Hong Kong Data Center Cooling Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 129 Million |
| Market Size (2030) | USD 349.10 Million |
| CAGR (2024 - 2030) | 18.05 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Hong Kong Data Center Cooling Market Analysis
The Hong Kong Data Center Cooling Market size is estimated at USD 129 million in 2024, and is expected to reach USD 349.10 million by 2030, growing at a CAGR of 18.05% during the forecast period (2024-2030).
- Summers in Hong Kong are hot, humid, and prone to occasional thunderstorms. Average temperatures range from 28 to 33 °C, with high humidity. For a city like Hong Kong, liquid cooling is an inevitable option that should be accepted as an industry standard.
- The upcoming IT load capacity of the Hong Kong data center cooling market is expected to reach around 1.8 thousand MW by 2030. The country's construction of raised floor area is expected to increase by more than 6.4 million sq. ft by 2030.
- The country's total number of racks to be installed is expected to reach above 315 thousand units by 2030. Tseung Kwan O is expected to house the maximum number of racks by 2030.
- There are close to 2 submarine cable systems connecting Hong Kong, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Cable Link ALC, which stretches over 6,000 kilometers with landing points from Hong Kong.
Hong Kong Data Center Cooling Market Trends
IT and Telecom to Hold Significant Share
- Hong Kong has long been acknowledged as one of the world's top cities for fixed broadband performance. The country's fixed line and mobile service penetration rates are among the highest in the world, and broadband infrastructure is widely used.
- In FY 2023, Hong Kong's government spent HKD 14.2 billion (USD 1.82 billion) on information communication technology, marking a slight increase from the prior year. In 2023, this ICT expenditure constituted 1.7% of the government's public spending and accounted for 0.5% of Hong Kong's GDP.
- Hong Kong's fixed-line tele density is remarkable at over 50%. However, as people gradually switch to the mobile platform for all their communication needs, the data is increasing exponentially, leading to major demand for servers and equipment, thereby increasing the demand for cooling solutions.
- Such factors are leading to the usage of 5G services. With 5G being introduced in the country, high bandwidth speeds led to users opting for multiple smart devices, such as smart wearables, tablets, security systems, smart lighting, and others, which have catalyzed the demand for these devices.
- Around 96% of the population in Hong Kong currently uses smartphones to access the internet on a daily basis. This has led to major data traffic, increasing the telecom data centers' use of cooling solutions.
Liquid Cooling to Register Significant Growth
- In the ever-evolving landscape of data centers, efficient cooling solutions are crucial to maintain optimal performance and handle the increasing heat loads generated by modern IT equipment. Among the emerging technologies, liquid cooling systems have gained significant traction in recent years.
- Air cooling is insufficient to sustain the dependability of IT systems in facilities with exceptionally high-density racks (usually over 30 kW), regardless of how new or optimized they may be.
- Liquid cooling is not an option but rather a must for such facilities (rack power requirements are approaching 20 kW in many facilities, and many companies are aiming to build racks with requirements of 50 kW or more). Goodman Tsuen Wan West Campus ( 2 buildings) of Goodman and Mega IDC facility of SUNeVision are the under-construction facilities with high rack densities.
- To meet its 2025 carbon emissions reduction target, OneAsia, an Asian IT service provider for cloud-based solutions and data center services, stated that it will introduce an 'immersion cooling' solution in September 2023 in Hong Kong.
- High-tier data centers may consider adopting water-cooled air-conditioning systems, which are more energy-efficient than an air-cooled system, for data center cooling purposes. In Hong Kong, the authority of approval for fresh water supply for cooling purposes for non-domestic buildings within designated areas under the government's voluntary Fresh Water Cooling Towers (FWCT) Scheme for Air Conditioning Systems administered by the Electrical and Mechanical Services Department (EMSD) falls under the Water Supplies Department (WSD).
- It is expected that with the rising demand for high-density computing applications, traditional air-cooled units will now be replaced by liquid-cooling units. Furthermore, cloud storage use has expanded over the years and is likely to raise demand for liquid data center cooling systems. For instance, 75% of the businesses in Hong Kong have adopted cloud services as they offer more flexibility and cost-effectiveness. Also, under the Smart City Blueprint program, government departments have been using cloud platforms since 2020.
