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Data Center Cooling Market worth over $30bn by 2027

  • Published Date: June 23, 2021

Data Center Cooling Market size is set to surpass USD 30 billion by 2027, according to a new research report by Global Market Insights Inc.

Development in data center infrastructure in emerging countries is propelling the market growth. The construction of hyperscale data centers with power capacity of over 50 MW is leading to increased energy consumption in these facilities. The cooling systems account for around 40% of total power consumption in a data center. This has encouraged companies to deploy green data centers that use free air-cooling systems, reducing the energy consumption. The increasing deployment of green data centers equipped with energy-efficient cooling solutions will spur the market expansion.

The increasing concerns regarding water consumption have driven the need for effective techniques for cooling data centers. According to Water Resource Group, data centers in the U.S. consumed around 174 billion gallons of water in 2020. The data center operators are focusing on upgrading their infrastructure, in order to overcome such hurdles. They are implementing liquid cooling solutions that use less power and water compared to other cooling technologies. The data center cooling solution is widely used in countries that have water scarcity such as Qatar, Saudi Arabia, and the UAE, leading to better space utilization and lower energy costs.

The ongoing COVID-19 pandemic severely impacted the data center cooling market demand in FY2020 due to reduced spending on data centers. The pandemic severely disrupted several end-use industries, particularly the IT & telecom sector. This led to slowdown in various data center projects during the first half of 2020. Leading market players reduced investments in infrastructure development, negatively impacting the demand for data center cooling solutions. However, with companies focusing on expansion and new construction, the spending on data centers is expected to increase in first half of 2021.

The growing adoption of intelligent control systems for maintaining optimal balance between data center cooling capacity and IT load will augment the market progression

U.S. Data Center Cooling Market By Solution

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The control systems segment will expand at around 15% growth rate through 2027 on account of the increasing need for enhancing the operation of components, identifying faults, and reducing energy consumption levels in data centers. These systems focus on the cooling equipment and comprehend the dynamics to achieve the lowest possible energy consumption. Thffey help data center operators in improving thermal management and maximizing cooling capacity. Market players are offering intelligent control systems that ensure proper function of cooling units, removing overcooling of the space & saving energy consumption levels.

Browse key industry insights spread across 300 pages with 523 market data tables and 33 figures & charts from the report, “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 Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:

The benefit of quickly changing cooling distribution pattern by reconfiguring the floor tiles is driving the acceptance of room-based cooling solutions

The room-based cooling technique will gain significant growth in the market over the forecast time period credited to its ability to cool a large span of area in data centers. The data center cooling technique includes one or more air conditioning systems that work parallelly and push cool air into the data center while drawing out hot air. The approach also serves as a large mixer to constantly mix air and bring it to an average temperature in the room. It can also supply air by being partially constrained through a raised floor system or overhead return plenum. Due to its smaller footprints and low operating costs, it is highly preferred by small to medium-sized data centers.

Need for data center infrastructure in the healthcare sector will impel the market value

The healthcare application is anticipated to expand at a exponential rate during the forecast period. Healthcare organizations are increasingly leveraging advanced technologies, such as AI and robotics, to improve patient care. The COVID-19 pandemic has further pushed hospital executives to increasingly depend on AI and automation solutions. The acceptance of digital technologies in the healthcare sector is fueling the need for sophisticated data centers. These infrastructures deploy high-density servers that generate massive amount of heat, driving the need for powerful data center cooling solutions.

Rising internet penetration and smartphone users in developing countries will accelerate the growth for APAC region

Asia Pacific data center cooling market is predicted to expand at a CAGR of 19% by 2027 led by the rise in the number of smartphone users and growing internet penetration in developing markets including China and India. For instance, there are around 500 million smartphone users in India as of May 2021. With rise in smartphone and internet users, the need for large data centers for ensuring speed and accommodating data traffic is increasing across the region.

Investment in research & development for introducing innovative products and enhancing product portfolio is a key strategy among market leaders

Key players operating in the market include CenturyLink, Airedale International Air Conditioning Ltd., ABB Group, Integrated Eco Technologies Ltd, Rittal GmbH & Co. Kg, STULZ GmbH, Asetek AS, Nortek Air Solutions, LLC, Ebullient, Inc., Submer Technologies, Liquid Cool Solutions, Inc., Black Box Corporation, Adaptivcool, Schneider Electric SE, Vertiv Co., Interxion, T-Systems SA, and Coolcentric. The companies operating in the industry are investing highly in R&D activities for new product launches to attract a large customer base and expand business operations.

Authors: Preeti Wadhwani, Saloni Gankar