APAC Data Center Cooling Market Landscape 2024-2029

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16 countries

62 company

5 segments

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THE APAC DATA CENTER COOLING MARKET SIZE WITNESSED INVESTMENTS OF USD 3.21 BILLION IN 2023 AND WILL WITNESS INVESTMENTS OF USD 5.73 BILLION BY 2029, GROWING AT A CAGR OF 10.12% DURING THE FORECAST PERIOD.

The APAC Data Center Cooling Market Size, Share, & Trends Analysis By

  1. Infrastructure: Cooling Systems and Other Mechanical Infrastructure
  2. Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers, and Dry Coolers, Economizers & Evaporative Coolers, and Other Cooling Units
  3. Cooling Technique: Air-based Cooling Technique and Liquid-based Cooling Technique
  4. Tier Standards: Tier I & II, Tier III, and Tier IV
  5. Geography: APAC (China, Hong Kong, Australia, New Zealand, India, Japan, South Korea, Taiwan, and Rest of APAC) and Southeast Asia (Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Other Southeast Asian Countries)

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2024–2029.

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APAC DATA CENTER COOLING MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
MARKET SIZE – INVESTMENT (2029)USD 5.73 Billion
MARKET SIZE – INVESTMENT (2023)USD 3.21 Billion
CAGR - INVESTMENT (2023-2029)10.12%
HISTORIC YEAR2020-2022
BASE YEAR2023
FORECAST YEAR2024-2029
SEGMENTS BYInfrastructure, Cooling Systems, Cooling Technique, Tier Standards, and Geography
GEOGRAPHIC ANALYSISAPAC and Southeast Asia
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MARKET OVERVIEW

The APAC data center cooling market size by investment was valued at USD 3.21 billion in 2023 and is expected to reach USD 5.73 billion by 2029, growing at a CAGR of 10.12% during the forecast period. With a substantial increase in data center investments within the region propelled by a rise in the number of internet users, a heightened presence on social media platforms, widespread smartphone usage, an increased embrace of cloud services, and a growing necessity for enterprises to shift from server room setups to more advanced data center environments. Consequently, this surge in demand is expected to drive the establishment and expansion of regional data centers and support market growth. Furthermore, the APAC data center cooling market stands out globally for its remarkable growth. Key data center markets within the region include China, Singapore, South Korea, Japan, Australia, and Hong Kong.

KEY TRENDS

Rising Adoption of AI will drive demand for Advanced Cooling Technologies

  1. As the use of AI applications continues to grow in data centers, power distribution complexity will increase. AI adoption will increase the demand for cooling systems because data centers constantly increase their rack power density, increasing the load of data centers.
  2. AI, IoT, and ML consume a lot of data, producing heat in the data center. Data centers have adopted the latest cooling technology, which is less cost-effective and eco-friendly.
  3. The demand for the latest cooling technology will increase rapidly in two to three years, and many data centers are using traditional cooling methods to convert to the latest cooling technologies because of AI.

Growing Rack Power Density

  1. As a data center adopts advanced technologies like AI and ML, power demands per rack can reach 20 kW to 80 kW per rack and generate substantial heat. Effective cooling is crucial to prevent equipment failures and downtime, but it consumes significant energy. Given rising energy costs and environmental regulations, there is a growing need for more energy-efficient cooling solutions.
  2. Liquid cooling technology has become a highly effective solution to overcome the heat challenge data centers face. According to the Uptime Institute, advanced liquid cooling is more cost-effective and efficient when the rack density goes beyond 20 kW to 25 kW.
  3. Cloud service providers such as Amazon Web Services (AWS) and major internet companies such as Meta often operate at higher power densities, ranging from 10 kW to 14 kW per rack. The power density can surpass 20 kW per rack for newer high-density AI workloads.
  4. In January 2024, STACK Infrastructure announced its plan to enhance its AI data center capabilities better to accommodate the growing needs of ML and heavy workloads. The company intends to support high-density workloads using a closed-loop water cooling system. It plans to offer customizable solutions, enabling support for up to 50 kW with rear door heat exchangers and up to 100 kW using direct-to-chip liquid-based cooling. In addition, it aims to facilitate a power rating of 300 kW or higher per rack with immersion cooling technology in the future.

Innovations in Data Center Cooling Techniques

  1. As computing power requirements and performance expectations continue to rise, driven by advances in technologies, including Artificial Intelligence (AI), the Internet of Things (IoT), and Machine Learning (ML), the demand for power usage will increase; this will result in elevated temperatures in both data center infrastructure and IT equipment.
  2. The growth of liquid-based cooling techniques is higher among direct liquid-based cooling and immersion cooling solutions. The adoption of chilled water systems is likely to decline over the next few years due to the growing need for cooling solutions that do not require water to reduce the water consumption in the data centers. Data center operators also constantly install on-site water tanks, water treatment plants, and recycling plants to reduce water consumption.