Hong Kong Data Center Cooling Industry Overview
The Hong Kong data center cooling market is characterized by consolidation among key players who have significantly enhanced their competitive position in recent years. Prominent companies such as Schneider Electric SE, OneAsia Network Limited, and LiquidStack Holding BV dominate this market. These major players, commanding substantial market shares, are actively pursuing strategies to expand their customer base throughout the region. They achieve this by engaging in strategic collaborative initiatives aimed at augmenting their market presence and overall profitability.
Hong Kong Data Center Cooling Market Leaders
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Schneider Electric SE
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OneAsia Network Limited
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LiquidStack Holding B.V
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Newtech Group
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Rittal GMBH & Co.KG
*Disclaimer: Major Players sorted in no particular order
Hong Kong Data Center Cooling Market News
- March 2023: STULZ, a Hamburg-based company specializing in mission-critical air conditioning, announced a significant advancement in its industry-leading CyberAir 3PRO DX series. Some units in this series are now compatible with the low-global-warming-potential (GWP) refrigerant R513A. This breakthrough development underscores the company's ongoing commitment to providing the most sustainable air conditioning systems for data centers. Furthermore, STULZ expanded its product portfolio to incorporate R513A refrigerant in more of its offerings, reinforcing its dedication to eco-friendly solutions which is also available in Hong Kong.
- March 2023: LiquidStack announced a significant investment from HVAC company Trane Technologies to propel immersion cooling technology to new heights. LiquidStack's proprietary liquid immersion cooling technology represents a leap in sustainable data center cooling. These immersion cooling solutions align seamlessly with the company's ambitious sustainability goals, including a commitment to reduce carbon emissions within its customer base by a staggering 1 billion tons by 2030 and the ultimate achievement of net-zero emissions by 2050. This technology also offers substantial benefits to its users, contributing to their sustainability objectives.
Hong Kong Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & 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 Development of IT Infrastructure in the Region
5.1.2 Emergence of Green Data Centers
5.2 Market Challenges
5.2.1 Costs, Adaptability Requirements, Power Outages
5.3 Market Opportunities
5.3.1 The Growth of the Digital Economy and Increasing Government's Support
5.4 Comparison of Raised Floor with Containment and Raised Floor Without Containment
5.5 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN HONG KONG
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 in Hong Kong
6.3 Analysis of Major Data Center Contractors and Operators in Hong Kong
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 Schneider Electric SE
8.1.2 OneAsia Network Limited
8.1.3 LiquidStack Holding BV
8.1.4 Newtech Group
8.1.5 AIREDALE INTERNATIONAL AIR CONDITIONING LTD
8.1.6 Munters Group AB
8.1.7 Huawei Technologies Co. Ltd
8.1.8 Johnson Controls International PLC (York International)
8.1.9 Fujitsu General Limited
8.1.10 Rittal GMBH & Co.KG
8.1.11 Legrand SA
8.1.12 Johnson Controls Inc.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Hong Kong 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 Hong Kong 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 |
Hong Kong Data Center Cooling Market Research FAQs
How big is the Hong Kong Data Center Cooling Market?
The Hong Kong Data Center Cooling Market size is expected to reach USD 129 million in 2024 and grow at a CAGR of 18.05% to reach USD 349.10 million by 2030.
What is the current Hong Kong Data Center Cooling Market size?
In 2024, the Hong Kong Data Center Cooling Market size is expected to reach USD 129 million.
Who are the key players in Hong Kong Data Center Cooling Market?
Schneider Electric SE, OneAsia Network Limited, LiquidStack Holding B.V, Newtech Group and Rittal GMBH & Co.KG are the major companies operating in the Hong Kong Data Center Cooling Market.
What years does this Hong Kong Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Hong Kong Data Center Cooling Market size was estimated at USD 105.72 million. The report covers the Hong Kong Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Hong Kong Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Hong Kong Data Center Cooling Industry Report
Statistics for the 2024 Hong Kong Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hong Kong 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.
Hong Kong Data Center Cooling Market Report Snapshots
