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Data Center Cooling Market Synopsis

Data Center Cooling Market Size Was Valued at USD 14.9 Billion in 2023, and is Projected to Reach USD 36.9 Billion by 2032, Growing at a CAGR of 10.6% From 2024-2032.

The data centers are considered to be one of the critical components in most organizations, as they serve for storage, networking, and backup. They are fundamentally different from earlier beliefs as the necessity of higher computing capacity in computer networks is caused by large amounts of data generated. It means that the energy demand of data centers has grown over time. This increase in data centre energy usage has brought an added dimension to financial as well as environmental uses. These facts have made it imperative to focus on the cooling techniques used in data centers to enhance their efficiency. Data center cooling can be described as the process of measuring, monitoring and controlling the usage of data center commodities and energy use in IT facilities like servers, network switches, storage systems, computer room air conditioners, power distribution units among others.

  • Due to the emerging few concerns linked with the availability of data storage including the backup facilities, archiving, managing of verification and authorization etc. , the data centers need to utilize their IT hardware infrastructure and services include servers, PDUs and other related components in an optimum and efficient manner. Thus, the proper functioning of a data center is predicated on planning, analysis, and load power, server, and automations processes management.
  • Additionally, the advancement of over-the-top platforms and streaming services continues to create a massive demand for storage, a factor that is expected to gain momentum in the years to come as the volumes of data continue to rise. This is because cloud services are rapidly growing, the significance of big data is increasing, and the interconnectivity of devices is constantly advancing, so constructing new data centers is being stepped up. Each one of these factors are expected to propel the demand for data center cooling systems in the future. This demand is directly proportional to the growth of the flow of data center facilities across the world. The raise in IT infrastructure acquisition following the pandemic situation is positively contributing to the opportunities for the development of new and additional data centers globally. In addition, software data centers are also affecting the market growth by providing more automated form is also playing role.
  • The Covid-19 pandemic has increased the emphasis on digital transition more significantly, making it mandatory to establish data center complexes that can offer scalable, secure, and flexible solutions. Hence, data center cooling industry acquires a positive market prospect when investments in new data center facilities are on the rise. However, high investment costs for proper arrangement and maintenance for these data center solutions along with the requirement of specialized structure are few factors that are expected to restrict the industry growth. However, cooling problems under events like power failures and lower carbon contribution are aspects expected to be a challenge to the industry. As a result, the COVID-19 pandemic significantly disrupted this market. Some key problems that influenced data center cooling technology manufacturing & selling are the absence of employees and lowest investment costs.

Data Center Cooling Market Trend Analysis

Rise in Demand for Rack Cooling Solutions

  • The need for high computing capacity affected the standards which defined data centers operation. This makes it more complex which means that relying solely on the CRAC units directly will not suffice. Unfortunately, it has become normal for data center racks to be poorly cooled today. According to recent research, it was revealed that almost eighty per cent of server racks are hot. This problem results in the biggest nightmare for data center administrators, that is downtime.
  • Introducing the rear door heat exchange (RDHX) system may help data center retain rack density effectively. To achieve this a heat exchanger is fitted on the rear doors of the server racks so as to absorb heat. It is then conveyed to the matrix or coil of the heat exchanger. It's like solving two issues at once: Some of the challenges include; poor heat dissipation and extremely high energy utilization. It is also important to note that RDHX can be used for new designs as well as retrofitting to existing data centers. It is a part of the rack enclosure assembly in the construction of a new rack. Its integration can also enhance the cooling system by installing it to existing high-density racks. It can also adequately cool the structure without a complicated system of air distribution with the help of under floor ducts. Computer chips, including processors and other electrical components in servers and databases, become denser, producing more heat and exposed to external air. This is creating a humongous demand for new cooling solutions and products in the data centers and hence fuelling the Data center cooling market.

Rise in the Demand for storage of Data

  • There has been a significant shift in data center infrastructure owing to the need for added space to hold copious amounts of data that is constantly being produced. A growth in data centers has been realized and these increase the world’s energy consumption and heat generation. This is expected to create immense demand for energy conservation in cooling processes in the near future. As a result of Industry 4. 0 and the use of technological innovations in industries, there have been many changes in business. There are drastic changes in spending on infrastructure on 0 and IoT. Therefore, incorporating more sophisticated data center cooling services will most probably assist in maximizing on power usage, which can further enhance the efficiency of data center and decrease its costs.

