Data Center Cooling Market - Global Outlook & Forecast 2024-2029

Data Center Cooling Market - Global Outlook & Forecast 2024-2029

The global data center cooling market size by investment is expected to grow at a CAGR of 10.63% from 2023 to 2029.

KEY TRENDS

5G Deployment Fuels Data Center Investments

• The growing use of smart devices drives the rise of 5G and edge computing, the need for faster processing, and the pressure on networks. Combining edge computing with 5G enhances digital experiences, boots performance, strengthens data security and ensures uninterrupted operation across various industries.
• Edge data centers have seen significant growth across multiple sectors, with the telecommunication industry experiencing a notable increase in adoption. As 5G networks are rolled out, telecom providers use edge data centers to alleviate network congestion and enhance performance.

Rise in Adoption of AI to Drive Demand for Advanced Cooling Technologies

• The global data center cooling market is growing significantly due to the adoption of advanced technologies such as AI and ML. AI is shaping its evolution by integrating emerging technologies such as big data & IoT, driven,
• AI expansion drives significant transformation across various sectors, enhancing convenience and functionality in finance, healthcare, and beyond. In data centers with AI & ML workloads, liquid-based cooling is favored for its effectiveness in managing the substantial heat produced by powerful computing devices such as Tensor Processing Units (TPUs).
• In August 2023, According to Vertiv, With the growing use of AI and HPC, data centers are now being designed to handle a massive 100 megawatts of power and pack as much as 30 kW of computing power into each rack. This challenges data center buildings to maximize their available space while catering to customers with larger workloads. These data center buildings are evolving in various ways to cope with the increasing demands, such as handling heavier racks and improved cooling solutions. This includes the introduction of robotics in construction and advanced cooling methods such as direct-to-chip cooling. There is also the consideration of retrofitting data centers to double their capacity without expanding the building’s footprint.

Growth in Rack Power Density

• As a data center integrates advanced technologies such as AI, ML, and data analytics, it faces increased power demands, often ranging from 20 kW to 80 kW per rack, which generate substantial heat.
• Liquid cooling technology in the data center cooling market has become a highly effective solution to overcome the challenges faced by data centers. According to the Uptime Institute, advanced liquid-based cooling is more cost-effective and efficient when the rack density goes beyond 20 kW to 25 kW.
• Several data center operators plan to adopt liquid-based cooling techniques to house workloads with higher rack power density in data center facilities. For instance, In January 2024, Aligned Data Centers launched DeltaFlow~, a new liquid-based cooling system and technology. This technology has been designed to support the high-density computing requirements and workloads of up to 300 kW per rack.

Innovation in Data Center Cooling Techniques

• Adoption of Immersion Cooling
• Immersion cooling, a liquid-based cooling technique, regulates data center equipment temperature by submerging it in cooling fluid. This method helps dissipate heat and ensure optimal performance of components such as CPUs.
• In May 2024. LG UplUS announced it had developed a new data center in Paju, South Korea. The company also announced that it is equipped with an immersion cooling system.
• Direct-to-Chip Cooling
• Direct-to-chip liquid-based cooling is an advanced method used in the data center cooling market to handle and effectively dissipate heat produced by high-performance servers.
• 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.
• DeltaFlow
• DeltaFlow is the next evaluation in liquid-based cooling technology in data centers. It sets a new standard in liquid-based cooling, tailor-made to meet the demand of high-density environments and supercomputing.
• Adoption of Liquid-based Cooling Techniques
• Liquid immersion was considered a niche approach for the data center cooling market. Many data center operators and IT companies are testing and implementing advanced cooling solutions.
• These innovations aim to ensure operational reliability, achieve cost savings, and effectively manage the high-power densities of modern data centers.
• 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.

SEGMENTATION INSIGHTS

The global data center cooling market is witnessing growth in the adoption of both air and water-based cooling solutions in terms of cooling systems. Recently, the water-based direct-to-chip and immersion cooling techniques have increased. Many data center operators are interested in the immersion cooling technique because of its latest cooling technologies, and it is cost-effective. The demand for cooling immersion will increase in the future. For instance, LG Uplus announced that it had developed a new data center in Paju, South Korea, in May 2024. The company also announced that it is equipped with an immersion cooling system.

