U.S. Data Center Cooling Market - Industry Outlook and Forecast 2018-2023

U.S. DATA CENTER COOLING MARKET SIZE TO CROSS $2 BILLION BY 2023, GROWING AT A CAGR OF 5% DURING THE FORECAST PERIOD

U.S. Data Center Cooling Market Size, Share, & Trends Analysis Report by Infrastructure (Cooling System and Other Infrastructure), Technique (Air-Based and Liquid-Based), Systems (CRAC & CARH, Chiller, Towers & Dry Coolers, and Economizers & Evaporative Coolers, and Other Units), Tier Standards (Tier I and Tier II, Tier II, and Tier IV), and Region (South Eastern, South Western, Mid-Western, Western, and North Eastern US), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2018–2023

Market Overview

The growing development of colocation and hyperscale facilities with a power capacity of more than 100 MW is driving the growth of the U.S. data center cooling market. The US controls around 90% of the market in the Americas. The larger number of development projects in South-Eastern and South-Western regions particularly in Virginia and Texas in the US are the largest revenue contributors. The introduction of high-performance infrastructure and launch of rack/row cooling solutions will revolutionize the market over the next few years. The adoption of various innovative techniques such as evaporative coolers, economizers, free chillers, direct liquid, and immersion liquid cooling solutions will help leading vendors gain a larger share in the region. The growing focus on cost-efficiency, improving functionality, and sustainability of cooling systems will act as a catalyst for companies to launch pioneering product portfolios in the market.

The use of artificial intelligence (AI) will help reduce OPEX across facilities and allows prominent players to introduce multipurpose cooling systems and modular infrastructure solutions. The chilled-water based systems are the most prevalent facilities design in the American market and vendors are launching state-of-art designs to reduce the power consumption of these chiller units. 

Market Dynamics

The increasing adoption of direct liquid and liquid immersion cooling techniques will attribute to the growth of the U.S. data center cooling market. The leading operators are focusing on adopting efficient and innovative technology that reduces the power consumption and operate with PUE less than 1.30. The integration of direct liquid and liquid immersion cooling techniques enables facilities operations at a PUE of less than 1.05. The key cloud hosting facilities are also adopting these innovative solutions in the US region. The trend of implementing direct liquid and liquid immersion techniques is expected to continue to grow in the US region over next few years. For instance, Asetek is one of the prominent players offering direct cooling techniques in the US region.

U.S. DATA CENTER COOLING MARKET REPORT SCOPE

U.S. Data Center Cooling Market Segmentation

This research report includes a detailed segmentation by infrastructure, by technique, by systems, by tier standard, and by region.

Insights by Infrastructure

US data center cooling market to witness the adoption of pump systems, piping units, and valves in facilities construction activities during forecast period

The other infrastructure sector is the fastest growing segment of the market at a CAGR of close to 7% during the forecast period. The other infrastructure segment is further classified into pump systems, piping units and valves, boilers, fire protection and suppression systems, and sprinklers. The modern facilities in the market are design construction is of tier 3 and tier 4 standards with N+N redundancy configuration which in turn will boost the demand for other infrastructure components in the US region. Furthermore, the adoption of free cooling systems using evaporative coolers, free chillers, and air/water side economizers will drive the growth of this segment in the US.

Insights by Technique

Free cooling technique to help conserve energy in the U.S. data center cooling market during forecast period

The liquid-based segment dominated with largest shares in 2017 and is expected to grow at a CAGR of close to 4% during the forecast period. The implementation of chilled water systems to cool centers with on-site water storage or drawing water from a river is very popular in the market in the US. The demand for chilled water systems is expected to decrease over the next few years owing to the efforts implemented to conserve water and reduce consumption. Such efforts will boost the adoption of immersion, direct liquid, and free cooling techniques during the forecast period. The adoption of these innovative systems is expected to reduce power consumption up to 90% in the US data center facilities.

Insights by Systems

Use of multistage CRAC and CRAH units to gain traction in the U.S. data center cooling market during the forecast period

CRAC & CARH units were the largest segment in 2017 and are anticipated to grow at a CAGR of more than 4% during the forecast period. The use of CRAC units as a multistage compressor will propel the growth of this segment in the US. The implementation of CRAC and CARH units in conjunction with other units such as chillers, tower, dry coolers, and condensers will boost the demand for these systems.

Insights by Tier Standards

Demand for N+N redundancy to boost the demand for Tier III facilities during the forecast period

Tier III standard dominated the share in 2017 and is projected to grow at a CAGR of more than 3% during the forecast period. The growing demand for redundant components to support critical application in facilities will drive the growth of this segment in the US. The Tier III data centers in US have a minimum N+1 redundancy in power and cooling infrastructure. The development of colocation facilities and the use of rack cooling solutions will transform the market during the forecast period.

Insights by Region

Virginia is the leading region in the US market and is expected to contribute to the revenues during forecast period

The South Eastern region in US dominated the share in 2017 and is likely to grow at a CAGR of close to 6% during the forecast period. Leading cloud hosting providers such as Google, Facebook, Digital Realty, CyrusOne, and Raning Wire are investing in Virginia data center facilities and is driving the growth of this region. The availability of strong fiber connectivity, inexpensive power, and low tax incentives are of some of the factors that are attributing to the growth of this region in the US region.

Key Vendor Analysis

The market consists of both international and regional players that drive the level of competition in the market. The key vendors are developing new and innovative products that increase the efficiency of the facilities and help reduce energy consumption levels. The wide range of product offering, and complete infrastructure solutions offered by companies will help them attract new consumers and sustain the level of competition in the US region. The leading vendors are focusing on launching energy-efficient cooling systems that emit low carbon footprints to gain a larger share in the US.

Major Vendors

• Airedale Air Conditioning
• Rittal
• Schneider Electric
• STULZ
• Trane (Ingersoll Rand)
• Vertiv

The U.S. data center cooling market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

By Infrastructure

• Cooling System
• Other Infrastructure

By Technique

• Air-based
• Water-based

By Systems

• CRAC & CARH
• Chiller
• Towers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Systems

By Tier Standard

• Tier I and Tier II
• Tier III
• Tier IV

By Region

• South Eastern US
• South Western US
• Mid-Western US
• Western US
• North Eastern US

KEY QUESTIONS ANSWERED

1. What is the U.S. data center cooling market size and growth rate during the forecast period?
2. What are the factors impacting the growth of the U.S. data center cooling market share?
3. Which infrastructure/tier standards/region is generating the largest revenue in the U.S. region?
4. Who are the leading vendors in the U.S. data center cooling market, and what are their market shares?
5. How is the growth of air-based cooling segment affecting the growth of U.S. data center cooling market?