Adoption of Liquid-Cooling Techniques

  1. In December 2023, Equinix announced plans to expand its support for liquid-based cooling technology, including direct-to-chip cooling, to over 100 International Business Exchange (IBX) data centers across more than 45 metro areas globally. Locations set to support direct-to-chip liquid-based cooling include London, Silicon Valley, Singapore, and Washington DC.
  2. In August 2023, Digital Realty launched a high-density rack that supports up to 70 kW per rack over 28 locations across North America, EMEA, and APAC. The company said this is possible due to the latest technologies in cooling systems, such as Air-Assisted Liquid Cooling (AALC) technologies.

SEGMENTATION INSIGHTS

  1. The APAC region mostly has a warm climate, and data centers that operate in warm climatic conditions adopt free-cooling chillers with smart technologies since they enable operations based on outside temperatures.
  2. The adoption of chiller units is expected to be high in India, Southeast Asia, and the rest of APAC. Multiple data centers are considering adopting free-cooling chillers in China, Japan, South Korea, Australia, and New Zealand. This is because most operators slowly move toward evaporative coolers, considering the PUE benefits these systems offer in terms of operation.
  3. A few data centers have been developed in APAC to benefit from free cooling techniques. Hence, the adoption of indirect evaporative cooling systems is expected to increase in China, Japan, South Korea, Australia, and New Zealand during the forecast period. The modern offerings of vendors include a combination of systems that use cold air outside during winter.
  4. A few data centers have been developed in APAC to benefit from free cooling techniques. Hence, the adoption of indirect evaporative cooling systems is expected to increase in China, Japan, South Korea, Australia, and New Zealand during the forecast period. The modern offering of vendors in the APAC data center cooling market includes a combination of systems that use cold air outside during winter.
  5. The growth of liquid-based cooling techniques is higher among direct liquid-based cooling and immersion cooling solutions; the adoption of chilled water systems will likely decline over the next few years due to the growing need for cooling solutions that do not require water to reduce water consumption in data centers.

GEOGRAPHICAL ANALYSIS

  1. China held the largest APAC data center cooling market share in terms of investment, with around 45% share in 2023, followed by Australia, India, Hong Kong, South Korea, New Zealand, and the rest of the APAC countries.
  2. In 2023, there was a substantial increase in data center investments within the region. This surge was propelled by a rise in internet users, a heightened presence on social media platforms, widespread smartphone usage, an increased embrace of cloud services, and a growing necessity for enterprises to shift from server room setups to more advanced data center environments.
  3. Singapore stands out as a key hub for data center investments in Southeast Asia, thanks to the significant presence of both local and international data center operators.
  4. The increasing reliance on digital services, the growth of content providers, expanding internet penetration, and the widespread adoption of cloud services are anticipated to fuel the demand for data generation, data traffic, and robust storage and connectivity solutions. Consequently, this surge in demand is expected to drive the establishment and expansion of data centers and propel the APAC data center cooling market growth.

VENDOR LANDSCAPE

  1. The APAC data center cooling market hosts a variety of active vendors offering different types of solutions. Those vendors that provide innovative and advanced technologies stand a better chance of securing a larger market share throughout the forecast period.
  2. Some of the prominent cooling infrastructure providers operating in the APAC data center cooling market include 4energy,3M, Asetek, Black Box, Carrier, Condair, Daikin Applied, Delta Electronics, Johnson Controls, Mitsubishi Electric, STULZ, Schneider Electric Rittal, Vertiv, and others.
  3. In the APAC data center cooling market, many colocation operators are adopting advanced cooling technologies in their data centers. This new technology involves submerging computer servers in a special liquid that helps keep them cool. This will increase opportunities for vendors offering advanced cooling solutions to increase their revenue share in the APAC data center cooling industry. For instance, in May 2024, LG Uplus announced that it had developed a new data center in Paju, South Korea. The company also announced that it is equipped with an immersion cooling system.
  4. In August 2023, Digital Realty launched a high-density rack that supports up to 70 kW per rack over 28 locations across North America, EMEA, and APAC. The company said this is possible due to the latest technologies in cooling systems, such as Air-Assisted Liquid Cooling (AALC) technologies.
  5. In January 2023, NTT DATA deployed its first liquid immersion cooling and direct contact liquid-based cooling technology in India in the Navi Mumbai Data Center.
  6. Continued innovation in cooling technologies in the APAC data center cooling market, such as direct-to-chip and liquid immersion cooling technologies, is essential for meeting the demands of the data center industry. Many colocations and hyperscale operators are implementing these liquid cooling technologies in their data centers, which helps them save money by using less energy and lowering their electricity bills.

