Data Center Refrigerant Industry - Regional Synopsis
North America Market Analysis
North America industry is predicted to account for largest revenue share of 37.1% by 2037. The swell of this regional industry is propelled by technological development. Government authorities are also contributing to innovative energy-efficient cooling technologies for data centers. In December 2023, NREL participated in making efforts of USD 40 million to enhance data center cooling efficiency. The research facility plans to develop COOLERSHIPS, reducing the CO2 footprint in data processing systems. The new generation cooling technology holds the ability to reduce energy expenditure in these institutions by 5%.
The U.S. is augmenting the data center refrigerant market with its significant growth in the data management industry. According to the report published by NTIA, in November 2024, the country is home to more than 5000 data centers. The demand is predicted to increase by 9% through 2030. The boom in this industry is inspiring companies to develop new technologies to improve the performance of cooling systems. For instance, in July 2024, Airedale by Modine launched Cooling System Optimizer in the U.S. to integrate intelligent control in chilled water systems. The innovations are supporting the initiative to upgrade refrigerants, delivering optimized energy utilization.
Canada is also growing at a notable rate to lead the data center refrigerant market by the end of 2037. Policies, favorable taxation, and subsidies issued by the government of America have influenced the industry to succeed in global competition. The American Innovation and Manufacturing Act, issued in 2020, restricted the usage of HFC. According to the law, the allowed production and consumption of HFC must be reduced by 30-60% in 2024. These regulations are not only limiting the greenhouse effect but also broadening the scope of sustainable solutions. Additionally, availing alternative options to obtain regulatory compliance.
APAC Market Statistics
The Asia Pacific data center refrigerant market is also growing to generate a large revenue in upcoming years. Rapid urbanization and digitalization are surging demand for technologically advanced cooling systems. Japan, India, and other developing countries are individually driving the focus on low-carbon transformation. In May 2024, the ASEAN Centre for Energy and Huawei released a plan to build a next-generation data center facility. The plan further proposed adopting a high-temperature chilled fan wall solution to improve cooling systems. Private and public governing bodies are also collaborating to reduce PUE and carbon emissions, creating opportunities for innovation.
India is creating lucrative investment opportunities for the data center refrigerant market due to increasing demand for data storage and processing. The proliferation of digital services, cloud computing, and big data analytics is driving the need for more data centers. According to an IBEF report published in June 2023, India’s data center industry accounted for USD 4.4 billion in 2020. The push toward sustainability is increasing the demand for alternative refrigerants. Enhanced efficiency of cooling systems is helping data centers to reduce operational costs, alluring the technological advancements for market expansion.
China is focusing on the expansion of cloud services to support the trend of developing domestic connectivity and communication networks. This further pushes the need for efficient data management, establishing the scope for data centers. Thus, the demand is enlarging for the data center refrigerant market. Environmental commitments, published by governments are forcing the transition to a new technology for data centers. The country is considering it as an opportunity to outstretch its product reach for less carbon emission. Additionally, gaining traction for the production of environment and budget-friendly cooling systems.
