Data Center Cooling Market Size
| Study Period | 2018 - 2030 |
| Market Size (2024) | USD 9.38 Billion |
| Market Size (2030) | USD 21.83 Billion |
| CAGR (2024 - 2030) | 15.11 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Data Center Cooling Market Analysis
The Data Center Cooling Market size is estimated at USD 9.38 billion in 2024, and is expected to reach USD 21.83 billion by 2030, growing at a CAGR of 15.11% during the forecast period (2024-2030).
- Due to the high computational needs of AI and media applications, data centers are being increasingly deployed worldwide. These data centers consume a massive amount of power, generating a significant amount of heat, further creating the need for various efficient cooling systems.
- The data center cooling market is expected to show substantial growth due to increased digitization, leading to greater computer performance and requiring a larger number of integrated small chips. The design of data centers and the need to cool them are mainly influenced by powerful computer hardware for AI workloads. Manufacturers are introducing large silicon chips to optimize the performance of artificial intelligence and high-performance computing workloads. The use of powerful GPUs in artificial intelligence and high-performance computing environments supports the need for data center cooling technologies.
- The increasing use of OTT and streaming services has led to a growth in data, fostering market development. Also, the increasing data from online streaming services such as Disney+ Hotstar, Hulu, and Netflix is expected to drive the demand for data center cooling systems.
- Market players are taking action to augment their consumer base by focusing on expanding their global footprint and service offerings. For instance, in March 2024, the intelligent power management company Eaton declared the North American launch of an innovative modular data center solution for organizations that are seeking to rapidly fulfill the increasing requirements for machine learning, edge computing, and AI. Eaton's SmartRack modular data centers primarily combine IT racks and cooling and service enclosures to build a performance-optimized data center solution for critical IT equipment with up to 150 kW of equipment load.
- The market's growth is expected to be hampered by the rising need for various adaptability requirements and power shortages worldwide. Also, the use of inefficient cooling system designs, such as outdated infrastructure or poorly optimized layouts, leading to energy inefficiencies and increased operational costs, and rising energy prices, which might make the cooling expenses prohibitive, are some of the factors that can restrain the market's growth during the forecast period.
Data Center Cooling Market Trends
The IT and Telecom Segment is Expected to Witness the Highest Growth
- The exponential growth of data generated by information technology significantly necessitates efficient data centers, driving demand for advanced cooling solutions. As data centers expand to accommodate increasing workloads and storage demands, the heat generated becomes a significant matter of concern, creating demand for effective cooling solutions.
- The adoption of cloud storage has been increasing over the years. To provide more efficient work processes, cloud storage providers such as Microsoft, AWS, and Google are expanding their capacity to store in the cloud. These companies make their investments in hyperscale transactions. As a result, the demand for data center cooling systems is expected to grow due to the expansion of Software-as-a-Service, enabling cloud storage providers to augment their capacity.
- Immersion cooling can be executed in a single-phase or two-phase solution. Single-phase immersion cooling encapsulates the server in a sealed chassis, and the design can be configured in a rackmount or standalone format. However, two-phase immersion cooling locations the server in the liquid, but the liquid transitions during the cooling process. As the fluid warms up and turns to condensation, the water circuit and heat exchanger withdraw the heat. In 2P immersion cooling, dielectric cooling fluid inside a metal holding tank contained with servers is boiled and condensed in a secured cooling system, exponentially growing heat transfer efficiency.
- In May 2023, KT Cloud signed a deal with Immersion 4, a Swiss provider of liquid cooling solutions, to install next-generation immersion cooling technology at KT Cloud data centers. Immersion cooling removes heat by immersing information and communications technology equipment in a dielectric solution where electricity does not flow. This eliminates the imbalance in server room temperatures and fan noise at data centers that can occur with an air-cooling system.
Asia-Pacific is Expected to Register Significant Growth
- Asia-Pacific is estimated to witness the fastest growth rate during the forecast period, mainly due to the rapid development of the network infrastructure. The demand for data generation is increasing in the region, and government policies are promoting more energy-efficient infrastructure, especially in countries like India and China. Also, advancements in technologies such as AI-driven cooling management and liquid cooling systems are reshaping the landscape, driving further adoption in the region.
