Data center cooling is crucial for enhancing operational efficiency and reducing cooling costs in data centers. Cooling systems provide thermal management solutions to ensure optimal operating temperature for servers and equipment. The market has witnessed significant growth due to rising deployment of modular and edge data centers across various industry verticals such as IT, telecom, healthcare, BFSI and others. Advances in cooling technologies including liquid cooling, indirect evaporative cooling, and immersion cooling have enabled higher power densities while lowering carbon footprint.
The Global Data Center Cooling Market is estimated to be valued at US$ 32.91 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the data center cooling are Air Enterprises, Asetek, Inc., Climaveneta, Coolcentric, Daikin Industries Ltd, Dell Technologies Inc., Fujitsu, Hitachi, Ltd., Johnson Controls, Liquid Cool Solutions Inc., Mitsubishi Electric Corp., Munters Group AB , Nortek Air Solutions, LLC, NTT Ltd., Rittal GmBH & Co. KG, Schneider Electric SE, STULZ GMBH, Telx Inc., and Vertiv Co. Growing cloud adoption across industries is fueling the need for enhanced data center capacity and efficient infrastructure for thermal management. This has propelled key players to offer advanced solutions to address rising rack densities, edge deployments, and sustainability goals of hyperscale operators. Technological advancements such as immersion and liquid cooling, free cooling, and adaptive capacity solutions have improved efficiency while optimizing performance.
Market Trends
Increasing rack densities: Data Center Cooling Market Size are adopting advanced servers and networking equipment featuring higher performance capabilities leading to increased rack densities. This has necessitated the deployment of scalable cooling infrastructure to optimize thermal management.
Sustainability initiatives: Hyperscale cloud and colocation providers are focused on sustainable growth through efficient infrastructure and renewable energy integration. This is augmenting the adoption of free cooling chillers, liquid immersion, adaptive capacity controls and predictive analytics.
Market Opportunities
Edge deployments: Rising deployment of edge infrastructure across retail, healthcare, manufacturing and cities is opening opportunities for modular cooling systems with flexible scalability.
AI/ML workloads: Growth in AI/ML, HPC and big data analytics is propelling the need for immersion and direct-to-chip cooling technologies to support high performance computing.
Impact of COVID-19 on Data Center Cooling Market Growth
The COVID-19 pandemic has adversely impacted the growth of the global data center cooling market during 2020. As data centers were declared non-essential services amid lockdowns across various regions, deployment and construction of new data center facilities were temporarily halted. This led to short term decline in demand for data center cooling solutions such as chillers, air conditioners, cooling towers, and CRAC & CRAH units. However, with a surge in remote working and online education, bandwidth consumption increased manifold which boosted investments in scaling up existing data center capacities.
As businesses shifted online during the pandemic, demand rose for public cloud services, content delivery networks and colocation facilities which require massive computing power and data storage. This posed new challenges for effective thermal management of overheating servers inside data halls. Various data center operators focused on deploying advanced cooling systems and upgrades to efficiently handle the additional heat loads. The need to enhance rack densities while reducing power usage effectiveness (PUE) further drove the adoption of innovative liquid cooling technologies.
Post pandemic, deployment of edge data centers and 5G infrastructure is expected to garner high demand. Hyperscale cloud providers and internet giants are investing heavily in building new sustainable mega data center parks worldwide. Rising carbon emission concerns are compelling operators to switch to free cooling methods and use renewable energy sources for power requirements. The focus on efficient utilization of space, power and water inside data centers will continue to boost the prospects of the cooling market in the coming years.
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