Global Data Centre Cooling Systems Market is anticipated to grow at a CAGR of 11.66% to be valued at USD 21037.75 Billion by 2027: Bonafide Research

Increasing demand for data centers, rising energy costs, focus on sustainability and environmental concerns, increasing heat density, government regulations, edge computing, technological advancements.

Clifton, New Jersey, April 10, 2023 (GLOBE NEWSWIRE) -- The rapid growth of data-intensive technologies such as cloud computing, big data, the Internet of Things, and artificial intelligence has led to a significant increase in the demand for data centers. Cooling is a critical component of data center operations, and as energy costs continue to rise, there is mounting pressure to adopt energy-efficient cooling solutions. This can help reduce operational costs and minimize the environmental impact of data center operations and emphasize sustainability and green initiatives. Edge computing is gaining popularity due to the need for real-time data processing in applications such as IoT, autonomous vehicles, and smart cities. Advancements in cooling technologies such as liquid cooling, direct-to-chip cooling, and evaporative cooling have enabled more efficient and effective cooling of data centers. These technologies can help improve energy efficiency, reduce operating costs, and increase the overall reliability and performance of data center cooling systems. As data center operators strive to stay at the forefront of technological advancements, they are driving the demand for advanced cooling solutions.

Key Takeaways:

  • Cooling solutions that are energy-efficient, utilize renewable energy sources and have a lower carbon footprint has led to the adoption of innovative cooling technologies such as liquid cooling, direct-to-chip cooling, and economizer.
  • As data centers become more dense and compact, with higher heat loads generated by modern IT equipment, traditional cooling methods may not be sufficient to dissipate the heat effectively. This has led to the need for advanced cooling solutions that can handle high heat densities, such as liquid cooling and immersive cooling, to ensure efficient and reliable data center operations.
  • Air conditioning and liquid cooling systems are major solutions for data center cooling with nearly 50% of the total market share. However, liquid cooling can provide more efficient and targeted cooling than air-based cooling methods, as liquids have a higher heat capacity and thermal conductivity than air.
  • With the increasing complexity of data center cooling systems, the focus on energy efficiency and sustainability, the need for downtime prevention, and the requirement for specialized expertise and vendor support, maintenance, and support services for data center cooling systems are expected to rise in the future years at 17.41%.
  • Row-based cooling systems are expected to be used more in data center cooling systems in the coming years at a growth rate of 16.69%, due to their increased efficiency, flexibility, scalability, reduced space requirements, and cost-effectiveness.

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One of the challenges in the data center cooling market is to develop and implement highly energy-efficient cooling solutions that can effectively dissipate heat generated by IT equipment. However, achieving high energy efficiency in data center cooling can be complex and require sophisticated technologies, designs, and strategies to optimize cooling performance. Increasing awareness about the environmental impact has led to concerns about carbon emissions, water usage, and other factors. Cooling high-density racks and cabinets can be challenging, as traditional cooling methods may not be effective in dissipating the heat generated by densely packed servers and other IT equipment. Data centers are often constrained by space limitations, especially in urban areas where real estate is expensive. The scalability of cooling systems is a challenge in the data center cooling market, as data center operators need flexible and modular cooling solutions that can adapt to changing requirements without disrupting ongoing operations.

Liquid cooling is gaining popularity as it involves immersing IT equipment or components in a dielectric liquid or circulating liquid directly to cool the heat-generating components. It can provide more efficient and targeted cooling and is particularly effective in high-density racks and cabinets. Free cooling, also known as economizer cooling, is another growing trend in data center cooling. It utilizes the outside air to cool data centers, reducing the reliance on mechanical cooling systems. Free cooling methods can include air-side economizers, water-side economizers, or direct evaporative cooling, depending on the local climate and environmental conditions. AI and ML technologies can analyze vast amounts of data, including temperature, humidity, airflow, and equipment load data, and make real-time adjustments to cooling systems. They can also enable predictive maintenance & services for dynamic cooling control, and advanced analytics, leading to more efficient and effective data center cooling operations. The growing demand for data storage and processing, economies of scale, increased focus on cloud computing, data sovereignty and compliance requirements, and scalability and agility are some of the reasons why large data centers are expected to be built in greater numbers in the coming years. They offer advanced capabilities, cost advantages, and flexibility to meet the evolving needs of businesses in the digital era.

