India Data Center Cooling Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.93 Billion |
| Market Size (2030) | USD 6.74 Billion |
| CAGR (2024 - 2030) | 23.21 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Data Center Cooling Market Analysis
The India Data Center Cooling Market size is estimated at USD 1.93 billion in 2024, and is expected to reach USD 6.74 billion by 2030, growing at a CAGR of 23.21% during the forecast period (2024-2030).
- The increasing demand for 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 centers in India.
- The upcoming IT load capacity of the Indian data center market is expected to reach more than 4,700 MW by 2030. The country's construction of raised floor area is expected to increase above 14.2 million sq. ft by 2030.
- The total number of racks to be installed in the country is expected to reach over 7,10,000 units by 2030. Bangalore, Chennai, Hyderabad, Mumbai, NCR, and Pune are expected to house the maximum number of racks by 2030. The average annual temperature ranges between 24 degrees Celsius and 29 degrees Celsius. Many DC operators are increasing the utilization of liquid cooling solutions as they are much more efficient in handling HPC workloads. India is experiencing high HPC post the COVID-19 pandemic, and it is expected to increase and boost the demand in the market studied.
- There are close to 44 submarine cable systems connecting India, and many are under construction. For instance, in January 2024, NEC Corporation India, in collaboration with NEC Corporation, successfully finalized the installation of a cutting-edge optical submarine cable system in Southern India. This system links the bustling port city of Kochi with 11 of the Lakshadweep islands, including Agatti, Andrott, and Kavaratti. The primary goal of this initiative is to bolster voice and data connectivity, catering to a range of needs from e-governance to e-commerce. This is projected to increase data generation, which would increase the use of efficient cooling solutions in the data center industry in India to cater to the rising heat generation.
India Data Center Cooling Market Trends
Liquid-based Cooling is the Fastest Growing Segment
- Direct liquid cooling (DLC) solutions consistently achieve impressive partial power usage effectiveness (PUE) ratings, typically ranging from 1.02 to 1.03. This places them ahead of even the most efficient air cooling systems, surpassing them by a slight margin, usually in the low single-digit percentage range. It is important to note that while PUE improvement is a significant benefit of DLC, it does not account for the majority of its energy efficiency gains.
- In January 2023, NTT achieved a significant milestone in Indian data center sustainability by introducing liquid immersion cooling and direct contact liquid cooling technologies. This deployment at its Navi Mumbai Data Center not only marked the first time these technologies were used in a production environment in India but also was the largest implementation of its kind in the APAC data center market. By leveraging these innovations, NTT's data centers are poised to achieve up to a 30% increase in energy efficiency compared to traditional cooling systems.
- Indian organizations and data center providers are making significant efforts to increase the power efficiency of their market-leading data centers. Water-based refrigeration, a sub-segment of liquid-based refrigeration, is the most widely used cooling system and is commonly used in chillers, condensers, and economizers.
- Technological advances have made liquid cooling easier to maintain, more scalable, and more affordable, reducing the liquid consumption of data centers by more than 15% in tropical climates and by 80% in greener areas. The energy used for liquid cooling can be recycled to heat buildings and water, and advanced artificial refrigerants can effectively reduce the carbon footprint of air conditioners.
IT and Telecom is the Largest Segment
- The Indian government is dedicated to establishing an enabling political and regulatory environment to facilitate the continued expansion of key technologies such as 5G, Internet of Things (IoT), artificial intelligence (AI), cloud computing, blockchain, and machine-to-machine (M2M) communications. This commitment is fueled by the remarkable growth of the information and communication technology (ICT) sector in India and its substantial contributions to the country's socio-economic progress.
- It is imperative for the government to formulate and implement the right policies to harness the potential of the ICT sector, making it a prominent driver of India's economic growth. Advancements in these technological domains are poised to propel the research and development market within the region, further bolstering India's position as a hub for innovation and technological progress.
- Since the pandemic, cloud computing has evolved into a mission-critical technology for businesses, governments, and consumers. Not only is this the underlying technology for digital transformation, but it also enables innovation and collaboration among stakeholders in the ecosystem. During the pandemic, 53% of organizations increased cloud adoption year-over-year. In addition, 84% of organizations adopted SaaS.
- Most Indian people are switching to online payment methods. The volume of total digital payment transactions increased from 2,071 crores in FY 2017-18 to 13,462 crores in FY 2022-23, recording a CAGR of 45%. During FY 2023-24, digital payment transactions reached 11,660 crores till December 2023.
