The global data center cooling market size is dominated by the US. The US is one of the largest markets for data centers with more than 135 facilities that were opened or under construction in 2019, expected to be operational by June 2020. The investment in the data center cooling segment accounts for 15–20% of the overall investment. Cooling systems and IT infrastructures are the predominant consumers of power in data centers.
Data center cooling trends adopted by service operators are innovative solutions, which aim to enhance the operational efficiency of facilities, reduce power consumption, and decrease carbon emissions. A major boost to the market growth is the increase in the number of data centers construction in Latin America, the Middle East and Africa, and Southeast Asia.
The spread of COVID-19 has affected major data center operations in Europe, Asia, and North America partially in the Middle East, Africa, and Latin America. Several facilities are affected due to the stoppage of construction and supply chain related challenges. Around 60 projects were scheduled to open by Q1 2020, and the remaining 40 projects were expected to be operational by Q2 2020. The COVID-19 pandemic is likely to affect a minimum of half of these projects during this period.
DATA CENTER COOLING MARKET SEGMENTATION
This research report includes detailed market segmentation by infrastructure, technique, systems, tier standards, and geography.
INSIGHTS BY INFRASTRUCTURE
The cooling segment is expected to reach a revenue share of over $6 billion by 2025.
The application of cooling systems depends on IT loads, system capacities, expenditure, and future requirements. The investment is expected to be about 15–20%, depending on the facility design and IT infrastructure. Data center operators are looking for efficient solutions to bring down CAPEX and OPEX, reduce space, and decrease the power consumption of cooling units.
The redundancy of other infrastructure implementation is likely to be in the N+N configuration. A few facilities are likely to adopt 2N redundancy piping to avoid operational failures. The use of chilled water is expected to decline compared to systems that use both outside air and water to cool. This includes free cooling systems using evaporative coolers, free chillers, and air/waterside economizers that will continue to grow along with other infrastructure.
INSIGHTS BY SYSTEMS
The CRAC & CRAH segment is likely to grow at a CAGR of over 2% during the period 2019–2025
The market for CRAC & CRAH units will continue to grow among data centers that use DX or chilled-water solutions. The development of hyperscale and large data centers is likely to adopt 2N CRAC or CRAH units. CRAC and CRAH units will continue to be the largest revenue contributor in the market.
The US market will witness the adoption of modular in-rack cooling solutions during the forecast period, dominated by hyperscale facility deployment. In Europe, colocation service providers are continuously adopting a high-efficient cooling system to operate their facilities at low PUE. The market has witnessed an increase in the adoption of free chillers/adiabatic systems. The trend is likely to continue with an increase in investment from colocation service providers during the forecast period.
INSIGHTS BY TECHNIQUE
The air-based cooling technique segment is expected to achieve an incremental growth over $860 million by 2025
The use of chilled water systems is highly prevalent in Southeast Asia, the Middle East, and Africa and parts of APAC. The operators in the US, Europe, Nordic, China, Australia, New Zealand, Canada, and Japan are mainly using hybrid systems with minimal compressor support during peak summers and free data center cooling solutions without the need for a compressor. Innovations in the free cooling space will continue to grow in the market during the forecast period.
The growth of liquid cooling solutions techniques is higher among immersion and direct liquid cooling systems. The adoption of chilled water systems is likely to decline over the next few years. This decline is due to the growing need for cooling solutions. Facility operators are constantly installing on-site water tanks, water treatment, and recycling plants to reduce water consumption.
Chilled water solutions are achieved using chillers such as traditional chillers and free chillers. The adoption of free chillers is likely to increase due to a reduction in power consumption by these systems during peak winter, facilitating the use of outside air to cool the water.
INSIGHTS BY TIER STANDARDS
The Tier III data centers segment is projected to grow at the highest CAGR during the forecast period
Across the world, there are over 350 facilities in the Tier III category. This trend is likely to continue during the forecast period, with several operators expected to move to the Tier IV category based on the growth in the rack power density and critical applications. North America is the most dominating region with Tier III projects followed by Western Europe and Asia. The data center market in India 19 witnessed continuous investment in cloud adoption and big data analytics.
Most new facilities are designed to be of Tier III standards with a minimum of N+1 redundancy. The facilities can also be reconfigured with up to 2N+1 redundancy with the incorporation of flexible designs. Tier IV data centers are developed as modular facilities. They generate more revenue for the market, with focused investment on highly efficient cooling systems. Increased investments from hyperscale data center service providers are expected to be increasing demand for data center Tier IV market during the forecast period.
INSIGHTS BY GEOGRAPHY
North America data center cooling market is likely to reach a market size of over $3.5 billion by 2025
The North American data center cooling market is expected to reach over $3.5 billion by 2025. The region has always been a strong driver for the data center market growth, with increased construction of hyperscale facilities with over 20 MW of power capacity. The market has witnessed an increase in the investment of Tier III facilities. Most Tier III facilities in the US are configuring 2N redundancy cooling systems.
North America has witnessed the construction of Tier IV facilities across multiple cities. The data center infrastructures has evolved significantly in the past decade because of the need to reduce OPEX, increase efficiency, and decrease carbon emissions.
The market witnessed strong growth for cooling systems, evaporative coolers, and free chillers in the past years. The increasing procurement of AI-based infrastructure solutions that are growing the average rack power density around 13–15 kW will be among the major driving factors for the rack-based and row-based cooling solutions. The deployment of 5G across the region during the forecast period will result in strong data growth and application workloads. Thus, resulting in demand for high-performance computing infrastructure procurement.
KEY VENDOR ANALYSIS
The data center cooling market comprises of global and local providers. There are several infrastructure providers in the market offerings specific products or a complete range of infrastructure solutions for data centers. Over the period, the growing consumption of electricity by data center cooling units has led to multiple innovations.
Innovations across infrastructure have led to the development of new products that have increased the efficiency of operations by 90% and reduce OPEX by up to 50%. On November 27, 2019, Schneider Electric (SE) announced the launch of its second Smart Factory facility in Bengaluru, Karnataka, India.
The data center cooling market research report includes in-depth coverage of the industry with revenues & forecasts for the following segments:
Segmentation by Infrastructure
- Cooling Systems
- Other infrastructure
Segmentation by Systems
- CRAH & CRAC
- Cooling Towers & Dry Coolers
- Economizers & Evaporative Coolers
Segmentation by Technique
- Direct liquid & immersion
Segmentation by Tier Standards
- Tier I &II
- Tier III
- Tier IV
Segmentation by Geography
- China & Hong Kong
- Australia & New Zealand
- Southeast Asia
- Other Countries
- Rest of APAC
- Central & Eastern Europe
- Russia & Czech Republic
- Poland & Austria
- Other Countries
- Finland & Iceland
- Western Europe
- Other Countries
- North America
- Latin America
- Middle East
- Other Middle Eastern Countries
- South Africa
- Other African Countries