Vietnam Data Center Cooling Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 23.33 Million |
| Market Size (2030) | USD 48.49 Million |
| CAGR (2024 - 2030) | 12.97 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Data Center Cooling Market Analysis
The Vietnam Data Center Cooling Market size is estimated at USD 23.33 million in 2024, and is expected to reach USD 48.49 million by 2030, growing at a CAGR of 12.97% during the forecast period (2024-2030).
- In Vietnam, the mean annual temperatures are around 24 to 25 °C, in which the coldest month has a mean temperature of 17 to 20 °C and the hottest month has a mean temperature of 29 to 30 °C.
- Extreme weather events are a threat to physical infrastructure such as power stations, electricity cables, and data center buildings, which drives the demand for data center cooling solutions.
- The upcoming IT load capacity of the Vietnamese data center cooling market is expected to reach around 250 MW by 2030. The country's construction of raised floor area is expected to increase by more than 800 thousand sq. ft by 2030.
- The country's total number of racks to be installed is expected to reach 43.9 thousand units by 2030. Ho Chi Minh City is expected to house the maximum number of racks by 2030.
- There are close to 7 submarine cable systems connecting Vietnam, and many are under construction. Vietnam's Ministry of Information and Communications (MIC) approved a strategy to enhance the country's international fiber optic cable system. By 2030, Vietnam aims to add at least ten undersea cables, expanding its undersea routes to a minimum of 15.
Vietnam Data Center Cooling Market Trends
IT and Telecom 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.
- The Vietnam Radio and Electronics Association suggested that 80% of Vietnamese data are created abroad. The country is taking necessary measures to produce its data locally and aims to generate revenues from the national data infrastructure, which may account for 1% of the GDP by 2025. Interconnecting data centers and providing connectivity are vital to network requirements, resulting in high storage resources and energy consumption, necessitating data center cooling.
- About 80% of the data centers in Vietnam are operated by local telecommunication companies. Major players include VNPT IDC (7 facilities, 2 of 10,000 sq. m, others under 2,000 sq. m in addition to joint-ventures in other projects of large scales from 5,000 - 6,000 sq. m), Viettel IDC (5 facilities, 1 of 10,000 sq. m, 3 of 3,000 - 6,500 sq. m, and 1 of 500 sq. m), and other players.
- Data centers exhibit energy and carbon-intensive properties due to the constant operation of cooling systems, IT equipment, power generators, and facility lighting. Carbon emissions from data centers contribute up to 3.7% of total greenhouse gas emissions, placing it ahead of aviation (2.4%), shipping (2.3%), and rice cultivation (1.5%).
- The deployment of 5G networks may boost the region's digital economy and lead to higher demand for high-bandwidth networking infrastructure, leading to major data center constructions and cooling solutions. For instance, in November 2021, Amazon Web Services (AWS) announced AWS outposts in Vietnam.
- Vietnam's data center cooling market is thriving, with both local and foreign companies looking to develop more DCs in Southeast Asian countries as demand for data storage continues to grow. A key reason is the implementation of a new data localization rule in Vietnam in 2022, which resulted in increased activity in DC investments. Efficient management of thermal loads within telecom facilities and electronic enclosures is essential, which may lead to increased demand for major cooling solutions.
Liquid Cooling to Register Significant Growth
- With the implementation of the data localization law in Vietnam, data center investments are increasing Y-o-Y. The country is witnessing investments from new entrants such as Data Center First, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions. Existing operators are expanding their presence in the country by investing in new facilities and expanding existing ones.
- Regarding network connectivity, the country has five existing submarine cables connecting the countries in Asia-Pacific and Europe, Middle East and Africa (EMEA) and the United States. Asia Direct Cable (ADC) and Southeast Asia-Japan Cable 2 (SJC2) are the two upcoming submarine cables expected to be operational by 2023/2024.
- Vietnam has greenlit a National Digital Transformation Program, targeting completion by 2025 and setting sights on 2030. The initiative aims to usher in a digital shift across governance, economy, and society while also positioning Vietnamese tech firms on the global stage.
- In Asia, the demand for high-performance computing (HPC) is surging, spurred by escalating cyber threats and a push for superior technological prowess. Leading Southeast Asia in cyber threats, Vietnam has seen the establishment of the National Supercomputing Centre (NSCC), which is now harnessing cutting-edge technologies to fortify its HPC systems and networks. Consequently, as AI and HPC gain traction, Vietnam's appetite for liquid cooling solutions is poised to grow.
