Market Trends of North America Data Center Cooling Industry
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- The information technology (IT) industry primarily consists of the overall sales of information technology (IT) services and related goods by various entities such as sole traders, organizations, and partnerships that mainly apply computers, computer peripherals, and telecommunications equipment to retrieve, store, transmit and maneuver data. The IT market also involves computer networking, systems design services, broadcasting, information distribution technologies like telephones and television, and several other equipment used during the process. These huge requirements require a proper cooling system for the devices to perform normally, thereby driving the overall demand for the data center cooling market.
- The IT industry needs on-premise private data storage as well as hyperscale data centers for its various operations according to the organization's size. The rise in the adoption of cloud storage has drastically increased over the years within the region, especially due to growth in SaaS providers, allowing cloud storage providers to extend their capacities, which is anticipated to maximize the demand for data center cooling systems.
- The cooling system is essential in the IT and data center sector, primarily due to the need for various enhanced high-quality cooling solutions that are quite efficient than the traditional air-cooling solution. Also, the rise in technological innovation in the IT infrastructure, coupled with the increase in the demand for cooling systems among the various smartphone manufacturers for thermal management, is also driving the market growth extensively.
- The United States plays a very significant role in terms of establishing various driving the market's growth rate, which is mainly due to the rising investments and establishments of the data center by the key major market players within the region. For instance, in January 2023, Amazon Web Services intends to invest a sum of around USD 35 billion by 2040 to establish various multiple data center campuses across Virginia.
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Asia-Pacific is Expected to Hold Significant Market Share
- The United States is poised to dominate the market in North America, owing to the presence of many services and software providers as well as high investments by colocation providers and hyper-scale data center operators. In the last few years, there has been a significant rise in the number of data centers. A considerable number of processors are being utilized in a given space to increase data centers' performance, which results in increased density. The requirement for power and cooling has grown along with increased density.
- The United States also contributes substantially to the global data center requirements from the banking, IT, financial services, and insurance (BFSI), retail, and healthcare industries. Data center service providers in the region are prompted to manage their operating costs, as the region is a lucrative market, considering the number of data centers and their expansions.
- Data centers' power density experiences growth by an average of 1.5 kW per rack, which results in limited air distribution and enhanced heat generation. In general, IT equipment typically needs between 100 and 160 cfm of air per kW, but in a dense environment, it diminishes to less than 100, which results in higher heat generation, driving the market's growth significantly.
- The expansion of mobile broadband, the emergence of 5G, growth in Big Data analytics, and cloud computing are the primary factors driving the demand for new data center infrastructures in the United States. Network providers are working to ensure the rapid implementation of 5G for better innovation. Such developments are further driving the demand for efficient data center cooling solutions and services among United States's enterprises.
- As per Cloudscene, as of September 2023, the total count of data centers in the United States was 5,375, whereas Germany ranked second with an overall count of 522 data centers. The United Kingdom ranked 3rd among countries in terms of the total number of data centers, with 517, while China recorded 448. This possession of a significant number of data centers in the United States is expected to amplify the market's growth throughout the forecast period.
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