Philippines Data Center Cooling Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 67.93 Million |
| Market Size (2030) | USD 186.20 Million |
| CAGR (2024 - 2030) | 18.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Philippines Data Center Cooling Market Analysis
The Philippines Data Center Cooling Market size is estimated at USD 67.93 million in 2024, and is expected to reach USD 186.20 million by 2030, growing at a CAGR of 18.30% 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 the Philippines.
- The IT load capacity of the Philippine data center cooling market is expected to reach above 950 MW by 2030. The country's construction of raised floor area is expected to increase above 5.3 million sq. ft by 2030.
- The country's total number of racks to be installed is expected to reach more than 260 thousand units by 2030. NCR (Metro Manila) is expected to house the maximum number of racks by 2030. The average annual temperature of the country is 27.1 °C, with relatively small seasonal variations of about 3 °C. Depending upon climatic conditions, DC cooling is processed in the DC facilities.
- There are close to 23 submarine cable systems connecting the Philippines, and many are under construction.
Philippines Data Center Cooling Market Trends
Liquid-based Cooling is the Fastest-growing Segment of the Market
- 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 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 solutions consistently deliver impressive partial power usage effectiveness (PUE) ranging from 1.02 to 1.03, surpassing the efficiency of even the most efficient air cooling systems by a marginal single-digit percentage. However, it is essential to note that a significant portion of the energy efficiency improvement attributed to DLC is not reflected in the PUE metric. This is due to the fact that traditional servers incorporate fans that draw power from the rack, and their control mechanisms are factored into the IT power consumption portion of the PUE calculation. These fan power requirements are considered part of the data center's overall payload.
- Technological advances have made liquid cooling easier to maintain, scalable, and affordable, reducing data center liquid consumption by more than 15% in tropical climates and 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.
- Furthermore, the demand for online shopping has increased considerably post-pandemic. Cashless payments, product quality, and shopping at the convenience of the home have increased the demand proportionally for these online e-commerce platforms. The leading online e-commerce platforms are Shopee, Lazada, Zalora, and BeautyMNL. The Philippine e-commerce market is expected to increase in value from USD 17 billion to USD 24 billion by 2025. Thus, growing data consumption and the need for storage are expected to aid in the expansion of data center facilities in the country.
IT and Telecommunication is the Largest Segment of the Market
- The ICT industry includes both IT and telecommunications markets. IT investment is on the rise, and the demand for the ICT industry is expected to grow significantly over the next five years. According to the Department of International Trade, the sales of Philippine software services are expected to reach USD 95 million by 2025.
- The Philippine Development Plan (PDP) 2023-2028 highlights digital transformation as a key theme. During his second State of the Nation Address (SONA), President Marcos mandated all government agencies to digitize essential public services. Initiatives supporting this directive encompass the creation of additional common tower infrastructures to bolster connectivity, the digitalization of business registration processes at the local government level, and the consolidation of online government services into a unified platform via the eGov PH Super App.
- Cyberattacks are expected to increase over the next five years. Advances in IT operations protect the ICT industry from cyberattacks. As cloud-based platforms and enterprise software provide real-time data, they create greater value for businesses, especially by providing remote access. For example, Microsoft introduced new and enhanced security services under a new service category known as "Microsoft Enterprise Security Professionals."
- Given the increasing digital adoption, Alibaba Cloud Intelligence intends to invest more in the Philippines after opening a data center. Allen Guo, the country manager for the technology firm, said at a press conference in Makati that the company was considering expanding the capacity of its data center to accommodate the growing use of digital platforms. Around 88% of the companies in the Philippines use cloud-based solutions. The growing demand for analytics and software for business purposes by the public and private industries is expected to boost the growth of the segment.
Philippines Data Center Cooling Industry Overview
The Philippine data center cooling market is moderately competitive, having gained a significant competitive edge in recent years. Currently, a handful of major players, including Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Rittal GmbH & Co. KG, and Mitsubishi Electric Hydronics & IT Cooling Systems SpA, dominate the market in terms of market share. 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 and Johnson Controls Inc. offer liquid and air-based cooling products.
Philippines 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
Philippines Data Center Cooling Market News
- October 2023: GRC, DCV Industries, and Dell Technologies collaborated to deliver high-efficiency, containerized data centers to the Middle East. This collaboration leverages GRC's patented single-phase immersion cooling systems, DCV's durable containerized data center enclosures, and Dell's high-density PowerEdge servers. These components are expected to form a comprehensive solution that notably slashes data center construction, upkeep, and energy expenses, especially in challenging environments.
- March 2023: Interactive, a leading managed service provider (MSP), unveiled its groundbreaking immersion data center cooling solution aimed at enhancing high-performance computing (HPC) capabilities for its valued clientele. Collaborating closely with digital infrastructure provider Vertiv, Interactive integrated cutting-edge Green Revolution Cooling tanks into its system. These tanks utilize a single-phase, non-conductive coolant renowned for its electrical component safety, boasting an impressive heat transfer capacity that surpasses that of air by a staggering 1,200 times.
Philippines 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 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN PHILIPPINES
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 the Philippines
6.3 Analysis of Major Data Center Contractors and Operators in the Philippines
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
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 Mitsubishi Electric Hydronics & IT Cooling Systems SpA
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 Emerson Electric Co.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Philippines 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 Philippine 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), 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 value (USD) for all the above segments.
| By Cooling Technology | ||||||
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| 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 |
Philippines Data Center Cooling Market Research FAQs
How big is the Philippines Data Center Cooling Market?
The Philippines Data Center Cooling Market size is expected to reach USD 67.93 million in 2024 and grow at a CAGR of 18.30% to reach USD 186.20 million by 2030.
What is the current Philippines Data Center Cooling Market size?
In 2024, the Philippines Data Center Cooling Market size is expected to reach USD 67.93 million.
Who are the key players in Philippines 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 Philippines Data Center Cooling Market.
What years does this Philippines Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Philippines Data Center Cooling Market size was estimated at USD 55.50 million. The report covers the Philippines Data Center Cooling Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Philippines Data Center Cooling Industry Report
Statistics for the 2024 Philippines Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines 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.