- China and Japan are among the most important countries that are expected to fuel the market's growth opportunities, significantly based on their ongoing innovations and developments in domains like IoT, ML, and AI. Moreover, the rapidly growing number of data centers in these countries and the government policies to promote more environmentally sound infrastructure across the region are driving the need for better and more effective cooling solutions within these data centers.
- For instance, in April 2024, GDS, an operator and developer of high-performance data centers in Asia, and Gaw Capital Partners, a private equity fund management firm especially focusing on the real estate markets in Asia-Pacific and other high barrier-to-entry markets worldwide, signed a strategic partnership to build a 40 megawatts (MW) data center campus in Tokyo, Japan.
- The Asia-Pacific data center cooling market is primarily fueled by the exponential growth of data consumption and cloud services. As businesses expand their digital infrastructure, the demand for efficient cooling systems to maintain optimal operating temperatures increases. Additionally, stringent regulations regarding energy efficiency and environmental sustainability encourage the adoption of innovative cooling technologies. With emerging economies investing heavily in IT infrastructure, the need for reliable and scalable cooling solutions further fuels market growth.
- In December 2023, the Australian cloud service provider ResetData launched a test and simulation lab for its pioneering liquid-cooled data center server technology. This was one of the first facilities in Asia-Pacific capable of trialing workloads in a liquid-cooled environment. This step empowered local businesses to utilize a more ecological and high-performance Infrastructure-as-a-Service (IaaS) that is essential for strenuous applications like AI and machine learning.
Data Center Cooling Industry Overview
The data center cooling market exhibits a low level of consolidation among key industry players. Notable market leaders include Stulz GmbH, Alfa Laval AB, Schneider Electric SE, Johnson Controls Inc., Vertiv Group Corp., and Asetek A/S. 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, Johnson Controls Inc., and Mitsubishi Electric Europe BV offer both liquid and air-based cooling products.
Data Center Cooling Market Leaders
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Stulz GmbH
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Rittal GmbH & Co. KG
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Vertiv Group Corp.
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Alfa Laval AB
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Johnson Controls Inc.
*Disclaimer: Major Players sorted in no particular order
Data Center Cooling Market News
- March 2024: Boreas Technology, a specialist in data center cooling technologies, developed its Rear Door Cooling Device, which is designed for high-density environments. This innovation provides precision cooling with up to 50 kW capacity. This device offers efficiency, sustainability, and industry-leading standards. It also allows the efficient operation of cabinets that are expected to operate at high capacity and density in data centers, enabling effective heat management.
- January 2024: Aligned Data Centers, the technology infrastructure company providing sustainable, innovative, and adaptive scale data centers and build-to-scale solutions for global hyperscale and enterprise customers, introduced its DeltaFlow liquid cooling technology. DeltaFlow is a patent-pending solution built to support the high-density computing requirements of next-generation applications and high-performance computing, including artificial intelligence, machine learning, and supercomputers. DeltaFlow extends Aligned's ExpandOnDemand capabilities, providing customers the flexibility to seamlessly scale and pivot to support the changing computing environments.
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, 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 Rapid Digitization and Adoption of AI and HPC Workload Around the Globe
5.1.2 Emergence of Green Data Centers
5.2 Market Challenges
5.2.1 Costs, Adaptability Requirements, and Power Outages
5.2.2 Supply Chain Disruption Globally
5.3 Market Opportunities
5.3.1 The Growth of the Digital Economy and Increasing Government's Support across Major Regions
5.4 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN GLOBAL
6.1 Analysis of IT Load Capacity and Area Footprint of Data Centers (For the Period of 2017-2030)
6.2 Analysis of the Current DC Hotspots and Scope for Future Expansion Globally
6.3 Analysis of Major Data Center Contractors and Operators Across Major Regions
7. INDONESIA DATA CENTER 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 and Leased)
7.2.2 Enterprise (On-premise)
7.2.3 Colocation
7.3 By End-user Vertical
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 Verticals
7.4 By Region
7.4.1 North America
7.4.2 Europe
7.4.3 Asia-Pacific
7.4.4 Rest of the World
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Vertiv Co.
