Inspur, China’s largest server maker and the third largest server maker in the world, is reportedly planning to build a new large-scale liquid-cooling base amid a surge in demand for AI servers. An Inspur insider told local media outlet CLS that “in March, we saw the AI server market increasing explosively,” pointing to AI generated content’s upswing in popularity as driving the trend. Inspur’s Tianchi base is the largest liquid-cooled data center R&D and production base in Asia and has an annual production capacity of more than 100,000 units, according to the report. The AI industry requires significant computing power, which can greatly increase the power consumption and temperature of processors. Liquid-cooling lowers the temperature of processors. According to data from Chinese consulting firm ccidconsulting, sales in the liquid-cooling industry will surpass RMB 120 billion ($150 million) in China by 2025, with an average annual growth rate of 25% from 2021 to 2025. [CLS, in Chinese]