Data Center Cooling Market by Solution (Air Conditioning, Chilling Unit, Cooling Tower, Economizer System, Liquid Cooling System, Control System), Service, Type of Cooling, Data Center Type, Industry, & Geography - Global Forecast to 2030
The data center cooling market is projected to grow from USD 12.7 billion in 2023 to USD 29.6 billion by 2030, at a CAGR of 12.8% from 2023 to 2030. The major reason for the growth of the data center cooling market is the increasing amount of data created and used worldwide. With the exponential rise in data-intensive applications, cloud computing, and the Internet of Things (IoT), data centers face increased workloads, necessitating efficient and advanced cooling solutions. The growing reliance on digital services and the continuous expansion of IT infrastructure fuels the demand for cooling technologies that ensure optimal performance, energy efficiency, and environmental sustainability. This overarching need to maintain and enhance data center operations in the face of expanding digital ecosystems is the major impetus for the Data Center Cooling Market.
Attractive Opportunities in the Data Center Cooling Market
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Data Center Cooling Market Dynamics
Driver: Improving efficiency in data centers
The data centers in most industry verticals face the increasing need to improve processing capabilities, handle the rapidly growing data traffic, and improve transaction processing demands. These processing capabilities are limited by constraints related to power, data center infrastructural design, cooling, and space requirements. Data centers, therefore, need solutions that can provide enhanced overall operational efficiency to curb the effect of power/cooling limitations and rising space costs. Furthermore, with the expanding IT industry worldwide, the increasing internet connectivity, and the 5G internet era, data centers are bound to increase in density, size, and numbers. This presents an opportunity for data center cooling manufacturers to provide better cooling solutions that reduce the overall power consumption of data centers.
Restraint: High investment costs
Data center power and cooling infrastructures consume a considerable portion of the capital required to set up data centers. They are increasingly becoming as expensive as the IT equipment within data centers. The high cost of setting up and maintaining cooling solutions is a significant restraint for the data center cooling market’s growth. However, certain vendors are coming up with innovative solutions that offer the setting up of data center cooling systems with minor changes to the existing data center setups and at a relatively low cost. Widespread implementation of such solutions may initially attract reluctant organizations to adopt data center cooling solutions.
Opportunity: Growing requirement for modular data center cooling approach
Data center stakeholders often need help expanding infrastructure for additional cooling units, increasing overall costs. To tackle this, the rise of pre-engineered cooling modules, acting as plug-in systems, is evident. These modules deliver up to 30% cost savings and operate 60% faster, proving especially beneficial for space and budget-constrained data centers. Streamlining planning, enhancing reliability, improving agility, ensuring swift deployment, and boosting overall efficiency, these cooling modules are expected to be adopted by vendors seeking a competitive edge in the data center cooling market.
Challenge: Cooling challenges during power outage
High-density and high-power data centers face a rapid temperature surge during power outages. Typically equipped with Uninterruptible Power Supply (UPS) systems that keep servers running while cooling temporarily halts, this setup elevates heat levels. According to Intel, data centers can reach 105 degrees Fahrenheit in 18 seconds and 135 degrees Fahrenheit in 35 seconds during a power outage. The swift temperature rise threatens IT equipment, resulting in potential financial losses for data center owners.
Data Center Cooling: Ecosystem
Based on the type of cooling, the row/rack-based cooling is projected to grow at the highest CAGR during the forecast period.
Row/rack-based cooling is anticipated to grow at the highest CAGR based on the type of cooling. The growth of the row/rack-based cooling data center cooling market is driven by its precision cooling capabilities, scalable design, and adaptability to high-density computing, which make it a preferred choice for data center operators seeking efficient and future-proof cooling solutions. Row/rack-based cooling's quick setup and cost-effectiveness are vital in growing the data center cooling market.
Based on Industry, Research and Academic segment is projected to grow at the highest CAGR during the forecast period.
In the data center cooling market, the research and academic segment has the highest CAGR during the forecast period; this growth is driven by several factors, including the increasing usage of data centers in the research and academic segment, rising spending on data centers, technological advancements, and the need to reduce carbon emissions and minimize energy consumption. These factors, combined with the increasing strain on data center infrastructure due to the evolving digital ecosystem, have contributed to the significant growth projected for the research and academic segment in the data center cooling market.
Based on data center type, the mid-sized data centers segment is projected to grow at the highest CAGR during the forecast period.
