Data Center Cooling Market by Solution (Air Conditioning, Chilling Unit, Cooling Tower, Economizer System, Liquid Cooling System, Control System, Others), Service, Type of Cooling, Data Center Type, End-use Industry, & Region - Global Forecast to 2030
Updated on : October 08, 2024
Data Center Cooling Market
The global data center cooling market was valued at USD 12.7 billion in 2023 and is projected to reach USD 29.6 billion by 2030, growing at 12.8% cagr from 2023 to 2030. The data center cooling industry is predominantly driven by the increasing demand for enhancing the efficiency of cooling systems in terms of server and rack density load due to cloud computing and artificial intelligence adoption. As data centers expand and add more high-density servers to their infrastructure, cohosting sites will require cooling systems for the best operating environment. The additional heat and stress on data centers make this even worse. Further pressure to reduce cooling energy consumption to support sustainability goals and ease operating costs comes from the latest environmental regulations affecting liquid cooling systems. The enhanced cooling technologies creating extensive ripples in the global data center rack server market are modular and scalable systems that allow better handling of thermal concerns by effectively consuming very low kW power demands.
Data Center Cooling Market Size, Dynamics and Ecosystem
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Data Center Cooling Market Dynamics
Driver: Number of Data Centers and their Efficiency
The development of numerous data centers and a robust interest in building more efficient ones drive the cooling market. The uptake of cloud computing, AI, and IoT are becoming more common globally, driving the increase in demand for global data centers and helping drive a need to provide state-of-the-art cooling solutions. Cooling technologies, through liquid cooling systems and AI-driven optimization tools, ultimately help data centers become greener by reducing energy consumption or overall CAPEX. This is encouraging the adoption of advanced cooling solutions, which further necessitate companies across the globe to comply with strict regulations about energy efficiency, as well as huge efforts from top companies to minimize their carbon footprints. Increasing data generation and storage has fueled the demand for efficient cooling solutions in data centers, driving market share over the forecast period.
Restraint: High investment costs
The high investment cost is the primary restraint for data center cooling market growth. Operating high-capacity cooling systems can be quite expensive; the costs are not dissimilar to mechanical equipment. The financial strain and the technical difficulties involved in cooler selection when high-tech cooling solutions are used make this a highly complicated process requiring specific expertise. Furthermore, with no standardized products available, one must procure at a costly and inefficient rate. While some solution providers have started to develop new, inexpensive cooling methods that can be combined with existing infrastructure designs, the current upfront costs still need to be lowered many from entering the market.
Opportunity: Advanced liquid cooling systems, modular cooling solutions, and cutting-edge cooling technologies.
The Data Center Cooling Market presents considerable opportunities driven by emergent technologies and evolving needs. As liquid cooling systems become more popular by reliably managing heat from high-performance computing, energy requirements are expected to decrease. Additionally, the increasing adoption of modular cooling solutions facilitates easy and scalable deployment, enabling organizations to adjust to fluctuating demands. Advanced technology solutions like AI-driven optimization and waterless cooling systems for top energy efficiency also contribute to sustainability goals. These intersected trends could mean a healthy data center cooling market as it expands to meet growing demands for better processing and changing environmental needs.
Challenge: Cooling issues during power outage
Within this context, one problem that specifically becomes exacerbated is the difficulty of keeping data center equipment sufficiently cool in hot environments when cooling systems go down during power outages as temperatures can skyrocket. Even with Uninterruptible Power Supply (UPS) systems, servers can remain on, but the temperature will skyrocket up to 135 degrees in just 35 seconds, which is a hazardous condition for IT equipment. These temperature spikes can be costly when data centers are either under-equipped or not configured with adequate backup cooling solutions. Additionally, maintaining operational continuity becomes a significant concern, as unplanned disruptions lead to lost revenue and customer dissatisfaction. To overcome these challenges, data center operators need to invest in quality backup cooling solutions and design a sound contingency plan that pairs with UPS systems to maintain optimal temperatures during power failures.
Data Center Cooling Market Segmentation & Geographical Spread
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“Row/rack-based cooling systems are expected to experience the fastest growth rate in the cooling segment from 2023 to 2030.”
Row/rack-based cooling systems should grow faster than other types during this time because they cool high-density data centers well. They send cool air to hot spots, which moves air better and uses less power than old methods. As servers use more power, they need better cooling, so row/rack designs look good. New modular designs and smart tracking tech help control heat and cut running costs. Rules pushing for less energy use and being green make more people use these systems. This shows they'll matter even more for cooling data centers later. This change makes things run better and greatly helps the data center cooling market grow.
“Research and Academic Sector Poised for Highest Growth in Data Center Cooling Market between 2023 and 2030 among various industry segments."
