This research report on the global data center cooling market offers analysis on size & forecast, share, industry trends, growth drivers, and vendor analysis. The study also includes insights on segmentation by cooling infrastructure (cooling system and other infrastructure), by cooling techniques (air-based and liquid-based), 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).
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 during the forecast period. 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.
This research report includes a detailed segmentation of the market by cooling infrastructure, cooling technique, cooling systems, and geography.
Insights by Infrastructure
The global data center cooling market growth for the air-based technique primarily depends on the construction of new facilities (traditional, brick-and-mortar facility, or modular facilities), 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 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 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 chillers, and air/waterside economizers will continue to grow along with other infrastructure. Also, 2N redundancy piping infrastructure has gained increased traction in the cooling design to avoid operational failure.
Insights by Cooling Technique
Free cooling solutions are gaining momentum over liquid-based techniques. 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 the facilities that use water-based technique. The facility operators in the US, Europe, Nordic, Canada, and Japan are gaining traction during the forecast period. In addition, innovation in the free cooling space, especially with the use of outside air to cool facilities 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 techniques, which is contributing to the growth of global data center cooling market. This method is popular among many facilities across APAC, North America, Europe, and Nordic. However, the adoption of free 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.
Insights by Cooling Systems
The deployment of hyperscale and mega facilities is driving the adoption of 2N CRAC or CRAH units in the global market, whereas other facilities 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 solutions, thus significantly benefiting the manufacturers.
The facilities 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 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 facilities and improving efficiency through reduced PUEs and carbon emission is driving the market for economizers and evaporative coolers. The other 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 facilities with the rack power density of over 30Kw, which is likely to drive the market.
Insights by Liquid Cooling Technique
The adoption of efficient chilled-water systems that save up to 30% in water consumption will boost the demand for water-based 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 market during the forecast period.
Direct liquid cooling and immersion cooling solutions are highly adopted by the operators to facilitate 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 facilities 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 and immersion cooling solutions. Further, multiple OEM partnerships is also likely to contribute to accelerated growth.
Insights by Geography
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 demand in the region. Besides, the market will also witness growth by introduction of innovative products to by vendors that will increase the sustainability.
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 in the Latin America region. Further, the increased number of internet usage and social media, business user’s demands 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 systems and air-based 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.
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 market. Further, China, India, Australia, Singapore, and Hong Kong are leading investors in this region. The major colocation 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
Key Vendor Analysis
The data center cooling market comprises of both global and local providers. There are several cooling infrastructure providers offering complete range of solutions as well as specific products. Further, the growing consumption of electricity by facilities 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 operations by 90% and reduce cooling OPEX up to 50%. In terms of revenue, leading vendors are expected to generate more revenue.
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
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