Mid-sized data centers are anticipated to grow at the highest CAGR based on the data center type. These data centers cater to the growing needs of medium-sized enterprises embracing digitalization, requiring efficient cooling solutions. Their focus on affordability and compliance with regulations make them a key driver in the market's rapid growth, playing a pivotal role in meeting the evolving demands of the data center cooling market.
Asia Pacific is projected to grow at the highest CAGR during the forecast period.
The rapid expansion of data center infrastructure in the Asia Pacific is a significant driver for the growth of data center cooling. As businesses and governments in the region invest heavily in digital transformation, widespread adoption of cloud computing services, and AI-driven applications, the demand for efficient cooling solutions that can handle the heat generated by advanced computing systems is on the rise. With its ability to provide adequate heat dissipation and energy efficiency, data center cooling is well-suited to meet the evolving needs of data centers in Asia Pacific.
Source: Expert Interviews, Secondary Research, Whitepapers, Journals, Magazines, and MarketsandMarkets Analysis
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Key Market Players
Some of the key players in the market include Schneider Electric (France), Fujitsu (Japan), Daikin Industries Ltd. (Japan), Hitachi Energy Ltd. (Japan), and Johnson Controls, Inc. (US).
Read More: Data Center Cooling Companies
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Report Metric |
Details |
Market Size Available for Years |
2018 to 2030 |
Base Year Considered |
2022 |
Forecast Period |
2023–2030 |
Forecast Units |
Value (USD Million) |
Segments Covered |
Component, Solution, Services, Type of cooling, Data center type, industry and Region |
Geographies Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
Companies Covered |
The major market players include Asetek (Denmark), STULZ GmbH (Germany), Coolcentric (US), Rittal GmbH & Co. KG (Germany), Nortek Air Solutions, LLC (US), Schneider Electric SE (France), and Vertiv Holdings Co. (US), and others. |
This research report categorizes the data center cooling market based on application, end-use industry, and region.
Based on Component, the data center cooling market has been segmented as follows:
- Solution
- Services
Based on Solution, the data center cooling market has been segmented as follows:
- Air Conditioning
- Chilling Units
- Cooling Towers
- Economizer Systems
- Liquid Cooling Systems
- Control Systems
- Others (Pumping Units, Humidifiers, and Air Coolers)
Based on Services, the data center cooling market has been segmented as follows:
- Consulting
- Installation & Deployment
- Maintenance & Support
Based on Type of Cooling, the data center cooling market has been segmented as follows:
- Room-based Cooling
- Row/Rack-based Cooling
Based on Data Center Type, the data center cooling market has been segmented as follows:
- Large Data Centers
- Enterprise Data Centers
- Mid-sized Data Centers
Based on Industry, the data center cooling market has been segmented as follows:
- BFSI
- IT & Telecom
- Research & Academic
- Government & Defense
- Retail
- Energy
- Manufacturing
- Healthcare
- Others (Media & Entertainment and Transportation & Logistics)
Based on the region, the data center cooling market has been segmented as follows:
-
North America
- US
- Canada
-
Europe
- Germany
- UK
- Netherlands
- France
- Italy
- Rest of Europe (Russia, Turkey, Spain, the Czech Republic, Belgium, and Denmark)
-
Asia Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific (Australia, Singapore, Malaysia, Thailand, Indonesia, Vietnam, and New Zealand)
-
Latin America
- Brazil
- Mexico
- Rest of Latin America (Chile, Argentina, and Colombia)
-
Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa (Iran, Bahrain, Qatar, Turkey, and Jordan)
Recent Developments
- In December 2023, Vertiv, a global provider of critical digital infrastructure and continuity solutions, announced the acquisition of CoolTera Ltd., a provider of coolant distribution infrastructure for data center liquid cooling technology. The acquisition will strengthen Vertiv's capabilities to support the deployment of AI at scale and enhance the company's ability to serve the needs of global data center customers. CoolTera provides liquid cooling infrastructure solutions, designing and manufacturing coolant distribution units (CDU), secondary fluid networks (SFN), and manifolds for data center liquid cooling solutions.
- In May 2023, Fujitsu and Microsoft announced a global partnership to enable "sustainability transformation." and to help businesses move their workloads to the cloud. Fujitsu will provide its expertise in data center infrastructure, while Microsoft will provide its cloud computing platform, Azure. This partnership will give businesses a comprehensive solution to modernize their IT infrastructure.
