Global Data Center Cooling Market - 2023-2030

Global Data Center Cooling Market - 2023-2030

Global Data Center Cooling Market reached US$ 10.5 billion in 2022 and is expected to reach US$ 27.3 billion by 2030 growing with a CAGR of 12.8% during the forecast period 2023-2030.

One of the primary factors driving the growth of the global data centre cooling market is the increase in consumption in data centers. Data centre operators are dealing with the cost issue caused by high energy consumption by adopting efficient and cost-effective cooling technologies. The increase in government activities in the form of large investments and funds to minimize carbon footprints from high-power density plants also has an effect on the market.

During the forecast period, North America is estimated to account for approximately 35%of the global data centre cooling market. With the presence of technology companies such as Facebook, Amazon Inc. and Google Inc., the region is expected to witness acceptance of new technology-based solutions. The region has a large number of data centers, which are distinguished by the presence of numerous IT enterprises, creating new potential for the global data centre cooling market.

Market Dynamics
The Rising Application of Cloud Storage
Cloud storage providers like as Microsoft, AWS and Google are expanding their storage capabilities in order to enable more efficient cloud workflow. These firms are investing in hyperscale transactions. As the heat generated by its new tensor processing units (TPUs) exceeded the boundaries of its old data centre cooling solutions in June 2022, Microsoft and Meta joined Google in using AI to help manage their data centers.

In addition, the IT market includes computer networking, broadcasting, system design services, information distribution technologies such as television and telephones, as well as other equipment utilised in the process. The large requirements necessitate the deployment of a cooling system in order for the devices operate normally, boosting demand for the data centre cooling market.

The Development of Green Data Centers
The growing need for cost-effective and green solutions to reduce energy consumption in the IT and telecom industries is driving up demand for Data Centre cooling. The development of ultra-low-carbon data centers by major players such as Schneider, as a result, the demand for ecologically friendly solutions to reduce data centre carbon footprint is increasing, driving the global data centre cooling market.

According to the Department of Energy, data centers consume around 2% of all power consumed in U.S. Green data centers, which provide effective and eco-friendly solutions for data storage and energy usage, are expected to see significant demand.

High Costs and Complex Design
Using modern cooling technology and infrastructure together can be costly. Upgrading or retrofitting cooling systems to include newer, more efficient technologies may necessitate a substantial investment. Additionally, continuous maintenance and operational expenditures, particularly for small to medium-sized data centers, can put a strain on budgets.

Data centre cooling systems are complicated, necessitating careful planning and integration with other important infrastructure components. It is critical to find the proper balance between cooling efficiency, air circulation and equipment placement. Design and integration complexities can cause delays, cost overruns and potential performance issues.

COVID-19 Impact Analysis
The COVID-19 pandemic is expected to have a significant influence on the expanding data centre cooling market. Although the advent of COVID-19 has had an impact on the overall major industrial sectors, the data centre cooling market is likely to rise gradually due to increased demand from industries such as financial institutions, telecom operators, manufacturing and services.

Furthermore, due to the lockdown imposed across multiple countries to control the COVID-19 virus, there is a strong need for unstaffed data centers to be created and managed. The project is led by DCIM software, with products from DCIM specialists, equipment vendors such as Schneider Electric and Vertiv and edge specialists such as EdgeConneX and Vapour IO. Furthermore, in July 2020, Asetek collaborated with Hewlett Packard Enterprise (HPE). The alliance aims to provide HPE Apollo Systems with superior data centre liquid cooling solutions.

Russia-Ukraine War Impact Analysis
The conflict has the potential to disrupt the global supply chain, including the manufacture and distribution of data centre cooling equipment. If critical components or raw materials are supplied from the impacted region, manufacturing and distribution of cooling systems may be delayed or disrupted. It may have an impact on the market's availability and cost of cooling equipment.
Changes in legislation and polic
ies as a result of geopolitical events may have an impact on the data centre sector. Governments may enact new data sovereignty legislation or data localization requirements, changing the location, construction and cooling systems of data centers.

Segment Analysis
The global data center cooling market is segmented based on architecture, end-user, cooling system and region.

The Growing Adoption of Cloud Services in IT Sector
The IT industry vertical, which is the largest, is projected to account for more than 35% share of the global data center cooling market in 2022. According to the size of the organisation, the IT sector requires on-premise private data storage and hyperscale data centers for its operations. Furthermore, cloud storage adoption has expanded over the years as SaaS providers have grown, enabling cloud storage providers to expand their capabilities, which is likely to raise demand for data centre cooling systems.

Furthermore, CloudHQ estimated that the sector will have 350-megawatt storage facilities by the end of 2021. In 2022, the business intends to begin construction on new data centers in Chaska and Illinois. It collaborated with companies like ComEd, Dominion Energy and Vizsla Ventures LLC to build new campus using their IT opportunity.

Geographical Analysis
The Growing Investments in Data Centers in Asia-Pacific
Asia-Pacific is expected to develop at the fastest CAGR in the global data center cooling market during the forecast period, owing to the region's rising investmenets in data centers. Investment in higher-speed Ethernet switches remained strong last year, fueled mostly by demand from hyperscale data centers, cloud providers and an increase in data centre investments.

As hyperscale facilities grow in size, the need for high-capacity switches will surpass the demand for data centre cooling systems. The growing domestic demand for liquid cooling systems for data centers is encouraging foreign companies to participate in the Japanese data centre cooling sector. Cloud&Heat Technologies, for example, has supplied a container-based system to a Japanese vendor who expects to sell the German firm's liquid-cooled solutions in Japan.

Competitive Landscape
The major global players include Airedale Air Conditioning, Climaveneta, Data Aire, Vertiv, Rittal, Schneider Electric, STULZ, FUJITSU, Allied Control (BitFury Group) and Motivair.

Why Purchase the Report?
• To visualize the global data center cooling market segmentation based on architecture, end-user, cooling system and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of data center cooling market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global data center cooling market report would provide approximately 61 tables, 62 figures and 203 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies