Market Trends of Taiwan Data Center Cooling Industry
The IT and Telecom Segment is Expected to Hold Significant Share
- The telecommunications industry is looking toward institutionalization to supervise and promote digital transformation, making the process a foundation for developing the digital economy and society.
- Taiwanese mobile data usage has skyrocketed in four years, ranking second globally after Finland. According to the Global System for Mobile Communications, Taiwanese use twice as much monthly data per SIM card holder as South Koreans, more than three times as much as Japanese, and nearly six times as much as Singaporeans. This exponential increase in data usage is leading to a significant demand for servers, equipment, and cooling solutions.
- The increasing demand for high-speed data access, particularly for cloud and Internet of Things (IoT) applications like smart home energy management, is expected to drive the rapid adoption of 5G services. With 5G networks providing faster speeds, greater capacity, and reduced latency compared to 4G LTE networks, the number of 5G subscribers is experiencing substantial growth. In Taiwan, the total count of 5G customers exceeded 1 million within five months of the technology's launch. By the close of 2021, 5G penetration surged to over 30%.
- To support telecommunications operators, the Taiwanese government allocated USD 650 million, distributed between 2019 and 2022, to subsidize the installation of 5G in the country. Also, telco providers invest in data center construction, leading to market demand.
- Taiwan accounts for over 60% of global semiconductor production, dominating over 90% of the most advanced chips. Beyond semiconductors, Taiwan leads in digitalization and smart city initiatives, integrating digital technologies such as IoT, big data, and AI across nearly all industry sectors. This rapid data generation fuels a surging demand for data centers in Taiwan. Such hyperscale facility construction will lead to primary power heat consumption and significant demand for cooling solutions.
Understand The Key Trends Shaping This Market
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Liquid Cooling to Hold 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.
- A study conducted by the Uptime Institute found that liquid cooling systems achieved a power usage effectiveness (PUE) of 1.02, indicating remarkable energy efficiency gains. Companies like Microsoft and Google in Taiwan have implemented liquid cooling solutions in their data centers, resulting in significant energy savings.
- As Taiwan becomes a regional hub for many businesses, a growing investment in cloud computing leads to an increased demand for local data centers. The government is actively promoting digital transformation among Taiwanese enterprises. It is also dedicated to creating a cloud-based smart digital blueprint for local partners and connecting top-tier creative technologies for various industries.
- For instance, Microsoft launched its "Reimagine Taiwan" program in 2020, outlining intentions to build its first cloud data center area in Taiwan and make large investments in local talent and development to supply over 200,000 Taiwanese with digital skills in 2024. Such a factor highlights the increasing demand for liquid cooling due to the rise of cloud data centers in the country.