Vietnam Data Center Cooling Industry Overview
The Vietnamese data center cooling market is characterized by consolidation among key players, who have gained a competitive edge in recent years. Mitsubishi Electric Corporation, Schneider Electric SE, and Rittal Gmbh & Co. KG are among the major players dominating this market. These industry leaders, holding significant market shares, are dedicated to expanding their customer base across the region. They employ strategic collaborative initiatives to enhance their market share and overall profitability.
- March 2023: STULZ, a Hamburg-based company specializing in mission-critical air conditioning, announced a significant advancement in its industry-leading CyberAir 3PRO DX series. Some units in this series are now compatible with the low-global-warming-potential (GWP) refrigerant R513A. This breakthrough development underscores the company's ongoing commitment to providing the most sustainable air conditioning systems for data centers. Furthermore, STULZ expanded its product portfolio to incorporate R513A refrigerant in more of its offerings, reinforcing its dedication to eco-friendly solutions.
Vietnam Data Center Cooling Market Leaders
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Mitsubishi Electric Corporation
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Schneider Electric SE
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Johnson Controls Inc.
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Rittal Gmbh & Co. KG
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Legrand SA
*Disclaimer: Major Players sorted in no particular order
Vietnam Data Center Cooling Market News
- August 2023: Cooling module maker Asia Vital Components (AVC) planned to expand its production site in Vietnam to meet the growing demand from its US customers. AVC Vietnam, the company's Vietnam subsidiary, operates a USD 50 million production plant covering 10 hectares at the Dong Van 3 Industrial Park in Ha Nam province near Hanoi.
- March 2023: LiquidStack announced a significant investment from HVAC company Trane Technologies to propel immersion cooling technology to new heights. LiquidStack's proprietary liquid immersion cooling technology represents a leap in sustainable data center cooling. These immersion cooling solutions align seamlessly with the company's ambitious sustainability goals, including a commitment to reduce carbon emissions within its customer base by a staggering 1 billion tons by 2030 and the ultimate achievement of net-zero emissions by 2050. This technology also offers substantial benefits to its users, contributing to their sustainability objectives.
Vietnam 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, 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 VIETNAM
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 Vietnam
6.3 Analysis of Major Data Center Contractors and Operators in Vietnam
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 of Data Center
7.2.1 Hyperscale (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 Schneider Electric SE
8.1.2 Johnson Controls Inc.
8.1.3 Vertiv Group Corp.
8.1.4 Emerson Electric Co.
8.1.5 Fujitsu General Limited
8.1.6 Hitachi Ltd
8.1.7 Daikin Industries Limited
8.1.8 Mitsubishi Electric Corporation
8.1.9 Rittal Gmbh & Co. KG
8.1.10 Munters Group
8.1.11 Legrand SA
- *List Not Exhaustive
8.2 Data Center Liquid Cooling - Key Vendor Profiles
8.2.1 Schneider Electric SE
8.2.2 Johnson Controls Inc.
8.2.3 Vertiv Group Corp.
8.2.4 Emerson Electric Co.
8.2.5 Fujitsu General Limited
8.2.6 Legrand SA
8.2.7 GIGA-BYTE Technology Co. Ltd
8.2.8 Alfa Laval AB
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Vietnam Data Center Cooling Industry Segmentation
Data center cooling is a system that helps 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 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 Vietnamese 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 (hyperscale, 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 terms of value (USD) for the above segments.
| By Cooling Technology | ||||||
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| By Type of Data Center | |
| Hyperscale (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 |
Vietnam Data Center Cooling Market Research FAQs
How big is the Vietnam Data Center Cooling Market?
The Vietnam Data Center Cooling Market size is expected to reach USD 23.33 million in 2024 and grow at a CAGR of 12.97% to reach USD 48.49 million by 2030.
What is the current Vietnam Data Center Cooling Market size?
In 2024, the Vietnam Data Center Cooling Market size is expected to reach USD 23.33 million.
Who are the key players in Vietnam Data Center Cooling Market?
Mitsubishi Electric Corporation, Schneider Electric SE, Johnson Controls Inc., Rittal Gmbh & Co. KG and Legrand SA are the major companies operating in the Vietnam Data Center Cooling Market.
What years does this Vietnam Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Vietnam Data Center Cooling Market size was estimated at USD 20.30 million. The report covers the Vietnam Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Vietnam Data Center Cooling Industry Report
Statistics for the 2024 Vietnam Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam 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.
Vietnam Data Center Cooling Market Report Snapshots
