Europe Data Center Cooling Market Size & Share Analysis - Growth, Trends and Forecasts (2024 - 2029)

Europe Data Center Cooling Market Analysis

The Europe Data Center Cooling Market size is estimated at USD 7.5 billion in 2024, and is expected to reach USD 16.10 billion by 2029, growing at a CAGR of 16.5% during the forecast period (2024-2029).

The growing adoption of cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data center cooling in the region.

• Cooling technologies are usually selected based on the data centers' geographical location. As companies regularly seek to mitigate costs, energy-efficient cooling methods are being considered the potential alternatives to traditional cooling methods. The market's growth is also fueled by edge computing adoption and the increase in IoT devices.
• Developments in IT Infrastructure in emerging European countries such as Hungary, Greece, Poland, and Turkey are expected to increase the construction of hyperscale data center facilities with over 50 MW power capacity. The United Kingdom, Germany, and France had the highest number of data centers across Europe, and market players can target these countries to invest in their new technologies. Also, they can form partnerships with upcoming data center organizations to cater to market requirements at a competitive price, aiding the growth of the European data center cooling market over the forecast period.
• The cooling systems are responsible for almost 40% of the data center power consumption. Companies are trying to tackle this issue by setting up green data centers. The growing trends toward deploying green data centers for storing, managing, and distributing information have helped many software companies reduce energy consumption and total energy costs. For example, green technologies, such as Immersion4 in combination with AI, are changing how data centers operate to make them more sustainable with efficient energy usage and low carbon footprint. Such green data centers' emergence drives the demand for cooling units in the region.
• Data center cooling systems require a high initial investment to set up, which could restrain the market. However, many local vendors and market players are developing innovative solutions by modifying the existing data centers at a low cost to reduce the cost of setting up a new unit. Additionally, reduced carbon emission and cooling issues during power outages could hamper the growth of the market.
• The COVID-19 pandemic impacted the market owing to lockdowns, shortage of devices, and supply chain disruptions to set up new data centers and update the existing data centers. On the other hand, there is a massive rise in data volume and mobile data usage in European countries, which is anticipated to boost the setup of data centers across Europe. This will propel the market growth over the forecast period. Also, government support is projected to boost the development of the data center cooling market over the forecast period.

Europe Data Center Cooling Market Trends

The Retail Segment is Expected to Hold a Significant Market Share

Europe Data Center Cooling Industry Segmentation

Data center cooling refers to the collective equipment, tools, techniques, and processes that ensure an ideal operating temperature within a data center facility. With increasing capacity and higher density, there is an increasing need for IT equipment with energy-efficient cooling. The benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to boost the growth of the market directly in various fields, such as IT, BFSI, telecommunication, etc., in the region.

The European data center cooling market is segmented by cooling technology (air-based cooling (CRAH, chiller and economizer, cooling tower (direct, indirect, and two-stage cooling), and others)) and liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger)), end-user vertical (IT & telecom, retail & consumer goods, healthcare, media & entertainment, federal & institutional agencies, and other end users), and geography (the United Kingdom, Germany, Russia, Denmark, Norway, the Netherlands, Spain, Poland, Switzerland, Austria, Belgium, France, Italy, Ireland, Sweden, and the Rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.