Data Center Cooling Market Size By Component (Solution {Air Conditioner, Chilling Unit [Air-Cooled, Water-Cooled, Glycol-Cooled], Cooling Tower, Control System, Economizer [Condensing, Non-Condensing], Liquid Cooling System [Direct-To-Chip, Immersive]}, Service {Consulting, Maintenance & Support, Installation & Deployment}), By Cooling Technique (Rack/Row-Based, Room-Based), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jun 2021  |  Report ID: GMI423  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 300   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Data Center Cooling Market size valued at over USD 10 billion in 2020 and is expected to grow at 16% CAGR from 2021 to 2027. The market growth can be attributed to the high demand for liquid-based and portable cooling technologies in data centers.

Data Center Cooling Market Overview

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Data center cooling refers to the collective processes, tools, techniques, components, and tools that ensure an accurate operating environment within a data center facility. The cooling systems help in maintaining ideal temperature level to safeguard mission-critical data and hardware in data centers.

Rising construction of hyperscale data centers to store massive amounts of data is driving the data center cooling market expansion. Leading cloud service providers are witnessing a significant increase in consumer data, exacerbating the demand for hyperscale data centers in the market. Companies operators are highly investing in innovative data center cooling technologies to maintain ideal and efficient operating conditions.

Growing government initiatives globally to reduce carbon footprints from high-power density facilities are accelerating the market progression. For instance, the U.S. Environmental Protection Agency (EPA) mandates an energy-efficiency target for data centers with a 20% reduction in carbon footprint. As data center cooling systems contribute to around 30% to 60% of energy consumption, market players are introducing advanced cooling technologies to maintain efficiency.

The ongoing coronavirus (COVID-19) pandemic negatively impacted the data center cooling market in FY2020. The temporary closure of manufacturing plants resulted in a delay in new product launches and a decline in the financial performance of market leaders. For instance, in February 2021, ABB Ltd. reported a revenue of USD 26 billion in 2020, representing a 7% decline compared to the previous year. The imposed lockdown led to an increase in the usage of social media and digital technologies, fueling the need for efficient data centers cooling solutions.

Rising development of colocation data centers will propel the demand for liquid cooling solutions in the data center cooling market

The U.S data center liquid cooling market is projected to expand at 15% growth rate through 2027 led by the growing development of colocation data centers in the country. Colocation service providers are increasingly deploying liquid cooling solutions to reduce energy consumption. For instance, in May 2020, CyrusOne Inc., one of the leading colocation providers in the U.S., deployed liquid-to-chip cooling solutions for flexible and sustainable operations. The company implemented Internet Computer Concepts (ICC) and Asetek technologies to meet the cost-saving requirements.

Development of edge data centers will foster the adoption of in-row data center cooling solutions in the market

Data Center Cooling Market Size

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The UK rack-based data center cooling market is estimated to attain a CAGR of 20% by 2027 on account of the growing establishment of edge data centers to support IoT and computing environments. For instance, in November 2020, Proximity Data Centres, an edge colocation solutions provider, opened three edge data centers located in Liverpool, Chester, and Coventry, UK. These high-density data centers use the in-row cooling technique for better serviceability, reliability, and improved energy efficiency. Compared to traditional room-based systems, the in-row cooling systems take up far less space, providing more area for IT equipment.

Increasing investments in data centers by telecom operators will impel the market revenue

IT & telecom application will observe high growth in the data center cooling market over the forecast period. The growing penetration of advanced technologies, such as AI, machine learning, and Big Data, is driving the establishment of large data centers in the telecom sector. Leading companies including AT&T Inc., Verizon Communications, Inc., and BT Group PLC are investing in data center facilities to store the massive amounts of data generated. This has resulted in increasing the market demand for energy-efficient data center cooling systems to effectively dissipate the heat. The benefits of reduced cost and high efficiency are encouraging the IT industry to adopt liquid cooling solutions.

Government standards to reduce carbon emission will boost the industry growth

North America Data Center Cooling Market

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North America data center cooling market accounted for over 35% of the market share in 2020 owing to the increasing usage of new data center cooling strategies. Market leaders are following guidelines provided by the American Society of Heating, Refrigeration, and Air conditioning Engineers (ASHRAE) on data center cooling to lower up-front costs and increase operational savings. The standards direct operators to raise the operating temperature of their data centers to 80°F or above to improve energy performance. Operating servers at high levels, in terms of temperature and humidity, save cooling costs that account for around 40% of the data center power usage.

Focus on partnerships & collaborations remains a key trend among market participants

Key companies operating in the data center cooling market include ABB Group, Adaptivcool, Airedale International Air Conditioning Ltd., Asetek AS,  Black Box Corporation, CenturyLink, Coolcentric, Ebullient, Inc.,  Integrated Eco Technologies Ltd, Interxion, Liquid Cool Solutions, Inc., Nortek Air Solutions, LLC, Rittal GmbH & Co. KG, Schneider Electric SE, STULZ GmbH, Submer Technologies, T-Systems SA, and Vertiv Co. Players operating in the industry are focusing on strategic partnerships and collaborations to remain competitive in the market.

The data center cooling market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:

Market, By Component

  • Solution
    • Air conditioner
    • Chilling unit
      • Air-cooled chillers
      • Water-cooled chillers
      • Glycol-cooled chillers
    • Cooling tower
    • Control system
    • Economizer system
      • Condensing
      • Non-condensing
    • Liquid cooling system
      • Direct-to-Chip
      • Immersive
    • Others
  • Service
    • Consulting
    • Maintenance and support
    • Installation and deployment

Market, By Cooling Technique

  • Rack/row-based
  • Room-based

Market, By Application

  • BFSI
  • Colocation
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & telecom
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Poland
    • Benelux
  • Asia Pacific
    • China
    • India
    • Japan
    • Singapore
    • Australia
  • South America
    • Brazil
    • Colombia
    • Chile
    • Argentina
  • MEA
    • GCC
    • South Africa

Frequently Asked Questions (FAQ) :

Data center cooling market size surpassed USD 100 billion in 2020 and will grow at a 16% CAGR up to 2027 led by the demand for liquid based and portable cooling technologies in datacenters.
U.S. data center liquid cooling market could witness a 15% CAGR through 2027 powered by the increasing development of colocation datacenters in the country.
Growing number of edge data centers to support IoT and computing environments means that U.K. rack-based data center cooling industry could grow at a 20% CAGR over 2021-2027.
IT & telecom applications could capture a substantial share of data center cooling industry due to growing penetration of AI, big data, machine learning, and other advanced technologies.
North America captured over 35% revenue share of data center cooling market in 2020 and should witness robust growth led by the growing adoption of new data center cooling strategies.

Premium Report Details

  • Published Date: Jun 2021
  • Pages: 300
  • Tables: 523
  • Charts / Figures: 33
  • Companies covered: 20
  • Countries covered: 20

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