Alphabet’s Google is in talks with China’s Envicool and other suppliers to procure liquid cooling systems for data centres, sources familiar with the matter said.
The discussions follow a recent visit to China by Google’s Taiwan-based procurement team, reflecting tightening supply of critical cooling components for AI infrastructure.
Liquid cooling systems, which circulate fluids around hardware, have become essential as high-density AI workloads generate heat beyond the limits of traditional air cooling methods.
During the visit, Google representatives met with Envicool and are expected to engage additional Chinese firms, according to sources with direct knowledge of the meetings.
Neither Google nor Shenzhen-based Envicool responded to requests for comment regarding the reported negotiations.
The talks underscore how the global race to expand AI data centres is straining supply chains, extending beyond advanced chips to supporting hardware and components.
According to JPMorgan, the global liquid cooling market for AI servers is projected to exceed $17 billion by 2026, nearly doubling from last year’s $8.9 billion.
Envicool, valued at approximately $14 billion, has seen strong growth and is expanding capacity, positioning itself to capture rising demand from global tech firms.
