Global Data Center Cooling Market Research Report: Forecast (2024-2030)

Market Definition

Data center cooling, or data center air conditioning (AC), refers to the technology and systems employed to maintain and regulate the temperature and humidity within a data center environment. It can rely on coolants or refrigerants to directly cool servers or components. It also circulates chilled water through pipes and heat exchangers to remove heat from the data center equipment. It prevents equipment overheating & reduces the risk of hardware failures, ensuring the uninterrupted operation of critical services.

Market Insights & Analysis: Global Data Center Cooling Market (2024-30):

The Global Data Center Cooling Market size was valued at USD 12.35 billion in 2023 and is estimated to grow at a CAGR of around 13.8% during the forecast period, i.e., 2024-30. The upward trajectory of the data center cooling industry is driven by a surge in the creation and consumption of data worldwide. The proliferation of bandwidth-heavy applications, cloud computing models, and Internet-of-Things (IoT) devices has led to heightened workloads for data centers, spurring demand for cutting-edge cooling solutions that deliver optimal performance while minimizing energy usage without damaging the environment.

As digital services become progressively more vital coupled with consistent expansion within IT infrastructure in the realm of data center cooling, there exists a pressing demand for cutting-edge equipment capable of mitigating downtime risks while concurrently adhering to eco-conscious metrics. This imperative fusion of reliability and sustainability serves as a potent catalyst propelling the rapid expansion of this market segment. As the digital landscape continues to burgeon on a global scale, data center cooling trends evolve dynamically, accommodating emerging demands within the ever-expanding digital ecosystems.

The expansion of the data center cooling market is propelled by the emergence of modular and containerized cooling systems, which offer adaptable thermal management solutions. These innovative approaches, known for their flexibility and scalability, are gaining traction among operators seeking to augment or adjust their current infrastructure as required. This ongoing shift towards adaptable thermal management solutions is driving enhancements in efficiency and overall performance across data centers, benefiting businesses in diverse sectors.

Additionally, advancements such as liquid cooling and AI-driven optimization address the need for more effective and sustainable cooling solutions. These trends align with the market's evolution, contributing to the increasing market size, along with the rising demand for data center cooling solutions. Companies have started launching innovative data center cooling solutions in recent years. For instance:

• In October 2023, ThermalWorks introduced an innovative waterless cooling system for the evolving data center industry.

This ultra-efficient, modular design aims to transform traditional data center operations by reducing energy consumption and eliminating water use in cooling processes.

Furthermore, the market is experiencing a positive trend due to cloud computing's increasing use for managing repetitive tasks and storing enormous data. The burgeoning adoption of edge computing, strategically situating data centers near end-users for expedited processing, stands as a pivotal driver propelling growth within the Data Center Cooling Market in the years ahead.

Global Data Center Cooling Market Driver:

Rising Numbers of Data Center Deployments Boosting the Market Expansion – There has been a notable surge in the number of data center deployments owing to the increasing demand for additional storage to store large volumes of data that have been generated regularly. Also, due to the proliferation of data centers, there has been a surge in energy usage and subsequent heat production. For instance:

• According to the International Energy Agency, in 2023, Data centers accounted for up to 1.5% of global electricity consumption and are responsible for 1% of energy-related greenhouse gas emissions.

As the Data Center Cooling Market evolves, energy inefficiencies arising from traditional cooling systems are becoming a significant concern. With data centers consuming vast amounts of energy, there's a growing demand for innovative, low-power cooling solutions to maintain optimal temperatures for IT equipment. This pressing need is driving the development of efficient cooling technologies within the industry.

Global Data Center Cooling Market Opportunity:

High-performance Computing Applications Presenting Lucrative Opportunities to the Market – High-performance computing (HPC) applications, including AI & machine learning, are driving the demand for effective cooling solutions in data centers. The implementation of liquid cooling technology is on the rise due to its efficient management of heat generated by intensive workloads. Data centers are continually aiming for greater computing power and performance. In the realm of High-Performance Computing Applications (HPC), the convergence of liquid cooling innovation with the burgeoning growth of HPC is driving significant advancements in the market for cooling systems within data centers. For instance:

• In December 2023, Sunon introduced a line of liquid cooling solutions for high-capacity data center GPU and CPU computing, specifically designed for edge, AI, and cloud servers to enhance performance and efficiency.

Thus, the integration of High-Performance Computing applications with efficient cooling technologies is essential for enhancing data center performance, reducing energy consumption, and promoting sustainability in the industry.