Frequently Asked Questions

How big is the APAC data center cooling market?

The APAC data center cooling market size was valued at USD 3.21 billion in 2023 and is expected to reach USD 5.73 billion by 2029.

What is the growth rate of the APAC data center cooling market?

The APAC data center cooling market share by investment is growing at a CAGR of 10.12% during the forecast period.

Which country holds the most significant APAC data center cooling market share?

China held the most significant share of the APAC data center cooling market in 2023.

The APAC data center cooling market by investment is projected to surpass USD 5.73 billion by 2029, growing at a CAGR of 10.12% from 2023 to 2029.

The following factors are likely to contribute to the growth of the APAC data center cooling market during the forecast period:

  1. Adoption of Cloud-Based Services to Drive Data Center Market
  2. Big Data & IoT Drive Data Center Investments
  3. Growth in Data Centers Targeting PUE<1.4

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the APAC data center cooling market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the industry.

The report includes the investment in the following areas:

Segmentation by Infrastructure

  1. Cooling Systems
  2. Other Mechanical Infrastructure

Segmentation by Cooling Systems

  1. CRAC & CRAH Units
  2. Chiller Units
  3. Cooling Towers, Condensers, and Dry Coolers
  4. Economizers & Evaporative Coolers
  5. Other Cooling Units

Segmentation by Cooling Technique

  1. Air-based Cooling Technique
  2. Liquid-based Cooling Technique

Segmentation by Tier Standards 

  1. Tier I & II
  2. Tier III
  3. Tier IV

Segmentation by Geography

  1. APAC
  2. China
  3. Hong Kong
  4. Australia
  5. New Zealand
  6. India
  7. Japan
  8. South Korea
  9. Taiwan
  10. Rest of APAC
  11. Southeast Asia
  12. Singapore
  13. Indonesia
  14. Malaysia
  15. Thailand
  16. Philippines
  17. Vietnam
  18. Other Southeast Asian Countries

VENDORS LANDSCAPE

  1. Cooling Infrastructure Providers
  2. 3M
  3. 4Energy
  4. Aermac
  5. Airedale
  6. AIRSYS
  7. Alfa Laval
  8. Asetek
  9. Austin Hughes
  10. Black Box
  11. Carrier
  12. CITEC International
  13. ClimateWorx International
  14. Condair
  15. Cooler Master
  16. CoolIT Systems
  17. Colt International
  18. CONTEG
  19. Daikin Applied
  20. Degree Controls
  21. Delta Electronics
  22. Eaton
  23. ebm-papst
  24. EcoColling
  25. Envicool
  26. Excool
  27. FläktGroup
  28. Fujitsu
  29. Fuji Electric
  30. Green Revolution Cooling
  31. Huawei
  32. Iceotope Technologies
  33. Johnson Controls
  34. Kelvion
  35. Kyoto Cooling
  36. Legrand
  37. Lennox International
  38. LiquidCool Solutions
  39. LiquidStack
  40. Mitsubishi Electric
  41. Motivair
  42. Munters
  43. Nortek Air Solutions
  44. nVent
  45. Prasa
  46. Renovo Zhuhai
  47. Rittal
  48. Schneider Electric
  49. Shanghai Shenglin M&E Technology
  50. Siemens
  51. SPX Cooling Technologies
  52. Stellar Energy
  53. STULZ
  54. Submer
  55. Swegon
  56. SWEP
  57. Systecon
  58. Systemair
  59. Trane
  60. Upsite Technologies
  61. Vertiv
  62. Wakefield Thermal

