* Google procurement team has met with Envicool, sources

say

* Visit to mainland China reflects tight supply

conditions in Taiwan

* Global market for liquid cooling systems seen nearly

doubling this year

BEIJING/SINGAPORE, March 17 (Reuters) - Alphabet's

Google is in talks with Envicool and other

Chinese firms about buying liquid cooling equipment for data

centres, according to people with knowledge of a visit to China

by one of the U.S. firm's procurement teams.

Liquid cooling systems - which circulate water or other

liquid over or around equipment - have become critical in AI

data centers as the high-density computing generates more heat

than a traditional air cooling system can handle.

The visit by the team from Google's Taiwan operations this

month reflects tight supply of parts for such systems, the

sources said.

During the visit, Google's team has met with Envicool, said

two of three sources, who were not authorised to speak to media

and declined to be identified. The team also plans to meet with

at least one other company, according to a separate source.

Neither Google nor Shenzhen-based Envicool replied to

Reuters requests for comment.

The talks highlight how the global race to build AI data

centre infrastructure has tightened supply of not just advanced

chips but also lower-value equipment, as well as the growing

role of Chinese suppliers in global data centre growth despite

heightened U.S.-Sino tensions.

HUGE MARKET GROWTH EXPECTED

The global market for AI server liquid cooling systems is

projected to surge to more than $17 billion in 2026 from $8.9

billion last year, driven by demand from Nvidia ( NVDA ) and

cloud providers deploying custom AI chips, according to a

JPMorgan report.

Envicool, founded in 2005 with a market value of 98 billion

yuan ($14 billion), saw revenue surge 40% during the first nine

months of the year.

At a recent industry event, it showcased a coolant

distribution unit (CDU), a critical component of liquid cooling

systems that distributes coolant to server racks, built to

Google's specifications.

Envicool expects liquid cooling revenue to grow on a

quarterly basis this year with a pipeline that includes

potential orders from Google for its fifth-generation CDUs and

other components, according to a Goldman Sachs report following

an analyst call with the company this month.

The company has also said it plans to expand capacity at a

new factory in Guangdong province, while continuing to build out

facilities in Thailand and the United States.

The liquid cooling market is highly fragmented, with many

suppliers providing different parts of such systems.

Chinese suppliers have gradually gained traction, benefiting

from strong domestic demand, as the country's many data centre

projects have helped them boost production volume and lower

costs. Leading suppliers include Lingyi iTech and

Feilong Auto Components as well as server

manufacturers such as Lenovo ( LNVGF ).

In Taiwan, companies such as Foxconn, Auras

and Delta Asia are major suppliers of such

parts for Google in Asia.

Other Chinese parts suppliers benefiting from AI data centre

growth include makers of optical transceivers like Innolight

and Eoptolink. Chinese manufacturers

also dominate the printed circuit board market, with companies

like Victory Giant Technology counting Nvidia ( NVDA ) and

Google as clients.

($1 = 6.8831 Chinese yuan)