Europe Data Center Cooling Market Size (2024 - 2029)

The Europe Data Center Cooling Market is poised for significant expansion, driven by the increasing adoption of cloud computing, stringent government regulations for data security, and substantial investments from domestic players. The market's growth is further supported by the rise of edge computing and IoT devices, alongside the development of IT infrastructure in emerging European countries. While the initial investment for cooling systems can be high, innovative solutions are being developed to mitigate costs. The shift towards green data centers is also contributing to the demand for advanced cooling technologies. Despite challenges such as the COVID-19 pandemic and supply chain disruptions, the growing data volume and government support are expected to propel the market's growth trajectory.

Market Size of Europe Data Center Cooling Industry

Europe Data Center Cooling Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 7.5 Billion
Market Size (2029) USD 16.10 Billion
CAGR (2024 - 2029) 16.50 %
Market Concentration Low

Major Players

Europe Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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.

By Cooling Technology (Key trends, market size estimates & projections for the period of 2022-2029 and future outlook)
Air-based Cooling
CRAH
Chiller and Economizer
Cooling Tower (covers direct, indirect & two-stage cooling)
Others
Liquid-based Cooling
Immersion Cooling
Direct-to-Chip Cooling
Rear-Door Heat Exchanger
By End-user Vertical
IT & Telecom
Retail & Consumer Goods
Healthcare
Media & Entertainment
Federal & Institutional agencies
Other End Users
By Country***
United Kingdom
Germany
Russia
Denmark
Norway
Netherlands
Spain
Poland
Switzerland
Austria
Belgium
France
Italy
Ireland
Sweden
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Europe Data Center Cooling Market Size Summary

The European data center cooling market is poised for significant growth, driven by the increasing adoption of cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The demand for cooling solutions is further bolstered by the rise of edge computing and the proliferation of IoT devices. Geographical factors play a crucial role in the selection of cooling technologies, with energy-efficient methods gaining traction as companies strive to reduce costs. The construction of hyperscale data centers in emerging European countries, alongside the high concentration of data centers in the United Kingdom, Germany, and France, presents lucrative opportunities for market players. Partnerships with new data center organizations and the deployment of green technologies are expected to enhance the sustainability and efficiency of cooling systems, addressing the substantial power consumption associated with data center operations.

The market landscape is characterized by a fragmented structure, with major players like IBM, Fujitsu, Hitachi, and Schneider Electric driving innovation and investment. The increasing volume of Big Data, particularly in the retail sector, is propelling the need for enhanced data storage and security solutions, thereby boosting the demand for data center cooling systems. Foreign investments in European countries, driven by the need to comply with local data protection regulations, are further stimulating market growth. Despite challenges such as high initial setup costs and potential cooling issues during power outages, the market is expected to expand, supported by government initiatives and the growing trend towards green data centers. Innovations in cooling technologies, such as modular and liquid cooling solutions, are set to meet the high-density compute requirements of next-generation applications, including artificial intelligence and high-performance computing.

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Europe Data Center Cooling Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview (Coverage: A detailed analysis of the current regional trends related to Data Center Cooling are included in this section)

    2. 1.2 Key cost considerations for Cooling

      1. 1.2.1 Analysis of the key cost overheads related to DC operations with an eye on DC Cooling

      2. 1.2.2 Key innovations and developments in Data Center Cooling

      3. 1.2.3 Key energy efficiency practices adopted in Data Centers

  2. 2. DATA CENTER COOLING MARKET SEGMENTATION

    1. 2.1 By Cooling Technology (Key trends, market size estimates & projections for the period of 2022-2029 and future outlook)

      1. 2.1.1 Air-based Cooling

        1. 2.1.1.1 CRAH

        2. 2.1.1.2 Chiller and Economizer

        3. 2.1.1.3 Cooling Tower (covers direct, indirect & two-stage cooling)

        4. 2.1.1.4 Others

      2. 2.1.2 Liquid-based Cooling

        1. 2.1.2.1 Immersion Cooling

        2. 2.1.2.2 Direct-to-Chip Cooling

        3. 2.1.2.3 Rear-Door Heat Exchanger

    2. 2.2 By End-user Vertical

      1. 2.2.1 IT & Telecom

      2. 2.2.2 Retail & Consumer Goods

      3. 2.2.3 Healthcare

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Federal & Institutional agencies

      6. 2.2.6 Other End Users

    3. 2.3 By Country***

      1. 2.3.1 United Kingdom

      2. 2.3.2 Germany

      3. 2.3.3 Russia

      4. 2.3.4 Denmark

      5. 2.3.5 Norway

      6. 2.3.6 Netherlands

      7. 2.3.7 Spain

      8. 2.3.8 Poland

      9. 2.3.9 Switzerland

      10. 2.3.10 Austria

      11. 2.3.11 Belgium

      12. 2.3.12 France

      13. 2.3.13 Italy

      14. 2.3.14 Ireland

      15. 2.3.15 Sweden

Europe Data Center Cooling Market Size FAQs

The Europe Data Center Cooling Market size is expected to reach USD 7.5 billion in 2024 and grow at a CAGR of 16.5% to reach USD 16.10 billion by 2029.

In 2024, the Europe Data Center Cooling Market size is expected to reach USD 7.5 billion.

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