Canada Data Center Cooling Market Size
| Study Period | 2017 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.3 Billion |
| Market Size (2030) | USD 0.8 Billion |
| CAGR (2024 - 2030) | 20.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Canada Data Center Cooling Market Analysis
The Canada Data Center Cooling Market size is estimated at USD 0.3 billion in 2024, and is expected to reach USD 0.8 billion by 2030, growing at a CAGR of 20% 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 cooling market is expected to reach 1,700 MW by 2030.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 6 million sq. ft by 2030.
Planned Racks: The country's total number of racks to be installed is expected to reach 300 thousand units by 2030. Quebec is expected to house the maximum number of racks by 2030.
In 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 and Telecommunication Segment Holds the Majority Share
- With the ongoing expansion and enhancement of 5G networks, the stage is set for the rise of emerging edge applications. These applications demand swift, high-capacity data transfers and, in turn, produce substantial heat. In response, major service providers are pivoting toward advanced data center cooling solutions to bolster their automation capabilities.
- In May 2024, Telus announced a USD 73 billion investment over the next five years, focusing on bolstering its broadband and 5G networks across Canada. Of this, approximately USD 33 billion is earmarked for BC and Alberta, with BC set to receive a USD 17 billion boost, specifically for enhancing Telus' 5G network. Additionally, the company revealed plans to double its cell tower constructions in 2024 compared to 2023.
- According to Opensignal Limited, download speeds for Bell, Rogers, and Telus rose from 158.7 Mbps, 130.7 Mbps, and 138.3 Mbps, respectively, in February 2023 to 196.2 Mbps, 158.6 Mbps, and 169.2 Mbps, in February 2024.
- Telecommunications have evolved and started using hybrid cloud structures, combining 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 in the coming years.
- Furthermore, in response to the surging demand for cloud services, public players in the country are actively modernizing their offerings. Highlighting this trend, Oracle and Google Cloud unveiled a partnership in June 2024. This collaboration empowers customers to seamlessly integrate Oracle Cloud Infrastructure (OCI) with Google Cloud technologies, facilitating quicker application migrations and modernization. These developments underscore the escalating demand for cloud adoption in the market.
Liquid-based Cooling is Expected to be the Fastest Growing Segment
- In data centers, liquid cooling offers many benefits and is an attractive option for cooling computing environments with high performance. Liquid cooling appears 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.
- In terms of technology, liquid-based cooling is the fastest-growing segment in Canada. In liquid cooling technology, direct-to-chip held the maximum market share in 2023. The direct-to-chip sub-segment is expected to hold a significant share of the market over the forecast period. The past few years have noticed an escalating adoption of cloud services delivered by a network of highly competitive providers. Google Cloud, Microsoft Azure, Amazon Web Services, and IBM Cloud have expanded their operational capacities, generating more demand for direct liquid cooling solutions for data centers.
- In March 2024, Accelsius, known for its patented direct-to-chip liquid cooling systems that enhance high-performance computing and compute density for data center and edge computer operators, announced a strategic partnership with Equus Compute Solutions (ECS). This collaboration aims to address the growing demand for advanced liquid cooling solutions in data centers. As a component of Accelsius’ Accelerate Partner Program, this partnership facilitates the transition from air to liquid cooling. The program unites top-tier systems integrators, OEMs, cooling solution experts, and other IT providers across data centers in the United States and Canada.
- 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 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 affordable. Energy used for liquid cooling can be recycled to heat buildings and drinking water, while advanced artificial refrigerants can significantly reduce the carbon footprint of air conditioners.
- The country plans to develop more smart cities, integrating IoT, 5G, blockchain, AI, and other cutting-edge technologies, resulting in more significant data generation. For instance, as of January 2024, 95.5% of Canadian internet users accessed the web via mobile phones. Following closely, laptops and desktops, whether personal or employee-issued, emerged as the second most popular devices for online access.
- Moreover, the proportion of 5G users is projected to surge from 7% in 2021 to approximately 62% by 2025. This rise is set to drive both data consumption and the evolution of networks during the forecast period. As the market witnesses these advancements, data centers are expanding, leading to a heightened demand for DC cooling infrastructure in the country.
