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Data Center Cooling Market - Global Outlook and Forecast 2019-2024

2nd Edition

SKU : ARZ190806
  • Published on : September 2019

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This market research report on the global data center cooling market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by cooling infrastructure (cooling system and other infrastructure), by cooling techniques (air-based cooling and liquid-based cooling), by cooling systems (CRAC & CARH, chiller, cooling towers & dry coolers, economizers & evaporative coolers, and other cooling units), and geography (North America, Latin America, Europe, MEA, and APAC).

Data Center Cooling Market: Dynamics

The increased data center construction in developing countries such as Latin America, MEA and Southeast Asia (except Singapore), India, China & Hong Kong, and South Korea is likely to boost to the data center cooling market during the forecast period. Besides, the increased investment by hyperscale companies and rise in adoption of innovative and energy-efficient cooling infrastructure solutions (to reduce the power consumption by 50%) are likely to contribute in fetching huge profits for the vendors.

The global data center cooling market is witnessing an increased adoption of automation and monitoring solutions. These solutions identify the maintenance requirements of infrastructure to avoid operational failures and provide end-to-end monitoring and automation of facilities. Thus, it helps to rectify the high OPEX through power consumption and increases the efficiency of the entire facility.

Further, Data Center as a Service” or DMaaS, a service based on DCIM solution is likely to gain traction in the market. It comprises of integrated physical data-center infrastructure management with many other services such as including IT-workload management, energy management, connectivity, and business costing. Vendors offer DCIM solutions to monitor power consumption and carbon dioxide emission will gain a major revenue boost in the coming years.

Cryptocurrency is expected to emerge as one of the strongest drivers for data center growth during the forecast period. Datacenters that operate multiple Graphical Processing Units (GPUs) increase the rack power density, requiring a significant amount of cooling. These facilities are being built in the Nordic region, where free cooling reduces the power consumption by cooling infrastructure and significantly contributing to the market growth. These facilities will aid in the growth of direct-to-chip cooling and liquid-immersion cooling market segments during the forecast period. The global data center cooling market size is expected to grow at a CAGR of more than 4% during 2018–2024.

 Data Center Cooling Market: Segmentation

This market research report includes a detailed segmentation of the market by cooling infrastructure, cooling technique, cooling systems, and geography.

 

Data Center Cooling Market: Infrastructure

Increasing use of AI & IoT systems will lead to generating more revenue in the market

The global data center cooling market growth for the air-based cooling technique primarily depends on the construction of data centers (traditional, brick-and-mortar facility, or modular data center), type of system adopted, redundancy of the system adopted, cost, and growth of rack power density. Tier III facilities are increasingly focussing on adopting 2N redundant  CRAC and CRAH units to enable high availability service offerings in the global market. Further, data center colocation operators are investing a huge amount to develop facilities that are involved in the adoption of efficient cooling systems and incorporate flexible design. The increasing use of AI and IoT systems will continue to increase the IT load, which will, in turn, lead to higher revenue generation in the global data center cooling market during the forecast period.

The other infrastructure includes mechanical equipment’s such as pump systems, piping units and valves, boilers, ductworks, fire protection, and suppression systems, and sprinklers. The use of free cooling systems using evaporative coolers, free cooling chillers, and air/waterside economizers will continue to grow along with other infrastructure. Also, 2N redundancy piping infrastructure has gained increased traction in data center cooling design to avoid operational failure.

Data Center Cooling Market: Cooling Technique

Free cooling solutions likely to be in-demand in the market

Free cooling solutions are gaining momentum over liquid-based cooling solutions. The data center operators in the US, Europe, Nordic, Canada, and Japan are gaining traction among Free cooling. However, the use of chilled water systems is still highly prevalent in the market, especially in data centers that use water-based cooling. The data center operators in the US, Europe, Nordic, Canada, and Japan are gaining traction among free cooling and significantly driving the global data center cooling market. In addition, innovation in the free cooling space, especially with the use of outside air to cool data centers without any on-site water requirement is expected to transform the data center cooling market size during the forecast period. The market is also witnessing an increased adoption of evaporative coolers that facilitate partial cooling with indoor CRAC units, which is likely to propel the data center market share.

The adoption of chilled water systems is one of the popular liquid-based cooling techniques, which is contributing to the growth of global data center cooling market. This method is popular among many data centers across APAC, North America, Europe, and Nordic. However, the adoption of free cooling chillers is also likely to increase due to a reduction in power consumption (90%) by these systems during peak winter, facilitating the use of outside air to cool the water.

Data Center Cooling Market: By Cooling Systems

Indirect evaporative cooling systems are likely to witness high adoption

The deployment of hyperscale and mega facilities is driving the adoption of 2N CRAC or CRAH units in the global market, whereas other data centers are expected to go for N+N redundant systems. Besides, adoption of these CRAH & CRAC systems are also expected to witness a hike in the data centers that use DX or chilled-water cooling solutions, thus significantly benefiting the data center cooling manufacturers.

The data centers that require highly efficient cooling with less dependency on the outside environment to cool the facility are the largest consumers of chillers. However, higher adoption of evaporative coolers (considering the PUE benefits) is hindering the growth of the segment.  Further, dry coolers and cooling towers are used by data centers depending upon the design of the facility. For instance, Quality Technology Services and Equinix are involved in using data center cooling towers and dry towers.

