BNP Paribas: AI Liquid Cooling Demand Continues to Expand, Vertiv and Eaton Best Positioned
Alina Collins
BNP Paribas, joined by a former Microsoft data-center expert, argues that surging AI server power density is making liquid cooling the core incremental need in data centers, with Vertiv and Eaton named as the top beneficiaries thanks to end-to-end system integration.
Why has liquid cooling suddenly become a must-have?
AI chip power density keeps climbing; traditional air cooling alone can no longer handle the heat.
With Nvidia's Rubin platform — its next-generation AI computing platform — due later this year, per-rack cooling demand is expected to rise more than 20%.
The industry is moving toward an 800V DC architecture, with single-rack power loads eventually approaching 1 megawatt. This means → what counted as an "extreme scenario" a few years ago is becoming the new normal — cooling is no longer a side function but the core infrastructure bottleneck.
Who stands to gain the most?
Vertiv: deep expertise in both power management and thermal systems; BNP Paribas calls its market position "particularly strong."
Eaton: broad electrical-infrastructure coverage spanning grid connection, power delivery, and AI chip support — in plain terms = it can handle every link from "power entering the building" to "heat leaving the chip."
Put simply = neither company sells just one component. Both can deliver a full packaged system — exactly what hyperscale customers value most.
Why does "system integration" work as a moat?
The former Microsoft data-center expert's core judgment: "The real winners are the companies that understand the entire system."
This means → hyperscale operators increasingly prefer suppliers that offer integrated, end-to-end cooling solutions rather than buying standalone components and assembling them in-house.
This reflects a market reality: fears that cooling hardware will become commoditized are overstated. The gap between players who can integrate a full system and those who sell a single component will only widen.
Will traditional chiller units be made obsolete?
The market has worried that traditional chiller units — large machines that run the refrigeration cycle inside a data center — could be replaced by newer cooling approaches.
The former Microsoft expert pushed back explicitly: regardless of how air-water cooling combinations evolve, chillers will remain an important part of data-center cooling architecture.
In plain terms = chillers are not being retired — they are being repositioned, shifting from "the only solution" to "a critical piece in a blended approach."
In Europe, who leads and who is uncertain?
BNP Paribas names LU-VE as its top pick in European cooling, citing its leading position in dry coolers and "free cooling" systems.
On CAREL and Belimo, BNP Paribas is more cautious — whether either can capture meaningful incremental share from the liquid-cooling transition remains uncertain.
This signals a bigger question: Microsoft, Amazon, Alphabet, and Meta are pouring hundreds of billions of dollars into AI. Whether this capex wave continues to flow through to equipment and cooling suppliers is the key variable that will test the entire investment thesis.
Content is for reference only, not financial advice.