Data Center Cooling Market by Offering (Services, Solution), Type of Cooling (Room-based Cooling, Row/Rack-based Cooling), Data Center Type, Application - Global Forecast 2024-2030

Data Center Cooling Market by Offering (Services, Solution), Type of Cooling (Room-based Cooling, Row/Rack-based Cooling), Data Center Type, Application - Global Forecast 2024-2030

The Data Center Cooling Market size was estimated at USD 13.04 billion in 2023 and expected to reach USD 14.52 billion in 2024, at a CAGR 11.65% to reach USD 28.23 billion by 2030.

Data center cooling refers to the various processes and technologies used to maintain an optimal temperature within a data center environment. Data centers include many servers and networking equipment that generate significant amounts of heat during operation. Effective cooling is crucial to ensure that this equipment operates within its safe temperature thresholds, thereby maximizing reliability and performing efficiently. The escalating requirement for data center services, fueled by big data analytics, artificial intelligence, and the implementation of machine learning algorithms across industries, has propelled the construction of new data centers around the world, stimulating the adoption of modern cooling solutions that are scalable, adaptable to various climates, and capable of sustaining the increased heat loads imposed by high-performance computing systems. However, technical issues in data center cooling solutions may adversely impact their functionality and prevent end-use sectors from using data center cooling solutions. Moreover, ongoing research and development to innovate and offer energy-efficient, environmentally friendly, and cost-effective solutions that meet the evolving requirements of data center operators are anticipated to expand the use of data center cooling solutions worldwide.

Regional Insights

The data center cooling market is evolving in the Americas owing to the presence of tech giants, a large number of data centers, and the demand for energy-efficient and advanced cooling systems. The escalating demand for data centers and stringent EU energy efficiency regulations drive Europe's data center cooling market. The Middle East, in particular, with its hot climate, creates a challenging environment for data center operation, propelling the demand for efficient data center cooling solutions. Africa's digital transformation is gradually increasing demand for data centers and associated cooling systems to support the increased IT load. The Asia-Pacific region is witnessing growth in the data center cooling market, primarily fueled by the surge in data consumption and the rising adoption of cloud services in economies such as China, Japan, India, and Singapore and supportive government policies regarding infrastructure development. The APAC region represents an increase in the adoption of innovative cooling techniques, such as immersion and district cooling, taking advantage of the varied climatic conditions to enhance efficiency.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Data Center Cooling Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Significant growth in the number of data centers and their power density
Ongoing digitalization and need for advanced data center infrastructures
Increasing investments in supercomputers and hyperscale data centers

Market Restraints

High costs of data center cooling solutions and services

Market Opportunities

Emergence of liquid cooling technology and the proliferation of cloud services
Supportive government investments in data center infrastructures

Market Challenges

Technical issues associated with data center cooling solutions

Market Segmentation Analysis

Offering: Significant penetration of data center cooling services
Type of Cooling: Extensive demand for room-based cooling solutions
Data Center Type: Surging deployment in large scale data centers
Application: Proliferation of data center cooling solutions in IT sector

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Data Center Cooling Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Data Center Cooling Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Zutacore And Valeo Present New Solution For Data Centre Cooling At Dell Tech World 2023

ZutaCore and Valeo introduced a solution for data center cooling at Dell Technologies World in Las Vegas. This integrated air-conditioning system offers energy efficiency and operational convenience. Its primary objective is to provide efficient cooling for large-scale IT infrastructures while simultaneously reducing power consumption.

DOE Funds USD 40 Million For Advanced Data-Center Cooling

The Department of Energy allocated USD 40 million to 15 vendors and university labs for the coolerchip program. The program aims to reduce data center cooling power consumption to 5% of total energy usage, resulting in a Power Usage Effectiveness (PUE) of 1.05. The recipients have been awarded funds ranging from USD 1.2 million to USD 5 million for various cooling technologies, including liquid chip cooling and modular data-center design.

KKR to Acquire CoolIT Systems

KKR signed a definitive agreement to acquire CoolIT Systems, a provider of data center cooling solutions. This strategic investment is expected to bolster CoolIT's capacity to expand and meet the growing demands of its customers in the data center market. The acquisition is anticipated to benefit various sectors, including enterprise, high-performance computing, cloud service providers, and desktop computing.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Data Center Cooling Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Data Center Cooling Market, highlighting leading vendors and their innovative profiles. These include Abb Ltd., Alfa Laval AB, Asetek, Inc., Black Box Corporation, Climaveneta, Coolcentric, Danfoss A/S, Dell Inc., Delta Power Solutions, Exxon Mobil Corporation, Fujitsu Limited, Heatex, Hitachi, Ltd., Infineon Technologies AG, Munters, Nortek Air Solutions, LLC, NTT Limited, Raritan Inc., Rittal GmbH & Co. KG, Schneider Electric SE, SPX Cooling Tech, LLC, STULZ GMBH, The Dow Chemical Company, and Vertiv Group Corp..

Market Segmentation & Coverage

This research report categorizes the Data Center Cooling Market to forecast the revenues and analyze trends in each of the following sub-markets:

Offering
Services
Consulting
Installation & Deployment
Maintenance & Support
Solution
Air Conditioning
Chilling Units
Control Systems
Cooling Towers
Economizer Systems
Liquid Cooling Systems
Type of Cooling
Room-based Cooling
Row/Rack-based Cooling
Data Center Type
Enterprise Data Centers
Large Scale Data Centers
Mid Size Data Centers
Application
BFSI
Energy
Healthcare
IT
Retail
Telecom
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year