Germany Data Center Cooling Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.51 Billion |
| Market Size (2030) | USD 1.14 Billion |
| CAGR (2024 - 2030) | 14.30 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Germany Data Center Cooling Market Analysis
The Germany Data Center Cooling Market size is estimated at USD 0.51 billion in 2024, and is expected to reach USD 1.14 billion by 2030, growing at a CAGR of 14.30% during the forecast period (2024-2030).
- The German government passed a draft of the Energy Efficiency Act in April 2023, which is now being debated in parliament. Section four of the draft is dedicated in detail to new requirements for the energy efficiency of data centers. According to the draft, newly built data centers must comply with energy efficiency standards, ensure a minimum temperature for air cooling, and use the waste heat they generate.
- The upcoming IT load capacity of the German data center market is expected to reach more than 1,900 MW by 2030. The country's construction of raised floor area is expected to increase to more than 11.8 million sq. ft by 2030.
- The country's total number of racks to be installed is expected to reach more than 589K units by 2030. Frankfurt is expected to house the maximum number of racks by 2030. Close to 7 submarine cable systems are connecting Germany, and many are under construction.
- In terms of development, in July 2023, Prysmian Group inked a service level agreement with the German-Dutch transmission system operator TenneT to provide nearshore and offshore cable inspection, maintenance, and repair services for TenneT's HVDC and HVAC submarine power cables in the North Sea. The agreement will be fulfilled in partnership with N-Sea.
Germany Data Center Cooling Market Trends
IT and Telecom to Hold Significant Share
- To oversee and champion digital transformation, the telecommunications industry is leaning toward institutionalization, positioning this evolution as a cornerstone for nurturing the digital economy and society. In Germany, the telecommunications industry grapples with a pressing issue: network congestion. As digital technologies surge and the appetite for high-speed internet grows, the current infrastructure struggles to keep pace. Consequently, this scenario is poised to spur a heightened demand for data center construction and innovative cooling solutions.
- Germany is actively addressing these challenges. A key strategy involves investing in new infrastructure, including fiber-optic cables and 5G networks. These advanced technologies promise faster speeds and increased capacity, effectively alleviating network congestion.
- Regulatory and policy measures can effectively tackle network congestion. A case in point is Germany's national broadband strategy, introduced by the government, which targets universal high-speed internet access for its citizens by 2025. The strategy encompasses funding for infrastructure projects, including data centers, and initiatives designed to foster competition among telecom providers.
- In 2024, Deutsche Telekom plans to extend its services to an additional 2.5 million customers annually. The company targets achieving 60% fiber-to-premises (FTTP) coverage on its infrastructure by 2030. This expansion is driving a significant surge in network traffic, consequently boosting the demand for servers and cooling solutions.
Liquid Cooling to Hold Significant Growth
- As data centers evolve, efficient cooling solutions become paramount to ensure optimal performance and manage the rising heat loads from contemporary IT equipment. Liquid cooling systems have emerged as a prominent technology in this domain.
- Air cooling alone cannot ensure the reliability of IT systems in facilities with exceptionally high-density racks, typically exceeding 30 kW, regardless of their age or optimization. In these facilities, rack power demands are nearing 20 kW, and companies are targeting 50 kW or higher. Therefore, liquid cooling is transitioning from an option to an absolute necessity. Notably, facilities like Cyrusone's Frankfurt 5 and Interxion's FRA-17, both under construction, are designed to accommodate this high rack density.
- In May 2023, a new draft proposed reducing heat reuse mandates, starting with a 10% heat reuse target in 2026 and ramping up to 20% by 2028. The GDA highlighted the need for adjustments, pointing out the variability in waste heat demand and the challenge of siting data centers near heating networks. The forthcoming act is poised to eliminate the stipulation mandating all data centers be within 5 km of a heating network. Instead, data centers can meet the requirement by equipping new facilities with a heat transfer station, making them ready to offer waste heat. However, achieving this will necessitate robust cooling solutions, like water-based cooling, to ensure stability during heat generation and transfer.