The data center cooling market is set to grow fastest in the research and academic sectors from 2023 to 2030. This expansion stems from the increased need for high-performance computing (HPC) to back complex simulations and data analysis in research settings. HPC workloads create much heat, leading to the adoption of advanced cooling methods. Liquid technologies, such as direct-to-chip and immersion cooling, are gaining popularity due to their effectiveness. Also, intelligent cooling management systems with IoT sensors and AI boost cooling optimization and energy savings. Research institutions face pressure to use greener cooling technologies as sustainability becomes more important. The quick growth in this sector shows how crucial efficient cooling is to meet the computing needs of today's scientific research and education.
“Based on data center type, mid-sized data centers look to expand faster in the coming years.”
These facilities cover 10,000 to 25,000 square feet and are ready to take off in the data center cooling market. They play a crucial role in helping medium-sized companies go digital. Several factors drive this trend: They're budget-friendly, meet energy rules, and can grow with IT needs. Their cooling systems are crucial to improving virtual setups and helping data centers change. This growth pushes new ideas and money into cutting-edge cooling tech, which helps the whole data center cooling market grow.
“Asia Pacific region is projected to register the fastest CAGR during the forecast period, driven by rapid digitalization across India, Japan, and China.”
Growing digitalization across the APAC region, supported by strong government initiatives to strengthen a country's digital infrastructure, would drive the demand for advanced cooling solutions as the region has a high percentage of the population with internet connectivity. This would also lead to growth in edge computing, which would further require efficient cooling solutions specifically designed to meet data processing requirements at a localized level. The Asia Pacific is set to be a key growth driver in the global data center cooling market due to strong government initiatives for digital infrastructure development and increasing adoption of edge computing. This would boost the demand for energy-efficient cooling solutions tailored to local data processing needs.
Data Center Cooling Market Players
Major companies in the green methanol market are Schneider Electric (France), Fujitsu (Japan), Daikin Industries Ltd. (Japan), Hitachi Energy Ltd. (Japan), and Johnson Controls, Inc. (US). More than 17 players have been covered. These players have adopted product launches, agreements, joint ventures, investments, acquisitions, mergers, and expansions to consolidate their market position.
Read More: Data Center Cooling Companies
Data Center Cooling Market Report Scope
|
Report Metric |
Details |
|
Market Size Available for Years |
2018 to 2030 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2030 |
|
Forecast Units |
Value (USD Million) |
|
Segments Covered |
Component, Solution, Services, Type of cooling, Data center type, industry and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
|
Companies Covered |
The major market players include Asetek (Denmark), STULZ GmbH (Germany), Coolcentric (US), Rittal GmbH & Co. KG (Germany), Nortek Air Solutions, LLC (US), Schneider Electric SE (France), and Vertiv Holdings Co. (US), and others. |
This research report categorizes the data center cooling market based on application, end-use industry, and region.
Based on Component, the data center cooling market has been segmented as follows:
- Solution
- Services
Based on Solution, the data center cooling market has been segmented as follows:
- Air Conditioning
- Chilling Units
- Cooling Towers
- Economizer Systems
- Liquid Cooling Systems
- Control Systems
- Others (Pumping Units, Humidifiers, and Air Coolers)
Based on Services, the data center cooling market has been segmented as follows:
- Consulting
- Installation & Deployment
- Maintenance & Support
Based on Type of Cooling, the data center cooling market has been segmented as follows:
- Room-based Cooling
- Row/Rack-based Cooling
Based on Data Center Type, the data center cooling market has been segmented as follows:
- Large Data Centers
- Enterprise Data Centers
- Mid-sized Data Centers
Based on Industry, the data center cooling market has been segmented as follows:
- BFSI
- IT & Telecom
- Research & Academic
- Government & Defense
- Retail
- Energy
- Manufacturing
- Healthcare
- Others (Media & Entertainment and Transportation & Logistics)
Based on the region, the data center cooling market has been segmented as follows:
-
North America
- US
- Canada
-
Europe
- Germany
- UK
- Netherlands
- France
- Italy
- Rest of Europe (Russia, Turkey, Spain, the Czech Republic, Belgium, and Denmark)
-
Asia Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific (Australia, Singapore, Malaysia, Thailand, Indonesia, Vietnam, and New Zealand)
-
Latin America
- Brazil
- Mexico
- Rest of Latin America (Chile, Argentina, and Colombia)
-
Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa (Iran, Bahrain, Qatar, Turkey, and Jordan)
Recent Developments
- In December 2023, Vertiv, a worldwide supplier of essential digital infrastructure and continuity solutions, revealed its acquisition of CoolTera Ltd., a specialist in coolant distribution infrastructure for liquid cooling technology in data centers. This acquisition aims to bolster Vertiv's capacity to deploy AI solutions at a large scale and improve its ability to meet the demands of global data center clients. CoolTera specializes in designing and producing coolant distribution units (CDU), secondary fluid networks (SFN), and manifolds tailored for liquid cooling solutions in data centers.