8.1.2 Stulz GmbH
8.1.3 Schneider Electric SE
8.1.4 Rittal GmbH & Co. KG
8.1.5 Alfa Laval Corporate AB
8.1.6 Fujitsu General Limited
8.1.7 Johnson Controls Inc.
8.1.8 Hitachi Ltd
8.1.9 CoolIT Systems Inc.
8.1.10 Liquid Stack Inc.
8.1.11 Asetek Inc. A/S
8.1.12 Asperitas
8.1.13 Chilldyne Inc.
8.1.14 Fujitsu Ltd
8.1.15 Mikros Technologies
8.1.16 KAORI HEAT TREATMENT Co. Ltd
8.1.17 Lenovo Group Limited
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to 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 the 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 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 (hyperscaler, enterprise, and colocation), end-user industry (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries), and region (North America, Europe, Asia-Pacific, and Rest of the World). The report offers market sizes and forecasts in terms of value (USD) for all the above segments.
| By Cooling Technology | ||||||
| ||||||
|
| By Type | |
| Hyperscalers (Owned and Leased) | |
| Enterprise (On-premise) | |
| Colocation |
| By End-user Vertical | |
| IT and Telecom | |
| Retail and Consumer Goods | |
| Healthcare | |
| Media and Entertainment | |
| Federal and Institutional Agencies | |
| Other End-user Verticals |
| By Region | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Data Center Cooling Market Research FAQs
How big is the Data Center Cooling Market?
The Data Center Cooling Market size is expected to reach USD 9.38 billion in 2024 and grow at a CAGR of 15.11% to reach USD 21.83 billion by 2030.
What is the current Data Center Cooling Market size?
In 2024, the Data Center Cooling Market size is expected to reach USD 9.38 billion.
Who are the key players in Data Center Cooling Market?
Stulz GmbH, Rittal GmbH & Co. KG, Vertiv Group Corp., Alfa Laval AB and Johnson Controls Inc. are the major companies operating in the Data Center Cooling Market.
Which is the fastest growing region in Data Center Cooling Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2030).
Which region has the biggest share in Data Center Cooling Market?
In 2024, the North America accounts for the largest market share in Data Center Cooling Market.
What years does this Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Data Center Cooling Market size was estimated at USD 7.96 billion. The report covers the Data Center Cooling Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
What are the key factors driving the Data Center Cooling Market?
Major factors driving the Data Center Cooling Market include a) Rising amount of data generated by industries b) Increasing adoption of cloud services c) Need for energy-efficient cooling solutions
What are the key factors driving the Data Center Cooling Market?
Major factors driving the Data Center Cooling Market include a) Rising amount of data generated by industries b) Increasing adoption of cloud services c) Need for energy-efficient cooling solutions
Data Center Cooling Industry Report
The Global Data Center Cooling Market Report is segmented by solution, service, end-user vertical, and geography. The market sizes and forecasts are provided in terms of value for all the segments. The data center cooling market is poised for substantial growth, driven by the increasing demand for efficient cooling solutions to manage the heat from high-density computing in various industries. This surge is fueled by the expansion in data generation, cloud computing, and IoT applications.
Innovations in the sector, such as modular and scalable cooling systems like row/rack-based cooling, are crucial for adapting to the evolving needs of data centers. The Asia Pacific region, in particular, is expected to witness the highest growth due to rapid digital transformation and significant IT infrastructure investments. Key segments like mid-sized data centers and academic sectors are also projected to see notable expansion, highlighting the importance of advanced cooling technologies in promoting sustainable and energy-efficient operations.
According to Mordor Intelligenceā¢ industry reports, the data center cooling solutions market trends indicate a robust expansion. For detailed insights on data center cooling market size and trends, download a free PDF sample of the industry analysis from Mordor Intelligenceā¢. The market forecast shows a promising market growth, driven by the increasing market size and market share. The market analysis reveals a comprehensive market overview, with significant market trends shaping the global market outlook.
The market review highlights the importance of market segmentation in understanding market value and market predictions. Industry information points to a strong growth rate, supported by thorough industry research and industry sales data. The industry statistics provide a clear industry outlook, emphasizing the role of market leaders in driving the market forward. Research companies are focusing on delivering accurate market data and market predictions to help stakeholders make informed decisions.
The report example and report PDF offer valuable insights into the market trends and market segmentation, ensuring that the industry remains well-informed and prepared for future developments.
Data Center Cooling Market Report Snapshots