- Moreover, cloud infrastructure allows users to retrieve their files from anywhere in the world. Approximately 83% of companies in Germany utilize cloud services. Among these, 46% have reached an advanced stage of cloud implementation, 38% are just starting, and the remaining 16% have yet to adopt cloud solutions. As cloud infrastructure expands, it is anticipated that the demand for data centers will rise, subsequently boosting the need for water-cooling solutions.
Germany Data Center Cooling Industry Overview
The German data center cooling market exhibits a moderate level of consolidation among key industry players, having sharpened their competitive edge in recent years. Notable market leaders in this segment include Alfa Laval AB, STULZ GmbH, Schneider Electric SE, Vertiv Group Corp., and Daikin Applied Europe SpA. These industry giants, boasting significant market shares, are actively engaged in expanding their customer base throughout the region. Their growth strategies primarily hinge on strategic collaborative efforts aimed at enhancing market share and overall profitability. Moreover, companies such as Schneider Electric SE and Vertiv Group Corp. offer liquid and air-based cooling products.
Germany Data Center Cooling Market Leaders
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Stulz GmbH
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Schneider Electric SE
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Vertiv Group Corp.
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Alfa Laval AB
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Daikin Applied Europe S.p.A.
*Disclaimer: Major Players sorted in no particular order
Germany Data Center Cooling Market News
- May 2024: Carrier Germany showcased its comprehensive lineup of devices and services to ensure sustainable and efficient air conditioning for data centers.
- March 2024: Carrier unveiled a new line of high-performance chillers tailored for data centers. These chillers aim to minimize energy consumption and carbon emissions while lowering operational costs for users.
Germany Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption 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, 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 Innovative Data-Centre Cooling Technologies To Drive Market Growth
5.1.2 Increasing Data Center Demand To Drive Market Growth
5.2 Market Challenges
5.2.1 Higher Energy Consumption And Water Scarcity For Data Center Cooling To Hinder Market Growth
5.3 Market Opportunities
5.3.1 Sustainability and Energy Efficient Data Center Cooling Solutions To Provide Market Opportunity
5.4 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN GERMANY
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 Germany
6.3 Analysis of major Data Center Contractors and Operators in Germany
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
7.2.1 Hyperscalers (owned & 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 STULZ
8.1.2 Schneider Electric SE
8.1.3 Vertiv Group Corp.
8.1.4 Alfa Laval AB
8.1.5 Munters Corporation
8.1.6 Systemair Home AB
8.1.7 Daikin Applied Europe SpA
8.1.8 Carrier Global Corporation
8.1.9 Legrand Group
8.1.10 Swegon Germany GmbH
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Germany Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling 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. 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 German data center cooling market is segmented into technology (air-based cooling [chillers and economizers, 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 (hyperscaler, 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 market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Cooling Technology | ||||||
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| By Type | |
| Hyperscalers (owned & 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 |
Germany Data Center Cooling Market Research FAQs
How big is the Germany Data Center Cooling Market?
The Germany Data Center Cooling Market size is expected to reach USD 0.51 billion in 2024 and grow at a CAGR of 14.30% to reach USD 1.14 billion by 2030.
What is the current Germany Data Center Cooling Market size?
In 2024, the Germany Data Center Cooling Market size is expected to reach USD 0.51 billion.
Who are the key players in Germany Data Center Cooling Market?
Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Alfa Laval AB and Daikin Applied Europe S.p.A. are the major companies operating in the Germany Data Center Cooling Market.
What years does this Germany Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Germany Data Center Cooling Market size was estimated at USD 0.44 billion. The report covers the Germany Data Center Cooling Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Germany Data Center Cooling Industry Report
Statistics for the 2024 Germany Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany Data Center Cooling analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Germany Data Center Cooling Market Report Snapshots
