computing infrastructure. The industry is in a period of rapid penetration and explosive growth, with extremely strong growth certainty.
(I) Core Market Size and Growth Rate
According to the latest data from IDC, CCID Consulting, and other institutions, China's liquid-cooled server shipments reached 670,000 units in 2024, a year-on-year increase of 130%, with the market size exceeding 20 billion yuan. In 2025, the year-on-year growth rate of shipments exceeded 80%, and the market size exceeded 40 billion yuan, with the penetration rate increasing from 12% in 2024 to 22%. It is projected that the industry's compound annual growth rate (CAGR) will remain stable above 35% from 2026 to 2030. By 2030, the domestic market size will exceed 200 billion yuan, with a penetration rate exceeding 50%, becoming the mainstream cooling solution for intelligent computing centers. The global market is also experiencing rapid growth, with the global liquid-cooled server market size exceeding 12 billion US dollars in 2025, and a CAGR exceeding 30% over the next 5 years.
(II) Core Growth Drivers (Rigid Demand, No Alternatives)
Computing power density drives technological iteration: AI GPU single-card power consumption is soaring from 300W in 2020 to over 800W in 2025, and single-rack power density is increasing from 10kW to 60kW+. The physical limit of air cooling is only 30kW per rack, making liquid cooling the only scalable ultra-high power cooling solution.
Strong dual-carbon policy constraints: Core cities in China require newly built large data centers to have a PUE ≤ 1.2, while key cities like Beijing, Shanghai, Guangzhou, and Shenzhen require ≤ 1.15. Liquid cooling systems can achieve PUEs as low as 1.05-1.1, fully complying with policy requirements. Some regions also offer electricity price discounts, making it a must-have option for new data centers.
The maturity and standardization of the industrial chain are accelerating: Cold plate and immersion liquid cooling technologies have been commercialized on a large scale. Leading manufacturers such as Huawei, Inspur, Sugon, and Lenovo have made full-stack deployments, and industry standards have been introduced one after another, solving pain points such as compatibility and construction specifications, and accelerating the industry's popularization.
(III) Core Needs of the Industry Chain: Piping Systems are the Core Link in Liquid Cooling Implementation
Liquid cooling systems are divided into two main routes: cold plate type (currently the mainstream, with a market share of approximately 70%) and immersion type (high growth rate, with a market share of approximately 25%). Both require the construction of a complete fluid circulation piping system, including the primary side (outdoor cold source), the secondary side (main pipeline in the data center), and the tertiary side (branch pipelines within the server racks). A smart computing center with tens of thousands of racks can have 300,000 to 500,000 weld joints in its liquid cooling piping. This places extreme demands on zero-leakage sealing, high cleanliness, high consistency, and high construction efficiency in the welding process. Manual welding is affected by human factors, making it difficult to guarantee the uniform quality of weld joints in batches, and it cannot meet the stringent standards of smart computing center construction. Against this backdrop, high-end automated pipeline welding equipment, represented by KEPUNI, has become a mandatory standard for liquid cooling pipeline construction due to its precise process control and stable quality output. Its core advantages precisely match the core pain points of the liquid cooling sector, laying a crucial foundation for the industry's large-scale implementation.
II. KEPUNI Automatic Pipe Welding Equipment: Deeply Benefiting from the Liquid Cooling Sector's Dividends, with Full-Scale Growth Potential Opening Up
KEPUNI is a core manufacturer of high-end automated pipe welding equipment in China, specializing in all-position automatic pipe welding machines, prefabricated pipe automatic welding production lines, and portable automatic pipe welding machines. Its core advantage lies in high-precision clean welding of thin-walled stainless steel/carbon steel pipes. Previously, it has achieved large-scale application in fields such as biomedicine, semiconductor clean pipelines, and food and beverage, which is highly compatible with the core needs of the liquid cooling industry.
(I) Core Growth Opportunities: The Liquid Cooling Sector Opens a Second Growth Curve
**Continued Expansion of the Rigid Incremental Market:** The domestic liquid cooling pipeline system market size is projected to exceed RMB 15 billion by 2025, corresponding to a new market size of over RMB 2 billion for automated pipeline welding equipment. The CAGR for demand is expected to exceed 40% over the next three years. In addition to newly built intelligent computing centers, the existing air-cooled data centers with over 7 million standard server racks in China will gradually undergo liquid cooling upgrades, bringing continuous secondary growth. KEPUNI, with its deep compatibility with liquid cooling scenarios, is a core beneficiary of this incremental market.
**Increased Industry Barriers Benefit Leading Domestic Manufacturers:** Leading internet companies, telecom operators, and liquid cooling integrators have all explicitly required automated welding for liquid cooling pipelines, setting strict certification thresholds for welding precision, cleanliness control, and stability. KEPUNI, with its years of technological accumulation, can easily pass various stringent tests, while many small and medium-sized manufacturers cannot meet these standards due to technological shortcomings. Market share will accelerate its concentration towards companies like KEPUNI that possess core technologies.
The benefits of domestic substitution are accelerating: Previously, the high-end cleanroom pipeline automatic welding market was monopolized by overseas brands such as Olympus and Miller. Imported equipment was expensive, had long delivery cycles, and slow service response. Domestic brands like KEPUNI offer products priced at only 50%-70% of imports, with delivery cycles shortened by over 60%. Coupled with policy guidance for domestic production in the liquid cooling industry, the substitution process is accelerating. Furthermore, KEPUNI's localized service system perfectly adapts to the short-cycle, high-intensity construction pace of domestic liquid cooling projects, further highlighting the advantages of domestic products.