- In May 2023, Fujitsu and Microsoft unveiled a worldwide collaboration to facilitate "sustainability transformation" and assist enterprises in migrating their workloads to the cloud. Fujitsu will leverage its expertise in data center infrastructure, complemented by Microsoft's Azure cloud computing platform. This strategic partnership offers businesses a holistic solution for modernizing their IT infrastructure.
- In November 2023, Schneider Electric and Compass Datacenters extended their collaboration through a multi-year agreement valued at USD 3 billion. This initiative focuses on producing and distributing prefabricated modular data center solutions. The goal is to streamline their supply chains, ensuring faster, more reliable, and cost-effective delivery of finished products.
Frequently Asked Questions (FAQ):
What is Data center Cooling?
Data center cooling refers to managing and regulating temperature and humidity within data centers to optimize the performance and longevity of IT equipment. Efficient cooling is crucial for preventing overheating and ensuring the reliable operation of servers, storage, and networking components. Innovative technologies, such as precision cooling systems and modular cooling solutions, enhance energy efficiency and reduce environmental impact in data center cooling practices.
What is the current size of the global data center cooling market?
The global data center cooling market is estimated to be USD 12.7 billion in 2023 and is projected to reach USD 29.6 billion by 2030, at a CAGR of 12.8%.
Who are the winners in the global data center cooling market?
Companies such as Schneider Electric (France), Fujitsu (Japan), Daikin Industries Ltd. (Japan), Hitachi Energy Ltd. (Japan), and Johnson Controls, Inc. (US) are the leading players. These players have adopted the strategies of expansions, agreements, mergers & acquisitions, partnerships, new product launches, joint ventures, investments & contracts, collaborations, and new technology & new process developments to increase their presence in the global market.
What are the key regions in the global data center cooling market?
In terms of region, the highest share was observed to be in Asia Pacific. As businesses and governments in the region invest heavily in digital transformation, widespread adoption of cloud computing services, and AI-driven applications, the demand for efficient cooling solutions that can handle the heat generated by advanced computing systems is on the rise.
What is the major type of cooling used in the global market?
The room-based cooling data center cooling market has witnessed notable growth as per value due to several factors that make it a solution for cooling high-performance computing systems. .
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The study involved four major activities in estimating the current data center cooling market size—exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and measures with industry experts across the value chain of data center cooling through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the size of the segments and sub-segments of the market.
Secondary Research
The research methodology used to estimate and forecast the access control market begins with capturing data on the revenues of key vendors in the market through secondary research. In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, Factiva, World Bank, and Industry Journals, were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; notifications by regulatory bodies; trade directories; and databases. Vendor offerings have also been taken into consideration to determine market segmentation.
Primary Research
The data center cooling market comprises several stakeholders in the supply chain, such as manufacturers, equipment manufacturers, traders, associations, and regulatory organizations. The demand side of this market is characterized by the development of various end-use industries. Various primary sources from the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of the primary respondents:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the total size of the data center cooling market. These methods were also used extensively to determine the market size of various segments. The research methodology used to estimate the market size included the following:
- The key players were identified through extensive primary and secondary research.
- The value chain and market size of the data center cooling market, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
Global Data Center Cooling Market Size: Bottom-Up Approach
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Global Data Center Cooling Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The market size was calculated globally by summing up the country-level and regional-level data.
Market Definition
The global data center cooling market encompasses solutions and technologies designed to manage and regulate the temperature within data centers, ensuring optimal performance and energy efficiency. This includes various cooling methods such as air conditioning, liquid cooling, and emerging innovations aimed at addressing the escalating heat generated by modern computing equipment. As the demand for high-performance computing continues to rise, the data center cooling market is witnessing significant growth, driven by the imperative to maintain stable operating conditions and reduce environmental impact.
Key Stakeholder
- Data center manufacturers
- Distributors and Suppliers of data center cooling.
- Associations and Industrial Bodies such as The American National Standards Institute (ANSI), The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), The National Electrical Manufacturers Association (NEMA), The Telecommunication Industry Association (TIA), The Canadian Standards Association Group (CSA Group), and Others
- NGOs, Governments, Investment Banks, Venture Capitalists, and Private Equity Firms
Report Objectives:
- To define, describe, and forecast the size of the global data center cooling market in terms of value
- To provide detailed information regarding the key factors, such as drivers, restraints, opportunities, and industry-specific challenges, influencing the growth of data center cooling market
- To analyze and forecast the size of various segments (component, solution, services, type of cooling, data center type & industry) of the data center cooling market based on five major regions—North America, Europe, Asia Pacific, Latin America, Middle East & Africa—along with key countries in each of these regions
- To analyze recent developments and competitive strategies, such as expansions, new product developments, partnerships, and acquisitions, to draw the competitive landscape of the market
- To strategically profile the key players in the market and comprehensively analyze their core competencies
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the data center cooling market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Generating Response ...
Growth opportunities and latent adjacency in Data Center Cooling Market