Canada Data Center Cooling Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 345.5 Million |
| Market Size (2030) | USD 680.20 Million |
| CAGR (2024 - 2030) | 12.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Canada Data Center Cooling Market Analysis
The Canada Data Center Cooling Market size is estimated at USD 345.5 million in 2024, and is expected to reach USD 680.20 million by 2030, growing at a CAGR of 12.5% during the forecast period (2024-2030).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investments by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The IT load capacity of the Canadian data center rack market is expected to reach 1,150 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.1 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 289,000 units by 2029. Quebec is expected to house the maximum number of racks by 2029.
- On Canada's east and west coasts, average high temperatures are recorded in the low 20°C, while between the coasts, the average summer high temperature varies from 25 °C to 30 °C, with temperatures in some interior locations occasionally exceeding 40 °C. Depending upon climatic conditions, DC cooling is done in the DC facilities.
- Planned Submarine Cables: There are close to 16 submarine cable systems connecting Canada, and many are under construction. One such submarine cable, which is estimated to start service in 2025, is Sednalink Fibre; it stretches over 2,104 km with landing points from Goose Bay, Newfoundland, Canada, to Iqaluit, Nunavut, Canada.
Canada Data Center Cooling Market Trends
The IT & Telecommunication Segment Holds the Majority Share
- The COVID-19 pandemic impacted companies that entered the digital transformation early, either by offering digital products and services or by leveraging digital processes, more economically than their peers that gradually embraced digital transformation.
- In the early days of the pandemic, after years of increasing adoption, public cloud adoption became mainstream. Canada's public cloud market revenues are expected to reach an amount of USD 5,213.5 million, an increase of 46.42%, from 2023 to 2027. Revenue is expected to grow to USD 16.4 billion by 2027 for the fourth year in a row. The public cloud market revenue has increased steadily in recent years.
- Cloud storage in Canada is growing due to the growing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobiles.
- Cloud infrastructure offers capabilities such as increased scalability and flexibility to offer minimal downtime. Enterprises are migrating from traditional complex infrastructures to cloud infrastructures, and data center usage is expected to increase during the forecast period.
- Telecommunications have evolved and started using a hybrid cloud structure, which combines both public and private cloud structures. The usage of this hybrid cloud structure helps telecommunication companies manage the sudden surge in traffic. The implementation of hybrid cloud services helps the telecom industry deploy its cloud services instantly, leading to lower downtime. The increased bandwidth speeds raised data consumption on mobiles from 1.5 GB in 2016 to 5.2 GB in 2023; the consumption is expected to reach around 8.6 GB by 2029. Such instances in the market are expected to create more need for data centers, boosting the demand for data center cooling infrastructure manufacturers in the coming years.
Liquid-based Cooling is Expected to Be the Fastest Growing Segment
- In data centers, liquid cooling offers many benefits, and it is an attractive option for cooling computing environments with high performance. The use of liquid cooling has been shown to be more energy efficient compared to conventional air conditioning. It reduces the need for overcooling and improves the energy efficiency of data centers by providing precise temperature control.
- Technologies such as Artificial Intelligence and Machine Learning are integrated into liquid cooling systems to optimize cooling efficiency and anticipate maintenance needs. They facilitate the efficient operation of data centers and help to reduce their downtime.
- Technological advancements have helped reduce the water consumption of data centers by more than 15% in tropical climates and 80% in green areas, making liquid cooling easier to maintain, scale up, or be affordable. Energy used for liquid cooling may be recycled to heat buildings and drinking water, while advanced artificial refrigerants can significantly reduce the carbon footprint of air conditioners.
- Liquid cooling takes advantage of the space constraints and superior heat transfer properties of water or other liquids to provide efficient and cost-effective cooling of high-density racks up to 3,000 times more efficiently than air. Long proven in mainframe and gaming applications, liquid cooling is increasingly being used to protect rack servers in regional data centers.
- The country plans to develop more smart cities in the future, integrating IoT, blockchain, AI, and other cutting-edge technologies, resulting in more significant data generation. According to the Government of Canada's Smart Cities Challenge launched in 2017, more than 225 municipalities expressed an inclination to explore the plan's advantages by filing their applications, demonstrating interest in developing more smart regions in the future.
