YuanTai Tech Bets on CDU Strategy, Builds AI Data Center After OTC Listing

As demand for AI computing power continues to surge, liquid cooling infrastructure is rapidly taking shape. YuanTai Tech, an AI liquid cooling solutions provider, officially listed on Taiwan’s OTC market on January 16, 2024. Just three days after listing, the company announced an investment of NT$268 million to acquire a 601.11-ping plot of land in Shenkeng from Yong Sheng Construction, commissioning the developer to build a custom data center. The facility will feature five above-ground floors and one basement level, with a total floor area of 2,190.48 pings. This marks YuanTai Tech’s strategic shift from being a liquid cooling equipment supplier to actively participating in AI data center infrastructure development.

Chen Maoqin, Chairman of YuanTai Tech, stated, "The Shenkeng plant represents our next major milestone." Amid rapid iterations in AI chip specifications, most early-stage liquid cooling companies have focused on in-rack cold plate competition. However, Chen chose to "step back from the rack," directing R&D efforts toward Cooling Distribution Units (CDUs) and system pipeline integration. He believes that with chip specifications still unstable, startups cannot afford the risk of entire rack failures due to leaks. By avoiding this high-risk battlefield, YuanTai Tech adopts a "wait-and-see" strategy, developing a standardized CDU platform with over 80% shared core components. This allows customers to upgrade GPUs with only partial replacements, significantly reducing costs and shielding the company from the rapid specification changes that lead to costly attrition.

Chen has outlined a medium- to long-term "Three Arrows" strategy. The first arrow focuses on deepening CDU product technology and developing higher-power models. The second emphasizes data center infrastructure and system integration, offering end-to-end services from planning and design to piping, installation, and maintenance—shifting from selling equipment to providing complete liquid cooling infrastructure solutions. The third arrow aims for vertical integration into cooling components after future capital raising, building a comprehensive liquid cooling supply chain to differentiate from traditional heat dissipation manufacturers.

Operationally, YuanTai Tech has experienced rapid growth. Revenue reached NT$138 million in 2023, increased to NT$290 million in 2024, and hit NT$907 million in 2025—an approximate 2.13x year-on-year increase. The company has completed liquid cooling installations for major domestic and international enterprises, including Realtek Semiconductor, Silicon Motion, Wistron (Taiwan, Mexico, and California Wislab), Wiwynn, Hon Hai (Taiwan, Mexico, and Texas), GMI, Pegatron, and ASUS. It continues to expand into the North American AI infrastructure market.

Chen explained the choice of Shenkeng for the new data center, citing advantages in acquiring large, specially reinforced industrial buildings capable of supporting heavy liquid cooling equipment. The site allows for customized structural planning tailored to high-weight requirements, offering greater flexibility than standard industrial facilities. Located near the tech clusters of Xizhi, Neihu, and Nangang, the center enables rapid connectivity to customer service networks while integrating R&D, production, demonstration, and system validation functions. The fully customized design also reserves expansion space for the next 10 to 20 years, enhancing production efficiency and equipment testing capacity. This Shenkeng facility will serve as a key strategic base for YuanTai Tech’s global expansion in the AI liquid cooling market.