CITIC Securities: CDU technology path evolves, electronically shielded pumps welcome historic replacement inflection point
The Zhitong Finance App learned that CITIC Securities released a research report saying that the continuous increase in AI computing power density has accelerated the large-scale application of liquid cooling technology. In the liquid cooling system industry chain, it is recommended to focus on CDU pump links with high value, deep certification barriers, and relatively limited supply in compliance at this stage. As overseas supply chain entry mechanisms are relaxed and technology routes evolve towards zero-leakage shielded pumps, leading domestic enterprises with system-level collaborative R&D capabilities and pre-verification advantages are expected to be the first to benefit. It is recommended to focus on two main lines of industrial expansion: one is a target that relies on chemical-grade shielded pumps to achieve high-end replacement and rapid customer verification; the other is a target with cross-field application capabilities and a broad customer base based on automotive-grade electronic pump platforms.
CITIC Securities's main views are as follows:
CDU liquid cooling pump: the core driving device for liquid cooling systems, with high added value and high technical barriers
The CDU (coolant distribution unit) acts as a fluid distribution hub in a liquid cooling system. It coordinates functions such as heat transfer, fluid circulation, and temperature and pressure control between the facility's cooling source and the server cooling circuit. In the CDU system architecture, which includes plate heat exchangers, liquid storage tanks, valves and sensors, the circulation pump is a key device that provides continuous fluid circulation power, which directly determines the flow rate, lift, operating power consumption, circuit stability and redundancy capacity of the system. We estimate that from material cost (BOM) structural analysis, liquid cooling pumps account for 20% to 30% of the total cost of CDU, and are one of the high-value core components. Therefore, the CDU liquid cooling pump is not a basic auxiliary spare part, but a high-value-added core fluid drive device that enables stable liquid supply and heat transfer in the system.
The adjustment of the procurement access mechanism is synchronized with technological iteration, and the shielded liquid cooling pump has entered the accelerated replacement stage
Overseas liquid cooling pumps mainly use traditional mechanical pump solutions from foreign brands due to the relatively closed supplier system in the early days. However, the mechanical shaft seal structure is prone to wear and fluid leakage under 7×24 hour high-load operation conditions in AI data centers, making it difficult to meet high service level agreements and low OPEX requirements at the same time. Leading cloud service providers have introduced magnetic pumps to solve the leak problem, but in actual applications they face the challenges of high procurement costs and limited production capacity. Currently, with the gradual relaxation of the procurement access mechanism for end customers, domestic shielded pumps rely on overall static sealing technology to eliminate the risk of leakage, achieve high trouble-free operation time, and provide better TCO. They have shown comprehensive advantages in terms of technical indicators and economy, and have become the main direction for upgrading overseas liquid cooling pump technology.
System collaboration and long-term verification significantly raise the entry threshold for the liquid cooling pump process
A liquid cooling pump is not a basic general hardware manufacturing process. It not only needs to meet the requirements of high heat transfer, low noise, and absolute sealing within the CDU limited space, but also requires deep collaboration with the thermal response and control algorithm of the whole machine. Based on the core demands of end customers for long-term stable operation of equipment under complex operating conditions, the “Liquid-Cooling CDU Pump Market — Global Industry Analysis, Size, Share, Growth, Trends and Forecast” industry white paper (Dataintelo) mentions that the certification of this process must go through more than 3 quarters of strict testing, and the complete commercial introduction cycle lasts 1.5 to 3 years. Although the global general pump company base is huge, most of its business is focused on the general industry or construction water sector, and it is difficult for the existing technical system to directly meet the strict standards of liquid cooling scenarios in data centers. The number of companies in the industry that also have cross-field R&D capabilities, customized development experience for major customers, and long-term test data support is relatively limited.
Risk factors:
Liquid cooling penetration rate falls short of expectations; overseas customer expansion falls short of expectations; raw material prices have risen sharply; AI data center infrastructure falls short of expectations; changes in technology routes or competition increase risks.