- The above instances would further be bolstered by the emergence of 5G services in smartphones and other faster network technologies, promoting wider deployment of smart devices controlled by apps in smartphones. The number of 5G users is expected to increase from 7% in 2021 to about 62% by 2025, further contributing to data consumption and network evolution over the forecast period. Such improvements in the market propel the growth of data centers and, consequently, the demand for DC cooling infrastructure in the country.
Canada Data Center Cooling Industry Overview
The upcoming DC construction projects in the country will increase the demand for data center cooling in the coming years. The Canadian data center cooling market is semiconsolidated. Major market players include Rittal GMBH & Co.KG, Schneider Electric SE, Vertiv Group Corp., Mitsubishi Electric Hydronics & IT Cooling Systems SpA, and Asetek A/S. These major players, with a prominent market share, focus on expanding their regional customer base.
- April 2024: Carrier Global Corporation partnered with Strategic Thermal Labs to develop direct-to-chip cooling technology. Under this partnership, Carrier will leverage the advancement in direct-to-chip technology and incorporate it into the data center cooling solutions.
- December 2023: Vertiv completed the acquisition of Cooltera Ltd, a manufacturer of coolant distribution units (CDU) and secondary fluid networks (SFN). This acquisition is expected to improve the existing DC cooling solutions offered by the company.
Canada Data Center Cooling Market Leaders
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Rittal GMBH & Co.KG
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Schneider Electric SE
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Vertiv Group Corp.
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Mitsubishi Electric Hydronics & IT Cooling Systems S.p.A.
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Asetek A/S
*Disclaimer: Major Players sorted in no particular order
Canada Data Center Cooling Market News
- March 2024: German heat exchanger manufacturer Kelvion and US immersion cooling company Rosseau announced a partnership to deliver enhanced immersion cooling solutions for the high-performance computing (HPC) market.
- January 2024: Data center firm Aligned launched a new liquid cooling system called DeltaFlow. The liquid cooling technology is designed to support high-density computing requirements and supercomputers and can cool densities up to 300 kW per rack. The new DeltaFlow system works simultaneously with Aligned's air-cooled Delta technology, enabling no change in power delivery or existing data hall temperatures.
Canada Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Trend of High-Performance Computing across Europe
4.2.2 Growing Rack Power Density
4.3 Market Restraints
4.3.1 High Initial Investments
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Cooling Technology
5.1.1 Air-based Cooling
5.1.1.1 CRAH
5.1.1.2 Chiller and Economizer
5.1.1.3 Cooling Tower
5.1.1.4 Others
5.1.2 Liquid-based Cooling
5.1.2.1 Immersion Cooling
5.1.2.2 Direct-to-Chip Cooling
5.2 End User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End User
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Stulz GmbH
6.1.2 Rittal GMBH & Co. KG
6.1.3 Schneider Electric SE
6.1.4 Vertiv Group Corp.
6.1.5 Mitsubishi Electric Hydronics & IT Cooling Systems SpA
6.1.6 Asetek A/S
6.1.7 Johnson Controls International PLC
6.1.8 Fujitsu General Limited
6.1.9 Airedale International Air Conditioning
6.1.10 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Canada Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. This is important because data centers house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The Canadian data center cooling market is segmented by cooling technology (air-based cooling (CRAH, chillers and economizers, cooling towers, and others), liquid-based cooling (immersion cooling and direct-to-chip cooling), and evaporative cooling) and end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Cooling Technology | ||||||
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| End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End User |
Canada Data Center Cooling Market Research FAQs
How big is the Canada Data Center Cooling Market?
The Canada Data Center Cooling Market size is expected to reach USD 345.5 million in 2024 and grow at a CAGR of 12.5% to reach USD 680.20 million by 2030.
What is the current Canada Data Center Cooling Market size?
In 2024, the Canada Data Center Cooling Market size is expected to reach USD 345.5 million.
Who are the key players in Canada Data Center Cooling Market?
Rittal GMBH & Co.KG, Schneider Electric SE, Vertiv Group Corp., Mitsubishi Electric Hydronics & IT Cooling Systems S.p.A. and Asetek A/S are the major companies operating in the Canada Data Center Cooling Market.
What years does this Canada Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Canada Data Center Cooling Market size was estimated at USD 302.31 million. The report covers the Canada Data Center Cooling Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Canada Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Canada Data Center Cooling Industry Report
Statistics for the 2024 Canada Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Data Center Cooling analysis includes a market forecast outlook for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
