Market Trends of Indonesia Data Center Cooling Industry
Liquid-based Cooling Witnessing the Fastest Growth
- Technological advances have made liquid cooling easier to maintain, more scalable, and more affordable, reducing data center liquid consumption 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.
- Liquid cooling takes advantage of the superior heat transfer properties of water or other liquids to support efficient and cost-effective cooling of high-density racks, up to 3,000 times more effective than using air. Long proven in mainframe and gaming applications, liquid cooling is increasingly being used to protect rack servers in data centers across the region.
- Direct liquid cooling (DLC) solutions achieve partial power usage effectiveness (PUE) of 1.02 to 1.03, outperforming the most efficient air cooling systems by low single-digit percentages. However, PUE is not responsible for much of the DLC's energy gain. Traditional servers have fans that use power from the rack, so control is included in the IT power section of the PUE. These are considered part of the data center payload.
- Water cooling can be essential in minimizing emissions and reducing climate disturbance. Data centers using water as a cooling substance use about 10% less energy than most air-cooled data centers, emitting about 10% less CO2. Water cooling could reduce energy-related CO2 emissions in the data center portfolio by about 300,000 tonnes.
Understand The Key Trends Shaping This Market
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IT & Telecommunication is the Largest Segment
- Indonesia's digital economy is expected to add USD 150 billion to GDP by 2025. The Indonesian government is undertaking large-scale infrastructure development to achieve this goal. The government has launched several national initiatives such as the 100 Smart Cities Movement, e-Smart IKM, and Go Digital Vision 2020 as part of the digital transformation.
- According to the Chief Economist of the Economist Intelligence Unit, Indonesia is a good place to invest in digital technology because it is the largest market in Southeast Asia. Due to the potential of cloud business, many digital giants are building data centers in the country. As a result, cloud computing offers a range of benefits that match its operations and goals. The government has recognized the importance of cloud migration to the country's digital economy development and has announced plans to facilitate adoption through further regulatory development.
- The Ministry of Communications and Information has created the Digital Indonesia 2021-2024 Strategy. Digital infrastructure, digital governance, digital economy, and digital society are the four main focus areas of the draft. This roadmap outlines Indonesia's policy objectives, implementation plans, and timeline for digital transformation. Another goal is to distribute the digital economy more fairly across the region.
- The telecommunication sector is projected to maintain its dominance due to the growing adoption of 5G networks among users. The 5G mobile data speed is expected to increase significantly, reaching 259.3 Mbps by 2029. This suggests increasing data traffic and growing demand for data center servers in the market.
- Indonesia's digital economy is growing rapidly, owing to the increasing adoption of digitalization and well-known online marketplaces such as Tokopedia and GoJek. The goal is to enable three stages of future cities: smart cities (comfortable, livable, and safe), greener cities (climate change and disaster resistant), and competitive, technology-based smart cities. To do so, the Indonesian government has launched a smart city initiative, City Vision Indonesia 2015-2045. Thus, the demand for data center facilities is expected to increase the demand for better cooling equipment.