Canada Data Center Cooling Industry Overview
The Canadian data center cooling market is moderately fragmented. The upcoming DC construction projects in the country will increase the demand for data center cooling in the coming years. Major market players include CoolIT Systems, Nortek Air Solutions, Vertiv Group Corp., Schneider Electric SE, and Rittal GMBH & Co. KG. 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 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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CoolIT Systems
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Nortek Air Solutions
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Vertiv Group Corp.
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Schneider Electric SE
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Rittal GMBH & Co. KG
*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 Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Key Cost Considerations for Cooling
4.2.1 Analysis of the Key Cost Overheads Related to DC Operations with an Eye on DC Cooling
4.2.2 Comparative Study of the Cost and Operational Considerations Related to Each Cooling Technology Based on Key Factors such as Design Complexity, PUE, Advantages, Drawbacks, and Extent of Utilization of Natural Weather Conditions
4.2.3 Key Innovations and Developments in Data Center Cooling
4.2.4 Key Energy Efficiency Practices Adopted in Data Centers
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Emphasis on Energy Consumption Drives the Demand for the Market Studied
5.1.2 Growing Trend Toward Green Solutions Drives the Demand for the Market Studied
5.2 Market Challenges
5.2.1 Dynamic Nature of Regulations on Cooling Solutions
5.3 Market Opportunities
5.3.1 Growing Use of Single-phase Immersion Cooling
5.4 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN THE COUNTRY
6.1 Analysis of IT Load Capacity & Area Footprint of Data Centers (For the Period of 2017-2030)
6.2 Analysis of the Current DC Hotspots and Scope for Future Expansion in the Country
6.3 Analysis of Major Data Center Contractors and Operators in Country
7. MARKET SEGMENTATION
7.1 By Cooling Technology
7.1.1 Air-based Cooling
7.1.1.1 Chiller and Economizer
7.1.1.2 CRAH
7.1.1.3 Cooling Tower (Covers Direct, Indirect, and Two-stage Cooling)
7.1.1.4 Other Air-based Cooling Technologies
7.1.2 Liquid-based Cooling
7.1.2.1 Immersion Cooling
7.1.2.2 Direct-to-Chip Cooling
7.1.2.3 Rear-Door Heat Exchanger
7.2 By Type of Data Center
7.2.1 Hyperscale (Owned and Leased)
7.2.2 Enterprise (On-premise)
7.2.3 Colocation
7.3 By End-user Industry
7.3.1 IT and Telecom
7.3.2 Retail and Consumer Goods
7.3.3 Healthcare
7.3.4 Media and Entertainment
7.3.5 Federal and Institutional Agencies
7.3.6 Other End-user Industries
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 CoolIT Systems
8.1.2 Nortek Air Solutions
8.1.3 Vertiv Group Corp.
8.1.4 Schneider Electric SE
8.1.5 Rittal GMBH & Co. KG
8.1.6 Mitsubishi Electric Corporation
8.1.7 Johnson Controls International PLC
8.1.8 Eaton Corporation PLC
8.1.9 Munters Group
8.1.10 Alfa Laval AB
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Canada Data Center Cooling Industry Segmentation
Data center cooling is a system that helps maintain optimal operating temperatures in data center environments. It is critical, as data center facilities 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. 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 technology (air-based cooling [chiller and economizer, CRAH, cooling towers, and other air-based cooling technologies] and liquid-based cooling [immersion cooling, direct-to-chip cooling, and rear-door heat exchanger]), type of data center (hyperscale, enterprise, and colocation), and end-user industry (it and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries). The report offers market sizes and forecasts in terms of value (USD) for the above segments.
| By Cooling Technology | ||||||
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| By Type of Data Center | |
| Hyperscale (Owned and Leased) | |
| Enterprise (On-premise) | |
| Colocation |
| By End-user Industry | |
| IT and Telecom | |
| Retail and Consumer Goods | |
| Healthcare | |
| Media and Entertainment | |
| Federal and Institutional Agencies | |
| Other End-user Industries |
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 0.3 billion in 2024 and grow at a CAGR of 20% to reach USD 0.8 billion 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 0.3 billion.
Who are the key players in Canada Data Center Cooling Market?
CoolIT Systems, Nortek Air Solutions, Vertiv Group Corp., Schneider Electric SE and Rittal GMBH & Co. KG 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 0.24 billion. The report covers the Canada Data Center Cooling Market historical market size for years: 2017, 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.