An enhanced focus on reducing electricity consumption by data centers and improving efficiency through reduced PUEs and carbon emission is driving the market for economizers and evaporative coolers. Further, owing to the great benefits of free cooling techniques, indirect evaporative cooling systems is likely to witness high adoption in the next few years.

The other cooling units mostly comprise accessories such as humidifiers, airflow management products, and additional monitoring units. The market is witnessing high adoption of direct-liquid cooling solutions and liquid immersion solutions by the data centers with the rack power density of over 30Kw, which is likely to drive the data center cooling market.

Data Center Cooling Market: Liquid Cooling Technique

Adoption of chilled-water systems will boost water-based cooling techniques

The adoption of efficient chilled-water systems that save up to 30% in water consumption will boost the market for water-based cooling techniques. Further, the proliferated relocation of data centers to coastal regions, ocean water will be a major viable source for cooling during the forecast period. In addition, Microsoft’s under ocean data center experiment will be a key to the existence of water as a cool solution and expected to drive the data center cooling market during the forecast period.

Direct liquid cooling and immersion cooling solutions are highly adopted by the data center operators to facilitate the cooling of high-density racks up to 200 kW (for increased efficiency). These techniques are common among supercomputing facilities, where the use of these systems is rapidly penetrating among data center running artificial intelligence and machine learning workloads. China, the US, Japan, Germany, France, and the UK are some of the leading markets for direct liquid cooling and immersion cooling solutions. Further, multiple OEM partnerships is also likely to contribute to accelerated market growth.

Data Center Cooling Market: Geography

Evaporative/adiabatic coolers and free-cooling chillers are likely to gain traction in the Western Europe region

Colocation providers along with hyperscale cloud data center developers are the major revenue contributors in the North America data center cooling market. The increased investment by the colocation service provider, hyperscale service provider, telecommunication, enterprises, government, and education services are expected to drive the market in the region. Besides, the market will also witness growth by introduction of innovative products to by vendors that will increase the sustainability of cooling systems.

The increased investment in the construction of modular datacentres and increased investment by hyperscale cloud data center developers are the key factors attributed to the growth of the market in Latin America. Further, the increased number of internets uses and social media, business users demand data center will increase which led to attracting more investments in Brazil. Thus, data center cooling manufacturers are likely to gain more revenues from the region.

In UK, Netherlands, Germany, France, Ireland, Belgium, and Switzerland multiple projects are carried out by colocation, cloud, telecommunication and internet service providers, which is leading to the significant revenue growth in Western Europe. Further, evaporative/adiabatic coolers and free-cooling chillers are likely to gain traction in the region due to availability of over 6,000 hours per year free-cooling benefit.

The water-based cooling systems and air-based cooling solutions are likely to gain prominence in the MEA data center cooling market. Further, owing to increased investment from colocation service providers, Bahrain is likely to emerge as a potential market in the region, whereas Turkey and Israel will be the major markets for the growth in data center cooling market.

The data center market in APAC is witnessing steady growth with continued investments from hyper-scale and cloud service provider. Also, the growing number of internet users, social media users, and businesses adopting cloud-based services are adding to the growth of the data center market. Further, China, India, Australia, Singapore, and Hong Kong are leading investors in the data center market in this region. The major colocation data center investors in the APAC region include GDS Services ltd, Equinix, Digital Realty, Tencent, Global Switch, NTT Communication, KDDI Telehouse, Ctrl S, and NextDC.

Key Profiled Countries 

  • Americas
    • US
    • Canada
  • Latin Americas
    • Brazil
    • Other Latin American Countries
  • Western Europe
    • UK
    • Germany
    • France
    • Netherlands
  • Nordic
    • Sweden
    • Denmark
    • Finland
    • Iceland
    • Norway
  • Central & Eastern Europe
    • Poland
    • Austria
    • Russia
    • Czech Republic
  • Middle East
    • GCC Countries
    • Other Countries
  • Africa
    • South Africa
    • Kenya
    • Nigeria
    • Other Countries
  • APAC
    • China& Hong Kong
    • Southeast Asia
      • Singapore
      • Malaysia
      • Thailand
      • Indonesia
      • Other Countries
    • Australia& New Zealand
    • India
    • Rest of APAC

Key Vendor Analysis

The data center cooling market comprises of both global and local providers. There are several cooling infrastructure providers in the market offerings complete range of solutions as well as specific products. Further, the growing consumption of electricity by data center cooling units has pushed to vendors to introduce innovative and effective solutions for datacentres.  Innovations across infrastructure have led to the development of new products that have increased the efficiency of data center operations by 90% and reduce cooling OPEX up to 50%. In terms of revenue, leading vendors are expected to generate more revenue.

Key Vendors

  • Airedale Air Conditioning
  • Rittal
  • Schneider Electric
  • STULZ
  • Vertiv

Other prominent vendors include 3M, AIRSYS, Alfa Laval, Allied Control, Asetek, ClimateWorx International, Climaveneta, Condair Group, Coolcentric (Wakefield-Vette), CoolIT Systems, Daikin Applied, Data Aire, Delta Group, Emicon, Green Revolution Cooling, KyotoCooling, Motivair Corp., Munters, Nortek Air Solutions, Nortek Humidity, Pentair, Qcooling, Renovoair Zhuhai Co., Swegon, Trane, United Technologies (CARRIER), Vigilent, and Wakefield-Vette.

Key market insights include

  1. The analysis of global data center cooling market provides market size and growth rate for the forecast period 2018-2024.
  2. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the global data center cooling market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook of the global data center cooling market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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