Data Center Cooling Market Size & Share

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Data Center Cooling Market size is expected to reach USD 220 billion by the end of 2035, expanding around 15% CAGR during the forecast period i.e., 2023 – 2035. In the year 2022, the industry size of data center cooling was USD 16 billion. The growth of the market can be attributed to the growth in a number of data centers. In the entire world, there are about 7,999 data centers. Approximately 30% of the data centers among them are situated in the US. Hence, the demand for data center cooling is estimated to increase.

Moreover, there has been growth in data generated all across the world. Global data production is predicted to reach about 462 exabytes per day by 2025. Additionally, the higher data volumes brought on by the increased use of OTT and video streaming have fuelled market growth. Further, the demand for efficient cooling systems for data centers would rise as a result of the rising amount of data produced by online streaming services such as Disney+ Hotstar, Hulu, and Netflix.

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Data Centre Cooling Market: Key Insights

Base Year	2022
Forecast Year	2023 – 2035
CAGR	~15%
Base Year Market Size	~USD 16 billion
Forecast Year Market Size	~USD 220 billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Data Center Cooling Sector: Growth Drivers and Challenges

Growth Driver

Growing Energy Consumption in Data Centers - Several of the largest data centers in the world could store tens of thousands of IT devices apiece and need more than 99 megawatts (MW) of power capacity, which is equivalent to powering about 79,999 U.S. homes. Hence, with the use of data center cooling the consumption of energy is estimated to be reduced.
Rise in Use of Internet - About 4 billion people used the Internet as of January 2023, representing approximately 63 percent of the world’s population. Increasing internet penetration is giving rise to data production as a result driving the growth of the data center cooling market in the projected time period.
Surge in Storage Capacity of Data - Only about 3% of the data generated and consumed in 2020 was preserved across the globe and held until 2021, indicating that just a small portion of this freshly created data is kept. The installed base of storage capacity is anticipated to grow, expanding at a yearly average rate of approximately 18% over the projected period from 2020 to 2025, following the significant expansion of the data volume.

Challenge

Inefficiency of Traditional Air-Cooling Method - Given their enormous power usage, data centers confront a significant challenge in reducing carbon emissions. The cooling technologies employed in data centers are one of the main causes of carbon emissions. For instance, the traditional air-cooling approach utilized in data centers produces a sizable quantity of carbon emissions. Therefore, one of the main difficulties for companies that provide cooling systems for data centers is to develop technologies or coolants that could improve cooling impact while also lowering carbon emissions and PUES. Manufacturers of data center cooling face difficulties as a result of these elements, and it is anticipated to hamper the market's growth.
High Cost of Data Center Cooling
High Initial Investment Required

Data Center Cooling Segmentation

End-User (BFSI, IT & Telecom, Manufacturing, Retail, Healthcare)

The IT & telecom segment in the data center cooling market is anticipated to garner the highest revenue of 30% by the end of 2035. Depending on the size of the business, the IT industry requires hyperscale data centers and on-premise private data storage for its operations. Also, since SaaS providers have multiplied over time, cloud storage has become more widely used. For instance, currently, there are about 29,999 or so forecast estimates, and many SaaS businesses operating worldwide.

Data Center Type (Large, Medium, Small-Scale DC)

Data center cooling market from the large-scale DC segment is anticipated to have significant growth over the projection period. A large-scale data center, also known as a hyperscale data center, is a crucial infrastructure that enables powerful and scalable applications. Large businesses with significant data processing and storage needs are frequently linked to hyperscale data centers. Moreover, large amounts of electricity are used to tunnel servers and cool systems in large-scale data centers. Hence, this factor is estimated to boost the demand for data center cooling.

Our in-depth analysis of the global market includes the following segments:

Product	Air Conditioner Precision Air Condition Chillers Air Handling Unit
Data Center Type	Large Medium Small-Scale DC
Cooling Technique	Room-Based Cooling Rack-Based Cooling Row-Based Cooling
End-User	BFSI IT & Telecom Manufacturing Retail Healthcare

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Data Center Cooling Industry- Regional Synopsis

APAC Market Forecast

The data center cooling market in the Asia Pacific region is predicted to witness the largest revenue share of 33% during the forecast period. The introduction of 5G technologies as well as cutting-edge technologies such as the big data, AL & ML, and digitalization are the factors that are driving the Asia Pacific data centers cooling market. In 2030, 5G will boost the APAC economy by more than USD 133 billion. By 2030, 5G will mostly benefit the services (42%) and manufacturing (34%) sectors of the economy thanks to use cases in smart factories, smart cities, and the smart grid.

North America Market Statistics

In the North American region, the data center cooling market is estimated to hold a noteworthy revenue share during the projection period. Given the presence of tech behemoths like Facebook, Amazon Inc., and Google Inc. in the area, new technology-based solutions are expected to be adopted more maturely. The area is home to a sizable number of data centers that are distinguished by the existence of several IT businesses, opening doors for the data center cooling solutions market in the upcoming times.

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Companies Dominating the Data Centre Cooling Landscape

Airedale International Air Conditioning Ltd.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
Asetek, Inc.
Black Box Limited
Nortek Air Solution LLC
Vertiv Group Corporation
Rittal GmBh & Co.KG
Stulz Gmbh
Johnson Controls International plc
Intel Corporation
ST Engineering Ltd.

In The News

With the introduction of cooling technology in July 2022, the defense and engineering group ST Engineering entered the market for data center cooling. This cooling technology is said to help operators in tropical climates save 20% on energy, which equates to about SGD 104 per kilowatt-hour of heat load annually.
With a USD 700 million expenditure into a new research center specializing in liquid and immersion cooling, Intel unveiled a new effort in May 2022 to address data center sustainability. Additionally, in order to encourage the adoption of the method in data centers throughout the world, it introduced the initial immersion cooling standard layout on the market.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the data center cooling market?

Ans: The surge in the storage capacity of data and the growing penetration of the internet are some of the major factors anticipated to drive the growth of the data center cooling market.

2) What would be the CAGR of the data center cooling market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the data center cooling market?

Ans: The major players in the market are Asetek, Inc., Black Box Limited, Nortek Air Solution LLC, Vertiv Group Corporation, Rittal GmBh & Co.KG, Stulz Gmbh, and others.

4) Which segment captures the largest market size in end users in the data center cooling market?

Ans: The IT & telecom segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

5) Which region will provide more business opportunities for the growth of the data center cooling market in the future?

Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.