- In November 2023, Schneider Electric and Compass Datacenters expanded their partnership with a USD 3 billion multi-year agreement to manufacture and deliver prefabricated modular data center solutions. The partnership aims to integrate their respective supply chains to provide finished goods more quickly, predictably, and cheaply.
Frequently Asked Questions (FAQ):
What is Data center Cooling?
Data center cooling refers to managing and regulating temperature and humidity within data centers to optimize the performance and longevity of IT equipment. Efficient cooling is crucial for preventing overheating and ensuring the reliable operation of servers, storage, and networking components. Innovative technologies, such as precision cooling systems and modular cooling solutions, enhance energy efficiency and reduce environmental impact in data center cooling practices.
What is the current size of the global data center cooling market?
The global data center cooling market is estimated to be USD 12.7 billion in 2023 and is projected to reach USD 29.6 billion by 2030, at a CAGR of 12.8%.
Who are the winners in the global data center cooling market?
Companies such as Schneider Electric (France), Fujitsu (Japan), Daikin Industries Ltd. (Japan), Hitachi Energy Ltd. (Japan), and Johnson Controls, Inc. (US) are the leading players. These players have adopted the strategies of expansions, agreements, mergers & acquisitions, partnerships, new product launches, joint ventures, investments & contracts, collaborations, and new technology & new process developments to increase their presence in the global market.
What are the key regions in the global data center cooling market?
In terms of region, the highest share was observed to be in Asia Pacific. As businesses and governments in the region invest heavily in digital transformation, widespread adoption of cloud computing services, and AI-driven applications, the demand for efficient cooling solutions that can handle the heat generated by advanced computing systems is on the rise.
What is the major type of cooling used in the global market?
The room-based cooling data center cooling market has witnessed notable growth as per value due to several factors that make it a solution for cooling high-performance computing systems. .
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The study involved four major activities in estimating the current data center cooling market size—exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and measures with industry experts across the value chain of data center cooling through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the size of the segments and sub-segments of the market.
Secondary Research
The research methodology used to estimate and forecast the access control market begins with capturing data on the revenues of key vendors in the market through secondary research. In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, Factiva, World Bank, and Industry Journals, were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; notifications by regulatory bodies; trade directories; and databases. Vendor offerings have also been taken into consideration to determine market segmentation.
Primary Research
The data center cooling market comprises several stakeholders in the supply chain, such as manufacturers, equipment manufacturers, traders, associations, and regulatory organizations. The demand side of this market is characterized by the development of various end-use industries. Various primary sources from the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of the primary respondents:
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Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the total size of the data center cooling market. These methods were also used extensively to determine the market size of various segments. The research methodology used to estimate the market size included the following:
- The key players were identified through extensive primary and secondary research.
- The value chain and market size of the data center cooling market, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
Global Data Center Cooling Market Size: Bottom-Up Approach
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Global Data Center Cooling Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The market size was calculated globally by summing up the country-level and regional-level data.
Market Definition
The global data center cooling market encompasses solutions and technologies designed to manage and regulate the temperature within data centers, ensuring optimal performance and energy efficiency. This includes various cooling methods such as air conditioning, liquid cooling, and emerging innovations aimed at addressing the escalating heat generated by modern computing equipment. As the demand for high-performance computing continues to rise, the data center cooling market is witnessing significant growth, driven by the imperative to maintain stable operating conditions and reduce environmental impact.
Key Stakeholder
- Data center manufacturers
- Distributors and Suppliers of data center cooling.
- Associations and Industrial Bodies such as The American National Standards Institute (ANSI), The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), The National Electrical Manufacturers Association (NEMA), The Telecommunication Industry Association (TIA), The Canadian Standards Association Group (CSA Group), and Others
- NGOs, Governments, Investment Banks, Venture Capitalists, and Private Equity Firms
Report Objectives:
- To define, describe, and forecast the size of the global data center cooling market in terms of value
- To provide detailed information regarding the key factors, such as drivers, restraints, opportunities, and industry-specific challenges, influencing the growth of data center cooling market
- To analyze and forecast the size of various segments (component, solution, services, type of cooling, data center type & industry) of the data center cooling market based on five major regions—North America, Europe, Asia Pacific, Latin America, Middle East & Africa—along with key countries in each of these regions
- To analyze recent developments and competitive strategies, such as expansions, new product developments, partnerships, and acquisitions, to draw the competitive landscape of the market
- To strategically profile the key players in the market and comprehensively analyze their core competencies
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the data center cooling market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Growth opportunities and latent adjacency in Data Center Cooling Market