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

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

The North America Data Center Cooling Market is expected to grow at a CAGR of 12.3% over the forecast period 2022 to 2027. Rise in need of efficient and cost-effective data centers, green initiatives for eco-friendly data center solutions, healthy growth with the data center, and power density drive the market growth. Furthermore, the development of modular, containerized, and performance-optimized data center (POD) facilities will boost demand in the data center cooling systems market in North America.

Key Highlights

• The United States dominated the overall North America data center cooling market due to the growth in the development of hyperscale and colocation facilities with more than 100 MW power capacity.
• Government initiatives to reduce carbon dioxide emissions from high power density facilities will accelerate market development. For example, in August 2021, the U.S. Environmental Protection Agency (EPA) mandated energy efficiency targets for data centers that reduce carbon dioxide emissions by 20%. Datacenter cooling systems account for about 30% to 60% of energy consumption, so market players are implementing advanced cooling technology to maintain efficiency.
• The solution segment ruled the North America data center cooling market share due to the increased adoption of energy-efficient, environment-friendly, and cost-effective cooling solutions because of various governments' stringent environmental safety rules.
• Tax incentives in Canada and South-Eastern and South-Western regions in the U.S. will create new business opportunities for vendors in North America's data center market. Furthermore, the development of modular, containerized, and performance-optimized data center (POD) facilities will boost demand in the data center cooling systems market in North America.
• However, Canada is anticipated to see the most significant growth rate in the North America data center cooling market owing to the rise in the number of data centers due to various factors, which include low energy costs, bandwidth, political stability, and ease of doing business and others are expected to affect the market positively.
• However, the requirement of specialized infrastructure and higher investment cost and cooling challenges during a power outage are anticipated to hinder the growth during the North America data center cooling market forecast period.
• Furthermore, the emergence of liquid-based cooling and portable cooling technologies and growth in requirement for a modular data center cooling approach is anticipated to provide lucrative opportunities for the North American data center cooling market.

Key Market TrendsAir Conditioners Segment to hold Significant Share in the Market

• In the recent past, there has been an increment in the number of data centers. More processors are being used in a given space to increase the data centers' performance, which results in increasing density. The requirement for power and cooling has grown along with an increase in density.
• According to Cisco Systems, it is forecasted that by 2021, there will be 7.2 million data centers in the world. Digital society's progression has generated an ever-greater amount of data, and it is predicted that by 2021, around 1,327 EB data will be stored in data centers - almost an 8-fold increase from 2015. Big data is a major driver of growth in stored data and is predicted to overall bulk data stored in data centers.
• Furthermore, data centers' power density experiences growth by an average of 1.5 kW per rack, which results in limited air distribution and enhanced heat generation. In general, the IT equipment typically needs between 100 and 160 cfm of air per kW, but in a dense environment, it diminishes to less than 100, which results in higher heat generation.

Installation and Deployment segment to witness significant growth

• Datacenter installation involves a great deal of preparation, planning, and designing. Deployment of multiple data centers implies a logical partitioning of all GWS nodes into segregated groups using dedicated service resources, such as T-Server, StatServers, etc.
• IBM communications server for data center deployment consolidates and extends the traditional communications server for AIX, Linux, and Linux on System Z platforms. In the same way, GWS supports deployment with multiple (two or more) data centers.
• Datacenter hosting services can be viewed as a continuum, consisting of a range of implementation services, ranging from creating websites to integrating legacy systems, infrastructure provisioning and management, and actual web hosting.
• Datacenter infrastructure also helps visualize and manage space and capacity to have a better plan to optimize data center operations. It can be deployed rapidly, easily, and efficiently to quickly respond to business needs.
• In some cases, an IT team may opt to move its IT gear from on-premise data centers to collocation facilities or outsource its applications to cloud providers. Data centers must operate at optimal efficiency around the clock. ABM Technologies provides facility services for data centers.
• Many firms offer data center consulting services. For instance, VNTT delivers data center services with modern platforms and standardized operating processes. Equinix Infrastructure Services (EIS) combines its data center expertise with the skills and scale of certified technology partners worldwide.

Competitive Landscape

The North America Data Center Cooling Market is highly competitive and consists of several major players. In terms of market share, few of these players currently dominate the market. Market penetration is growing with a strong presence of major players such as Schneider Electric SE, Black Box Corporation, Asetek, Nortek Air Solutions LLC, Emerson Electric Co., Hitachi, Ltd., Rittal GmbH & Co. Kg, Fujitsu Ltd., Stulz GmbH, and Vertiv among others in established markets and with the increasing focus on innovation, the demand for new technologies such as liquid-based cooling and portable cooling technologies is growing, which, in turn, is driving investments for further developments in the region.

• April 2021 - Munters expanded its data center cooling segment, including direct evaporative cooling, and relocated its Virginia employees to the new facility. The company aimed to invest USD 36 million in a 365,000 square-foot facility to house manufacturing, R&D, and sales. The facility is in Botetourt County, Virginia, about 40 miles south of the current location in Buena Vista, Virginia. Also, Munters' data center cooling business has expanded in recent years, owing to increased demand for supporting digital platforms, such as online shopping, games, remote learning, social media, and advancements in AI technology.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.