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1. ABOUT ARIZTON

2. ABOUT OUR DATA CENTER CAPABILITIES

3. WHAT’S INCLUDED

4. SEGMENTS INCLUDED

5. RESEARCH METHODOLOGY

6. MARKET AT GLANCE

7. PREMIUM INSIGHTS

8. INVESTMENT OPPORTUNITIES

8.1. INVESTMENT: MARKET SIZE & FORECAST

9. MARKET DYNAMICS

9.1. MARKET OPPORTUNITIES & TRENDS

9.2. MARKET GROWTH ENABLERS

9.3. MARKET RESTRAINTS

10. MARKET SEGMENTATION

11. MARKET SEGMENTATION BY INFRASTRUCTURE

11.1. COOLING SYSTEMS

11.2. OTHER MECHANICAL INFRASTRUCTURE

12. MARKET SEGMENTATION BY COOLING SYSTEMS

12.1. CRAC & CRAH UNITS

12.2. CHILLER UNITS

12.3. COOLING TOWERS, CONDENSERS, & DRY COOLERS

12.4. ECONOMIZERS & EVAPORATIVE COOLERS

12.5. OTHER COOLING UNITS

13. MARKET SEGMENTATION BY COOLING TECHNIQUE

13.1. AIR-BASED COOLING

13.2. LIQUID-BASED COOLING

14. MARKET SEGMENTATION BY TIER STANDARDS

14.1. TIER I & II

14.2. TIER III

14.3. TIER IV

15. GEOGRAPHY SEGMENTATION

16. APAC

16.1. MARKET SNAPSHOT & KEY HIGHLIGHTS

16.2. DATA CENTER COOLING MARKET BY INVESTMENT

16.3. DATA CENTER COOLING MARKET BY INFRASTRUCTURE

17. CHINA

17.1. KEY INVESTORS & INVESTMENTS

17.2. DATA CENTER COOLING MARKET BY INVESTMENT

17.3. DATA CENTER COOLING MARKET BY INFRASTRUCTURE

18. HONG KONG

18.1. KEY INVESTORS & INVESTMENTS

18.2. DATA CENTER COOLING MARKET BY INVESTMENT

18.3. DATA CENTER COOLING MARKET BY INFRASTRUCTURE

19. AUSTRALIA

19.1. KEY INVESTORS & INVESTMENTS

19.2. MARKET BY INVESTMENT

19.3. MARKET BY INFRASTRUCTURE

20. NEW ZEALAND

20.1. KEY INVESTORS & INVESTMENTS

20.2. MARKET BY INVESTMENT

20.3. MARKET BY INFRASTRUCTURE

21. JAPAN

21.1. KEY INVESTORS & INVESTMENTS

21.2. MARKET BY INVESTMENT

21.3. MARKET BY INFRASTRUCTURE

22. INDIA

22.1. KEY INVESTORS & INVESTMENTS

22.2. MARKET BY INVESTMENT

22.3. MARKET BY INFRASTRUCTURE

23. SOUTH KOREA

23.1. KEY INVESTORS & INVESTMENTS

23.2. MARKET BY INVESTMENT

23.3. MARKET BY INFRASTRUCTURE

24. TAIWAN

24.1. KEY INVESTORS & INVESTMENTS

24.2. MARKET BY INVESTMENT

24.3. MARKET BY INFRASTRUCTURE

25. REST OF APAC

25.1. KEY INVESTORS & INVESTMENTS

25.2. MARKET BY INVESTMENT

25.3. MARKET BY INFRASTRUCTURE

26. SOUTHEAST ASIA

26.1. MARKET SNAPSHOT & KEY HIGHLIGHTS

26.2. DATA CENTER COOLING MARKET BY INVESTMENT

26.3. DATA CENTER COOLING MARKET BY INFRASTRUCTURE

27. SINGAPORE

27.1. KEY INVESTORS & INVESTMENTS

27.2. MARKET BY INVESTMENT

27.3. MARKET BY INFRASTRUCTURE

28. INDONESIA

28.1. KEY INVESTORS & INVESTMENTS

28.2. MARKET BY INVESTMENT

28.3. MARKET BY INFRASTRUCTURE

29. MALAYSIA

29.1. KEY INVESTORS & INVESTMENTS

29.2. MARKET BY INVESTMENT

29.3. MARKET BY INFRASTRUCTURE

30. THAILAND

30.1. KEY INVESTORS & INVESTMENTS

30.2. MARKET BY INVESTMENT

30.3. MARKET BY INFRASTRUCTURE

31. PHILIPPINES

31.1. KEY INVESTORS & INVESTMENTS

31.2. MARKET BY INVESTMENT

31.3. MARKET BY INFRASTRUCTURE

32. VIETNAM

32.1. KEY INVESTORS & INVESTMENTS

32.2. MARKET BY INVESTMENT

32.3. MARKET BY INFRASTRUCTURE

33. OTHER SOUTHEAST ASIAN COUNTRIES

33.1. KEY INVESTORS & INVESTMENTS

33.2. MARKET BY INVESTMENT

33.3. MARKET BY INFRASTRUCTURE

34. MARKET PARTICIPANTS

34.1. COOLING INFRASTRUCTURE PROVIDERS

35. QUANTITATIVE SUMMARY

36. APPENDIX

36.1. ABBREVIATIONS

36.2. DEFINITIONS

36.3. SEGMENTAL COVERAGE

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Frequently Asked Questions

How big is the APAC data center cooling market?

The APAC data center cooling market size was valued at USD 3.21 billion in 2023 and is expected to reach USD 5.73 billion by 2029.

What is the growth rate of the APAC data center cooling market?

The APAC data center cooling market share by investment is growing at a CAGR of 10.12% during the forecast period.

Which country holds the most significant APAC data center cooling market share?

China held the most significant share of the APAC data center cooling market in 2023.