Application scenarios can be extended in multiple directions: Leveraging the high-end welding technology accumulated in the liquid cooling sector, it is possible to simultaneously expand into high-growth sectors such as hydrogen energy, energy storage, semiconductors, and biomedicine, forming a multi-driven growth pattern.
(II) KEPUNI's Core Competitive Advantages: Precisely Matching Liquid Cooling Needs, Building Technological and Service Barriers
Perfectly Matching Products to Liquid Cooling Requirements, Solidifying Core Quality
KEPUNI's core products focus on welding thin-walled stainless steel pipes (0.5-6mm wall thickness), perfectly compatible with the mainstream 316L stainless steel and aluminum alloy materials in liquid cooling systems, enabling all-position single-sided welding with double-sided forming. It employs advanced fully automatic TIG welding technology, with a tungsten electrode rotating uniformly around the pipe, resulting in a stable and uniform arc. The weld joint is free of oxidation and slag, fully meeting the anti-clogging requirements of liquid cooling microchannels. The welding qualification rate is consistently above 99.5%, completely solving the core pain point of liquid cooling system leakage. The equipment is equipped with a closed-loop intelligent control system that can monitor and adjust key parameters such as current, welding speed, and wire feed speed in real time, ensuring consistency in batch welding and completely eliminating human error from manual welding. Simultaneously, it has built-in USB + Ethernet port data recording functions, enabling full-process traceability of welding parameters and procedures, easily meeting the quality audits and compliance requirements of leading customers. In terms of equipment durability, core components utilize imported German materials, coupled with a full-body water-cooling system and four-way gas protection design, enabling continuous operation for extended periods without overheating or interruption, meeting the high-intensity construction demands of intelligent computing centers. The product matrix comprehensively covers portable field welding machines and factory prefabrication production lines, perfectly adapting to the entire process requirements of liquid cooling projects—"factory prefabrication + on-site installation"—ensuring both efficient mass production in the factory prefabrication stage and flexible adaptability for on-site installation.
Shared Industry Technology Accelerates Customer Certification Implementation
KEPUNI has cultivated deep expertise in the biopharmaceutical and semiconductor cleanroom piping fields for many years. These industries have even higher requirements for welding cleanliness and sealing than the liquid cooling industry, accumulating mature technical solutions and benchmark cases that meet stringent standards such as GMP, FDA, and ASME BPE. Leveraging this shared technological advantage, KEPUNI can quickly migrate existing processes to the liquid cooling sector, significantly shortening the certification cycle for leading internet companies, operators, and liquid cooling integrators, and rapidly penetrating the core supply chain.
Customized and localized services create a differentiated competitive advantage. Addressing the diverse piping specifications and complex site environments of liquid cooling projects, KEPUNI offers a full range of services including equipment customization, welding process optimization, and operator training. Leveraging its own R&D and production bases, KEPUNI can quickly respond to customers' individual needs. In terms of after-sales service, KEPUNI has established a comprehensive service network in the Yangtze River Delta region, achieving 24/7 response and on-site arrival within 48 hours—far faster than imported brands—perfectly suited to the short-cycle, high-intensity construction pace of domestic liquid cooling projects.
(III) Core Challenges
Increasingly Fierce Industry Competition: The high growth potential of the liquid cooling sector has attracted numerous traditional welding manufacturers to enter the market. Some companies are using low-price strategies to seize market share, potentially triggering price wars and squeezing industry profit margins.
High Supply Chain Certification Thresholds for Leading Customers: Core demand for liquid cooling is concentrated in major internet companies, the three major telecom operators, and leading liquid cooling integrators. These customers have extremely high requirements for supplier qualifications, benchmark cases, and product stability. Certification cycles are lengthy, requiring continuous investment to break through core supply chain barriers.
Continuous Pressure from Technological Iteration: Liquid cooling technology is still rapidly iterating. New technologies such as immersion cooling and two-phase flow liquid cooling place new demands on pipe materials, pressure resistance, and welding processes, requiring continuous R&D investment to keep pace with the industry's technological upgrades.
III. Overall Outlook Summary:
The liquid-cooled server market is in a long-term, high-growth phase with certainty. Automatic pipe welding equipment is a standard requirement for liquid cooling system construction, and industry demand will continue to expand. KEPUNI possesses strong market entry capabilities and growth potential, thanks to its product performance highly compatible with the liquid cooling industry, its accumulated expertise in high-end clean welding technology, its cost-effective domestic production advantages, and its comprehensive customized service system. Its core equipment not only addresses key pain points in liquid cooling pipeline welding, such as zero leakage, high cleanliness, and high consistency, but also meets the stringent standards of intelligent computing center construction through its end-to-end intelligent control and traceability system. In the short term, the key breakthrough lies in leveraging existing benchmark cases to accelerate entry into the core supply chains of leading liquid cooling integrators and IDC operators. In the medium to long term, it can leverage its technological accumulation in the liquid cooling sector to expand into high-end welding scenarios in hydrogen energy, energy storage, semiconductors, and other fields, growing into a leading domestic enterprise in high-end pipeline automatic welding equipment, with a very broad development prospect.