- Eldar Precision pivots from traditional machining into liquid-cooling components for AI infrastructure
- Company revenue jumps as demand for high-performance thermal systems accelerates
Eldar Precision Parts (鄂达精密机电科技), a Hangzhou-based manufacturer founded in 2007, is transitioning from a traditional hardware machining company into a supplier for China’s fast-growing AI liquid-cooling supply chain, as demand for data center thermal management systems surges.
The company reported revenue of more than 100 million yuan ($14.77 million) in the first quarter of the year, up 79.2% from a year earlier, and is targeting 700 million yuan in full-year sales.
The growth has been driven primarily by precision valve components used in liquid-cooled servers, especially those from Nvidia, according to domestic media reports.
A whopping 750% YoY increase
Revenue from the segment surged to more than 41 million yuan in the first three months of the year, up 747.1% year-on-year and accounting for 86.9% of added revenue, making it the company’s largest growth engine.
Eldar supplies components indirectly to global technology supply chains through customers including Schaeffler, Sanhua Intelligent Controls and Asia-Pacific Mechanical & Electronic, with downstream exposure to companies such as Nvidia, Tesla and Google.
The shift reflects how AI infrastructure giants such as Nvidia, whose chips power global data centers, are driving demand for more efficient thermal management systems.
Spillover effects
As AI workloads intensify and rack densities rise, liquid cooling has moved from niche engineering into a core requirement, creating spillover demand for suppliers far down the hardware chain.
For companies like Eldar, once focused on conventional metal machining, the surge has opened a fast-growing niche supplying precision components used in next-generation cooling systems.
To meet rising demand, the company has filed for a 15-million-unit annual capacity expansion project for liquid-cooling server connectors. Once completed, total capacity is expected to rise from 10 million units to 25 million units.
At least 1 billion yuan annually
It has also acquired a 30.6-mu site in Hangzhou’s “China Vision Valley” industrial park to build a headquarters complex, with planned investment of 500 million yuan.
The first phase is expected to be completed by 2028, with projected annual output of at least 1 billion yuan once fully operational.
Eldar has completed a pre-Series A funding round backed by state-affiliated investors including Hangzhou Science and Technology Innovation Fund, Hangzhou Financial Investment Group and Hangzhou Urban Construction Investment Group, and has entered pre-IPO tutoring process, public records show.
In a related development, Hangzhou-based KeenCool (云酷智能), which focuses on single-phase immersion cooling systems for data centers, telecom base stations and energy storage applications, raised nearly 100 million yuan in Series B financing in May 2026, The Yangtzeer reported.
