Introduction to Liquid-Cooled Optical Modules and Development Trends

SHENZHEN, China - June 18, 2026 - PRLog -- Driven by booming AI computing infrastructure, 800G large-scale deployment and 1.6T commercialization make air cooling insufficient for high-power optical modules. Liquid-cooled optical modules have evolved from customized options to standard configurations for high-end AI data centers, effectively resolving thermal throttling and high bit errors caused by extreme heat with superior heat dissipation efficiency.

Liquid-cooled optical modules are high-efficiency interconnect devices for dense AI clusters, with cooling efficiency over three times higher than air cooling. Three mainstream solutions are widely adopted. First, cold plate contact cooling, the dominant scheme for 800G/1.6T pluggable modules, features easy retrofitting and compatibility with existing OSFP/QSFP-DD form factors. Second, embedded microchannel cooling enables direct chip heat dissipation with over 80W cooling capacity for high-density XPO modules, though requiring strict anti-leakage craftsmanship. Third, full immersion cooling provides uniform heat dissipation for ultra-high-power racks above 60kW, yet requires full rack renovation with high costs.

Liquid cooling lowers operating temperature, reduces component aging and bit errors, and helps data centers achieve PUE below 1.15 to meet energy-saving standards. Currently, 1.6T+ modules with ultra-high heat flux adopt liquid cooling, while low-power LPO-based 800G modules support air cooling for mid-and-low-end scenarios.

Rising global AI capital expenditure promotes large-scale commercialization of liquid-cooled modules. Domestic manufacturers lead global technological iteration and mass production. Innolight tops the global market, holding 40%+ of 800G and 50%–70% of 1.6T market share, with stable mass delivery of mature liquid-cooled 1.6T products. Industry standards are gradually unified. ODCC has released standardized specifications for 800G/1.6T liquid cooling, while vendors are developing new standards for XPO packaging and next-gen interfaces to support future 3.2T products.

The industry still faces major bottlenecks. Embedded and immersion cooling suffer from leakage risks and higher material costs. Core cooling components rely on imports, making liquid-cooled modules 25%–40% more expensive than air-cooled ones and limiting adoption by small and medium data centers. Besides, traditional switch cages lack space for cold plate installation, bringing high retrofitting costs.

In the future, power-hungry 3.2T modules will fully adopt liquid cooling. The integration of silicon photonics and CPO will further drive embedded microchannel cooling, which will be co-designed with optical engine packaging within 2–3 years. Domestic substitution will cut costs, narrowing the cooling-type price gap within 10% by 2027 and expanding the domestic market to over 10 billion RMB. LPO lightweight cooling will serve mid-to-low-end scenarios. Cold plate cooling will dominate in the short term, while immersion cooling will grow rapidly in the long run. Backed by green computing policies, the industry will sustain over 50% annual growth for more than five years.

--https://www.gigalight.com/news-events/insights-10393.html