Latin America Data Center Cooling Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

Latin America Data Center Cooling Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

Key Highlights

• Latin America has more than 10% of the total internet users in the world. This has been growing for some years because of the increasing use of smartphones, tablets, laptops, etc. Due to this increase in internet use, big companies in the software and the internet started opening data centers in this region.
• Little attention has been given so far to the cost of energy used by different IT systems. But with the rising energy costs, enterprises are looking towards those solutions which can help them save some dollars. The demand for such systems is on the rise and has become one of the driving factors behind the decisions regarding deploying new technologies.
• To meet the requirements of the customers, IT organizations are deploying new applications. This is leading to space, power, and cooling shortage. These issues have led many organizations to realize data center costs are now a part of their limited budget. To take full advantage of their systems, they need to spend effectively and in those technologies which increase the lifespan of the data center as well as the business agility.
• Datacenter cooling is a primary target for energy efficiency improvements—these help in bringing down costs related to data centers' energy consumption. Companies are now working towards new cooling technologies as well as refining the old ones. Some of the cooling technologies which are being used at present are chillers, air conditioners, economizers, and hot huts. With data centers being one of the contributors to greenhouse gas emissions, green data centers are gaining traction. These data center cooling systems maximize energy efficiency and minimize environmental impact.
• Skanska is one of the companies that has developed eOPTI-TRAX, a new data center cooling technology that can reduce the expenditure incurred in these cooling systems. As the demand for data centers grows, there will be a need for more effective cooling solutions. Though there are some major players like IBM, Schneider Electric, and HP present in the Data Center cooling market, some other vendors like Skanska are challenging the status quo with their superior solutions.

Key Market TrendsInformation Technology Industry to Witness Highest Growth

• The IT industry needs on-premise private data storage centers and hyperscale data centers for its operations according to the size of the organization. Additionally, the adoption of cloud storage has increased over the years due to growth in SaaS providers, which is enabling cloud storage providers to expand their capacities and is expected to increase the demand for data center cooling systems.
• Cloud storage providers, like Microsoft, AWS, and Google, are expanding their storage capabilities to offer more efficient workflow on the cloud. These companies are making investments in hyperscale deals. In May 2018, Google announced that it was adopting liquid cooling systems for AI data crunching, as the heat generated by its new tensor processing units (TPUs) exceeded the limits of its previous data center cooling solutions.
• Moreover, CloudHQ stated that, by 2022, the industry is expected to get 350-megawatt storage campuses. In 2018, the company signed a 72-megawatt lease in Ashburn, the largest in data center history.
• In February 2018, the second-largest grocery chain in America, Albertsons Companies, announced the adoption of a cloud storage service from Microsoft to improve the retail experience. With this, the company planned to leverage the cognitive analytics, AI, and data science capabilities from Microsoft. Such advancements among top retailers are expected to launch new data center establishments, which will drive the demand of the data center cooling market.

Emergence of Green Data Center

• With the growing need to expand, storage capacity has emerged as a big opportunity for every one of the major enterprises in the data center and storage space market, as there has been a consistent rise in the number of data-hungry customers and applications. Globally, the amount of data is set to grow drastically in the next few years.
• According to Huawei, the global estimate of data center demand is expected to increase by 3 to 10 times by 2030. Green Data Center (GDC), which provides effective and eco-friendly solutions in terms of data storage and reduction in energy consumption, is expected to witness great demand, owing to the positive outlook of the data center storage needs and new constructions, which has been brought about, due to the regulations and the anticipated rise in need to reduce the operational expenditure.
• According to Green House Data Inc., the data center industry sucks down over 30 GW of energy per year, and that amount increases every day. The carbon footprint of a medium 10 MW data center can range from 3,000,000 to over 130,000,000 kilograms of CO2. Reducing that carbon footprint through efficiency and renewable energy use has a dramatic effect. Depending on the electric grid region, PUE improvements can eliminate millions of pounds of CO2 emissions, consequently boosting the growth of the market.
• Despite the long-term savings and ROI, the renewable energy data centers have a high initial investment cost. A green data center solution consists of green power and cooling infrastructure solutions, coupled with energy-efficient equipment and management system, which are the factors driving the demand for green data centers over the other data centers.
• Power is an important part of green data center investments. Both low-power solutions and effective solutions support organizations to reach their coveted objectives. However, results from contemporary researches have shown that this trend is lagging down due to the effective green efficiency actions taken up in mature markets Asia-Pacific region. With the rising electricity usage, enhanced billings, and growing emissions of CO2 from these data centers, the need for green data centers is set to grow, thereby driving the data center cooling market forward in the region.
• For instance, according to IEA, the volume of global energy-related carbon dioxide emissions has steadily risen over the last decade, from 28.7 billion metric tons carbon dioxide emissions in 2009 to 33.3 billion metric tons in 2019. Also, Google emitted just above 15 million tons of carbon dioxide equivalents in 2018. Google reported that all of its emissions were neutralized by carbon offset projects.

Competitive Landscape

The Latin America data center Cooling market is highly competitive by nature and appears to be fragmented due to the presence of several prominent players. Key strategies traced from the analysis of recent developments of the market players include agreement & partnership, acquisition expansion, and product launch. These key players strive to deliver comprehensive solutions which can reduce the expenditure incurred with the cooling systems.

• May 2020 - EcoData Center in Falun, the world's first climate-positive data center, deployed a new method for liquid-based cooling, developed in a collaboration between Schneider Electric, Iceotope, and Avnet. The plant in Falun is entirely powered by renewable energy sources attributable to the integration with Falu Energi & Vatten; all waste heat is led back to the heating plant. To further reduce energy consumption, a completely new, chassis-based liquid cooling method is now being installed. The method has been developed in a collaboration between the energy specialist Schneider Electric, the cooling technology company Iceotope and the consulting company Avnet, which works with technology integration. Implementation is estimated to reduce energy consumption for rack cooling by up to 90 %and for the entire data center by about 14%.
• June 2020 - Fujitsu announced the expansion of its storage portfolio with four new series of the Fujitsu Storage ETERNUS that leverage NetApp's advanced data management software. This launch represents the next step of Fujitsu's strategic partnership with NetApp in offering a data management infrastructure that supports digital transformation.

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