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Both the IT & telecom industry and healthcare industry are projected to experience significant growth at 13.27% and 12.43% respectively, in data generation and processing in the coming years. This is driven by advancements in technology, increasing digitization of processes, and growing demand for data-driven insights. Data centers are essential for hosting and managing the vast amounts of data generated and processed by the IT & telecom industry. This includes data from various sources, such as data centers that support cloud computing, IoT devices, artificial intelligence (AI) and machine learning applications, and other data-intensive workloads. The healthcare industry is another sector that generates and processes large volumes of data, including electronic health records (EHRs), medical imaging, patient monitoring, research data, and other critical healthcare information. Healthcare organizations rely on data centers to securely store, process, and manage this sensitive data. Data center cooling is essential to maintain the integrity and reliability of IT equipment that supports critical healthcare applications and services.

The North American data center cooling industry is a mature market that has been around for several decades and by 2027 exceed USD 9000 Million. This has given companies in the region a head start in terms of innovation and development of new cooling technologies. The region is home to many leading technology companies that are continually pushing the boundaries. The U.S. Environmental Protection Agency (EPA) has established energy efficiency standards for data centers, which have helped to drive innovation in cooling technology. This has led to the development of specialized cooling systems that are designed to meet the specific needs of large data centers. The region boasts of skilled workforce, which has helped to drive innovation and the development of new cooling technologies.

Many countries in Europe have made significant strides in adopting renewable energy sources, such as wind and solar power, which can help to reduce the environmental impact of data centers. Germany & UK account for nearly 54% of revenue share in the region. Europe has some of the most stringent regulations and standards for data center energy efficiency. For example, the European Union's Code of Conduct for Data Centres has guidelines for improving energy efficiency in data centers, including cooling systems. European governments and businesses are investing heavily in the research and development of innovative cooling technologies. This has led to the development of new and highly efficient cooling solutions, such as liquid cooling, which can help to reduce the energy consumption of data centers.

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The Asia Pacific region is an emerging market for data centers and is expected to grow at a CAGR of 12.68%. As a result, the development and adoption of innovative cooling technologies have been slower. Many countries in the Asia Pacific region have inadequate or unreliable energy infrastructure, which can limit the development and adoption of energy-intensive cooling solutions. The region has fewer regulations and standards for data center energy efficiency compared to North America and Europe. This can lead to a lack of incentives for companies to invest in energy-efficient cooling solutions. Many companies in the Asia Pacific region prioritize investments in other areas, such as networking and computing infrastructure, over cooling technologies.

The data center market in Latin America is still in its early stages of development with only 3.88% revenue in 2021. Compared to other regions, Latin America has a lower level of investment in data centers. There are no specific regulations or standards for energy efficiency in data centers in Latin America, which can limit the incentives for companies to invest in innovative cooling solutions. The energy infrastructure which can make it difficult to power energy-intensive cooling solutions and the shortage of skilled labor force is major limiting factor for the growth of this industry. Furthermore, Brazil is investing in developing its data center industries, which could help to drive innovation and growth in the cooling sector.

The hot and dry climate in many parts of the Middle East & Africa region presents unique challenges for data center cooling. This is driving innovation and growth in the industry. The United Arab Emirates is investing in renewable energy sources, such as solar power, which can help power energy-efficient cooling solutions. Additionally, the data center market is driven by the increase in cloud computing and the adoption of digital technologies across various industries. The MEA region has fewer regulations and standards for data center energy efficiency which will drive the market to exceed USD 870 Million by 2027. However, the United Arab Emirates is developing regulations to promote energy efficiency in data centers. With the investment in infrastructure and the adoption of renewable energy sources, the industry is well-positioned for continued growth and development in the future.

Considered in the Report

  •   Geography: Global
  •   Historical Year: 2016
  •   Base year: 2021
  •   Estimated year: 2022
  •   Forecast year: 2027

Table of Content

1.     Executive Summary
2.     Report Methodology
3.     Market Structure
3.1.  Market Considerate
3.2.  Market Definition
4.     Economic /Demographic Snapshot
5.     Global Data Center Cooling Market Outlook
5.1.  Market Size by Value
5.2.  Market Share
5.2.1.     By Region
5.2.2.     By Country
5.2.3.     By Company
5.2.4.     By Industry Vertical
5.2.5.     By Cooling Type
5.2.6.     By Data Center Type
5.3.  Global Data Center Cooling Solution Market Outlook
5.3.1.     Market Size by Value
5.3.2.     Market Share by Product
5.4.  Global Data Center Cooling Services Market Outlook
5.4.1.     Market Size by Value
5.4.2.     Market Share by Type
6.     North America Data Center Cooling Market Outlook
6.1.  Market Size by Value
6.2.  Market Share
6.2.1.     By Country
6.2.2.     By Industry Vertical
6.2.3.     By Cooling Type
6.3.  North America Data Center Cooling Solution Market Outlook
6.3.1.     Market Size by Value
6.3.2.     Market Share by Product
6.4.  North America Data Center Cooling Services Market Outlook
6.4.1.     Market Size by Value
6.4.2.     Market Share by Type
6.5.  US Data Center Cooling Market Outlook
6.5.1.     Market Size by Value
6.5.2.     Data Center Cooling Solution Market Share by Product
6.5.3.     Data Center Cooling Services Market Share by Type

TOC continued….

Market Segmentation Details
By Component
By Solutions
  • Air Conditioning
  • Chilling Units
  • Cooling Towers
  • Economizer Systems
  • Liquid Cooling Systems
  • Control Systems
  • Others
By Services
  • Consulting
  • Installation & Deployment
  • Maintenance & Support
By Type of Cooling
  • Room-based Cooling
  • Row-Based Cooling
  • Rack-based Cooling
By Data Center Type
  • Large Data Center
  • Enterprise Data Center
  • Mid-Size Data Center
By Industry
  • BFSI
  • IT & Telecom
  • Research & Academic
  • Government & Defense
  • Retail
  • Energy
  • Manufacturing
  • Healthcare
  • Others
By Region
By Country
  • US, Canada, Mexico
  • United Kingdom, Germany, France, Italy, Poland, Russia
  • China, India, Japan, South Korea, Australia
  • Brazil, Chile, Argentina,
  • Saudi Arabia, UAE, South Africa,
Company profiles
  • Vertiv Holdings Co.
  • Schneider Electric SE
  • StulzGmbh
  • Mitsubishi Electric Corporation
  • Daikin Industries Limited
  • Rittal GmbH & Co. KG
  • Nortek Air Solutions, LLC
  • Johnson Controls International Plc
  • Munters Group AB
  • Black Box Corporation
  • Airedale International Air Conditioning Limited
  • Asetek, Inc.
  • Coolcentric
  • Degree Controls, Inc.
  • Condair Group AG
  • Chilldyne Inc.
  • LiquidCool Solutions
  • CoolIT Systems
  • Delta Electronics
  • Alfa Laval Corporate AB
  • Shenzhen Envicool Technology Co., Ltd
  • Shanghai Shenglin M&E Technology Co., Ltd
  • GRC (Green Revolution Cooling)
  • Aspen Systems
  • Fujitsu Limited
Other Market Details
  • Key Drivers & Key Challenges,
  • Market Trends and Developments,
  • Strategic Recommendations

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