Segmentation by Infrastructure

• Cooling Systems
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Technique

• Air-based Cooling Techniques
• Liquid-based Cooling Techniques

Segmentation by Liquid-based Cooling Techniques

• Water-based Cooling
• Direct-to-chip Cooling
• Liquid Immersion Cooling

Segmentation by Tier Standards

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

In the global data center cooling market, North America dominated the market in terms of investment in 2023, followed by APAC. Further, the Latin American data center cooling market is expected to witness investment in data centers with the latest technology in cooling infrastructure. In Latin America, massive adoption of advanced technologies such as IoT, big data, AI and ML, and cloud-based services; deployment of submarine cable and 5G network connectivity and increasing high-speed internet connectivity are some of the factors driving the demand for the development of the new data center facilities hyperscale cloud regions and expanding the existing facilities in the region. Also, in the Latin American data center cooling market, Brazil witnessed dominance in terms of investment in 2023.

The growth of IoT, cloud computing, and AI/ML is propelling the data center market in Europe. Government-led initiatives are aimed at digitalization in different sectors in European countries. Local and global operators have shown interest in investing in data centers in European countries. For instance, In July 2023, CyrusOne planned its sixth German data center, FRA6, in Frankfurt following the Europark site acquisition. It will strategically provide 72 MW IT capacity across four floors, emphasizing sustainability and meeting Frankfurt's digital demands. Further, in Europe, Germany dominated the data center cooling market in terms of investment in 2023.

Segmentation by Geography

• North America
• The U.S.
• Canada
• Latin America
• Brazil
• Mexico
• Chile
• Colombia
• Rest of the Latin American Countries
• Western Europe
• The U.K.
• Germany
• France
• Netherlands
• Ireland
• Switzerland
• Italy
• Spain
• Belgium
• Other Western European Countries
• Nordics
• Sweden
• Denmark
• Norway
• Finland & Iceland
• Central & Eastern Europe
• Russia
• Poland
• Other Central & Eastern European Countries
• Middle East
• UAE
• Saudi Arabia
• Israel
• Other Middle Eastern Countries
• Africa
• South Africa
• Kenya
• Nigeria
• Egypt
• Other African Countries
• APAC
• China
• Hong Kong
• Australia
• New Zealand
• Japan
• India
• Taiwan
• South Korea
• Rest of APAC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Thailand
• Philippines
• Vietnam
• Other Southeast Asian Countries

VENDOR LANDSCAPE

• The global data center cooling market has grown significantly over the last few years, with investments from global, regional, and local data center operators.
• Developing data center campuses in all regions will bring significant revenue opportunities to the data center cooling market vendors offering the fastest-growing cooling technologies, such as liquid immersion and direct-to-chip.
• The data center cooling market has witnessed a growth of the latest technology in cooling infrastructure, increasing the demand for the latest cooling technology globally. This will increase vendors' revenue that provide this technology in data centers. For instance, In January 2024, STACK Infrastructure announced that it had expanded its data center with AI technologies and a high-density rack to fulfill the demand for ML workloads. It installed a direct–to–chip cooling solution and can support rack density of 300 kW or higher with the installation of an immersion cooling technique in the future.

Key Data Center Cooling Infrastructure Vendors

• Airedale
• Rittal
• Schneider Electric
• STULZ
• Vertiv

Other Prominent Data Center Cooling Infrastructure Vendors

• 3M
• 4ENERGY
• Airsys
• Alfa Laval
• AAON
• Aqua Cooling Solutions
• Aquila Group
• Asetek
• Asperitas
• Austin Hughes Electronics
• Canovate Electronics
• Carrier
• Chilldyne
• Citec International
• ClimateWorx
• Cooler Master
• Condair Group
• Coolit Systems
• Daikin Applied (Daikin Industries)
• DCX (LIQUID COOLING COMPANY)
• Degree Controls
• Delta Group
• ebm-papst
• EMICON INNOVATION AND COMFORT
• Envicool
• FlaktGroup
• Fuji Electric
• Green Revolution Cooling (GRC)
• HiRef
• Huawei Technologies
• Iceotope
• ION
• Johnson Controls
• Kelvion Holding
• KyotoCooling
• Legrand
• Lennox International
• LiquidCool Solutions
• LiquidStack
• Menerga
• Midas Green Technologies
• Minkels (Legrand)
• Motivair Cooling Solutions
• Munters
• Nortek Air Solutions
• nVent
• OceanAire
• QCooling
• Renovo Zhuhai
• Shanghai Shenglin M&E Technology
• SPX Cooling Technologies
• Stellar Energy
• Submer
• Swegon Group
• SWEP International
• Systecon
• Trane (Ingersoll Rand)
• United Metal Products (UMP)
• Upsite Technologies
• Vigilant
• Wakefield-Vette

KEY QUESTIONS ANSWERED:

1.How big is the global data center cooling market?

2.What is the growth rate of the global data center cooling market?

3.What are the key trends in the data center cooling industry?

4.Who are the key players in the global data center cooling market?

5.Which region holds the most significant global data center cooling market share?