- According to IBEF, India's infrastructure and information technology sectors are likely to be central to it becoming a USD 10 trillion economy by 2030. While leading multinational Indian companies, such as Tata Consultancy Services (TCS), Wipro, Infotech, Cognizant, and Infosys, dominate the IT sector in India, the country houses many small and medium-sized players (SMEs) that contribute to over 30% of the country’s IT exports. Such factors are expected to lead to the growth of the overall data center industry in India.
India Data Center Cooling Industry Overview
The Indian data center cooling market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, including Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Rittal GmbH & Co. KG, and Iceotope Technologies Limited, currently dominate the market.
In March 2023, STULZ, a Hamburg-based company specializing in mission-critical air conditioning, made a significant announcement regarding its industry-leading CyberAir 3PRO DX series. The company revealed that certain units within this series were compatible with the low-global-warming-potential (GWP) refrigerant R513A. This groundbreaking development underscored STULZ's unwavering commitment to delivering the most sustainable air conditioning solutions for data centers. The company also implemented additional product transitions across its portfolio to further incorporate the use of the R513A refrigerant.
India 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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Rittal GmbH & Co. KG
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Mitsubishi Electric Hydronics & IT Cooling Systems SpA
*Disclaimer: Major Players sorted in no particular order
India Data Center Cooling Market News
- June 2024: Perstorp, a leading global specialty chemicals company under PETRONAS Chemicals Group Berhad (PCG), collaborated extensively with Intel's Open IP Advanced Liquid Cooling team. Their joint efforts led to the creation of a cutting-edge synthetic thermal management fluid. This fluid is tailored for immersion cooling applications in data centers. Intel's SuperFluid technology, employing air as a lubricant, surpasses traditional single-phase immersion cooling. While the latter typically manages around 500 W per chip, Intel's innovation boosts this capacity significantly to 800 W.
- January 2024: Modine, a prominent global player in cutting-edge thermal management solutions, revealed its acquisition of TMG Core's intellectual property and select assets. TMG Core specializes in liquid immersion cooling technology, catering specifically to data centers with high-density computing needs. Neil Brinker, Modine's President and CEO, emphasized that this move bolstered Modine's foothold in the swiftly expanding data center landscape, equipping its clientele with advanced solutions tailored for high-density computing applications, including generative AI, 5G, and machine learning.
India Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions 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 Increasing Demand for Data centers
5.1.2 Emergence of Green Data Centers, as well as Government and Other Digital Initiatives in India
5.2 Market Challenges
5.2.1 Increasing Power Consumption
5.2.2 Carbon Emissions and the Substantial Water Consumption in Cooling Data Centers
5.3 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT (INDIA)
6.1 Analysis of IT Load Capacity and Area Footprint of Data Centers in India (For the Period of 2017-2030)
6.2 Analysis of the Current DC Hotspots and Scope for Future Expansion in India
6.3 Analysis of Major Data Center Contractors and Operators in India
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 Hyperscaler (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 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 Kirloskar Chillers Private Limited
8.1.7 Johnson Controls Inc.
8.1.8 Mitsubishi Electric Corporation
8.1.9 Munters Group
8.1.10 Eaton Corporation PLC
8.1.11 Prasa Infocom & Power Solutions Pvt. Ltd
8.1.12 Hitachi Energy Ltd
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
India 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 the 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 Indian data center cooling market study is segmented by cooling technology (air-based cooling (chiller and economizer, crah, cooling towers, and other air-based cooling technologies), liquid-based cooling (immersion cooling, direct-to-chip cooling, 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 value terms in USD for all the above-mentioned segments.
| By Cooling Technology | ||||||
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| By Type | |
| Hyperscaler (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 |
India Data Center Cooling Market Research FAQs
How big is the India Data Center Cooling Market?
The India Data Center Cooling Market size is expected to reach USD 1.93 billion in 2024 and grow at a CAGR of 23.21% to reach USD 6.74 billion by 2030.
What is the current India Data Center Cooling Market size?
In 2024, the India Data Center Cooling Market size is expected to reach USD 1.93 billion.
Who are the key players in India Data Center Cooling Market?
Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Rittal GmbH & Co. KG and Mitsubishi Electric Hydronics & IT Cooling Systems SpA are the major companies operating in the India Data Center Cooling Market.
What years does this India Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the India Data Center Cooling Market size was estimated at USD 1.48 billion. The report covers the India Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
India Data Center Cooling Industry Report
Statistics for the 2024 India Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India 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.