Global Data Center Cooling Market Challenge:

High Investment Costs of Data Center Cooling Infrastructures Impeding the Market Growth – The installation & maintenance of power and cooling infrastructures in data centers require a significant capital investment. Nowadays, these expenses are escalating to the same level as those associated with IT equipment within data centers. Also, due to the high cost involved, many organizations find it challenging to set up efficient cooling solutions for their data center operations, thereby hindering the growth potential of this sector.

Global Data Center Cooling Market Trend:

High Surge in Demand for Energy-efficient & Hybrid Cooling Solutions – A notable trend shaping the data center cooling industry is the increasing emphasis on energy efficiency and the uptake of hybrid cooling solutions. Operators are prioritizing cost reduction and environmental sustainability, driving the adoption of eco-friendlier technologies. Hybrid strategies, which blend conventional air cooling methods with innovative liquid-based systems, are gaining traction for their ability to strike a balance between cost-effectiveness and sustainability. This trend towards efficient alternatives not only ensures continuous market expansion but also effectively meets the evolving needs of modern data centers. In recent years, various advanced liquid cooling systems have been introduced in the marketplace due to the rising demand for energy-efficient cooling solutions for data centers. For instance,

• In January 2024, Aligned, a data center company, introduced DeltaFlow, a cutting-edge liquid cooling system tailored for high-density computing needs and supercomputers. The liquid cooling technology utilized in this data center is designed to effectively cool high densities of up to 300 kW per rack.

Thus, the surge in demand for energy-efficient and hybrid cooling solutions is poised to have a profoundly positive impact on the data center cooling market in the coming years.

Global Data Center Cooling Market (2024-30): Segmentation Analysis

The Global Data Center Cooling Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024-2030 at the global level. In accordance to the analysis, the market has been further classified as:

Based on Verticals:

• BFSI
• IT & Telecom
• Research & Educational Institutes
• Government & Defense
• Retail
• Energy
• Healthcare
• Others

In the Data Center Cooling Market, the Research & Educational Institutes segment is anticipated to hold the largest market share during the forecast period. The surge is due to various factors, such as the heightened utilization of data centers by research and educational institutes, increased expenditures on these facilities for technological advancements, and a pressing need to decrease carbon emissions while minimizing energy consumption. These influences have compounded with increasing pressure on existing infrastructure, spurred by the continuously evolving digital landscape, leading to an anticipated significant growth within the research and educational institutes segment in the foreseeable future.

Based on the Type of Data Center:

• Mid-sized Data Centers
• Enterprise Data Centers
• Large Data Centers

Enterprise Data Centers are expected to witness substantial market growth during the forecast period. Enterprise data centers, serving as centralized facilities for organizations and managed by trained personnel, house critical IT infrastructure such as servers, storage devices, and networking equipment among other computing resources. These highly significant locations are responsible for hosting and processing digital information necessary to ensure smooth enterprise operations in the current business landscape.  Eventually, the market share of enterprise data centers is expected to soar in the forecast period.

Global Data Center Cooling Market (2024-30): Regional Projection

Geographically, the Global Data Center Cooling Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

The largest share in the Data Center Cooling Market is held by Asia-Pacific, which exhibits clear dominance. The region's digitalization of business processes has shown tremendous growth owing to its ability to increase productivity and decrease errors caused typically through manual intervention. Furthermore, adoption rates have spiked due to migrating tasks onto cloud computing platforms for vast storage capabilities as well as down-scaled routine workload management activities.

The Asia-Pacific Data Center Cooling Market has witnessed an unprecedented surge in demand for temperature control solutions, fueled by the necessity for uninterrupted equipment operation. A noteworthy trend is the growing fascination with Internet of Things (IoT) technologies, providing advanced monitoring and management capabilities. This increasing adoption of IoT solutions is driving a substantial upswing in the sector, resulting in significant advancements across regional markets.

Global Data Center Cooling Industry- Recent Development:

• 2024: Modine announced its acquisition of the intellectual property and distinct assets of TMG Core for the expansion of its data center cooling business on a large scale. TMG Core specializes in single- and two-phase liquid immersion cooling technology tailored for data centers with demanding high-density computing needs.
• 2023: Vertiv, a leading provider of critical digital infrastructure and continuity solutions worldwide, has acquired CoolTera Ltd., which specializes in providing coolant distribution infrastructure for data center liquid cooling technology. This acquisition will reinforce Vertiv's capabilities to facilitate large-scale deployment of AI and further expand its ability to cater to the demands of global data center clients.
• 2023: STULZ GmbH announced the launch of its Micro Data Centre, a single rack, all-in-one micro data center solution that combines power protection and distribution, monitoring, cooling, and management with fire protection and security.

Gain a Competitive Edge with Our Global Data Center Cooling Market Report

• Global Data Center Cooling Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Data Center Cooling Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.