Data Center Cooling Market Segment Analysis:

Data Center Cooling Market is segmented based on Product, Data Center Type, Cooling Technique, and Industry

By Data Center Type, large scale segment is expected to dominate the market during the forecast period

  • On the basis of type of data centers, the data center market is segmented as large scale data centers, medium scale data centers and small scale data centers. It is expected that the large scale segment will continue to dominate the data center cooling industry in the forecast period. The use of cloud solutions is rising steadily and the volume of data that they create is becoming enormous. Because of this, the need for more servers and storage space to accommodate this data has become more pronounced. These aspects are expected to drive the need for greater size data centers.

By Product, Liquid cooling segment held the largest share in 2023

  • By product type, the market consists of air conditioners, precision air conditioners, liquid cooling, air handling unit, and other products. Liquid cooling segment is anticipated to witness a higher CAGR during the upcoming years. Liquid cooling has significant benefits for more specific applications. For example, a liquid cooling solution shields servers in edge data centers, and a high heat dissipation capability is perfect forusing blockchain, AI, IoT and other solutions. The outcomes contributed by the liquid cooling are more capacity, and less cost and effect on the environment. A liquid cooling device is capable of dealing with high heat and high AC loads per unit in the server. Individual ac loads in a large data center can be provided by linking different units of liquid cooling equipment in order to suitably control the usable power level. The following are some of the organizations that are adopting the liquid cooling techniques:
  • For example, Meta had announced in the public domain that starting in April 2023, there was going to be a modification in the liquid cooling method involved in AI-based data center design. For a more oriented approach towards Artificial Intelligence within the company, the focus of the data center design strategy is being developed towards getting the best out of new facilities.
  • Looking at the market distribution for the year 2022, the air conditioners segment comprised of a larger market share. Air conditioners are commonly used in the data center environments to a large extent. Convection type air conditioning systems are considered to be effective means of air cooling. Air conditioners are quite cheap since they are quite cheap, a vital aspect since they are quite insufficient in as far as energy consumption is concerned. These aspects are expected to contribute towards the growing need for liquid cooling data centres in the future years.

Data Center Cooling Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

  • North America has been identified to be the largest market for data center cooling globally and it is predicted to grow at the rate of 10% CAGR. Forecasts on the Asia Pacific market shows that it will reach 94% by the end of the year period of the forecast. This is primarily due to concentrated colocation service providers like Equinix, AT&T and others established in the region, especially in United States and Canada. Besides, robust data centre uptake and leasing activities in Northern Virginia, together with a burgeoning population of cloud users, is expected to boost the market.
  • Furthermore, an emerging trend with respect to elucidating the Canada market for data center cooling can also be seen in this aspect – the gradual shifting of operational load to the hosting companies that offer colocation, cloud, and other related services. The U. S is the leading country in North America in terms of utilization of data systems and has this data center facilities. Data centers are expensive, and organizations in the United States invest a lot of money and resources into them. Hence, these factors are expected to propel the North American market. Google Plans for additional Data Center of up to USD 750 million in Nebraska in the future to expand the opportunities of development for the locals and their businesses with the help of the digital services.

Active Key Players in the Data Center Cooling Market

  • Asetek, Inc. (U.S.)
  • Rittal GmbH & Co. KG (Germany)
  • Schneider Electric (France)
  • Coolcentric (U.S.)
  • Vertiv Group Corp. (U.S.)
  • STULZ GMBH (Germany)
  • Hitachi, Ltd. (Japan)
  • Nortek (Italy)
  • LiquidStack Holding B.V. (U.S.)
  • Munters (India)
  • Other Key Players

Key Industry Developments in the Data Center Cooling Market:

  • March 2023 – A lubricant brand, Castrol, collaborated with GRC’s ElectroSafe Fluid Partner Program as the company introduced its immersion cooling fluids to the platform to assist other businesses in decreasing water and energy usage while operating data centers. GRC (Green Revolution Cooling), is one of the most significant players in the sphere of data center immersion cooling.
  • June 2022 – One Asian Network Limited revealed that its data center in Hong Kong was to be provided with an solution that can absorb cold water in August 2022. In this regards, the new solution is said to be effective at lowering the power density for data centers and offering very high availability. It is a revolutionary change from traditional methods of transitioning to a green economy by sustainable improvement in technologies, innovation and best practices in companies which employ high energy.

Global Data Center Cooling Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 14.9 Bn.

Forecast Period 2024-32 CAGR:

10.6 %

Market Size in 2032:

USD 36.9 Bn.

Segments Covered:

By Product

By Data Center Type

  • Large Scale
  • Medium Scale
  • Small Scale

By Cooling Technique

  • Room-based Cooling
  • Rack-based Cooling
  • Row-based Cooling

By Industry

  • BFSI
  • IT and Telecom
  • Manufacturing
  • Retail
  • Healthcare
  • Energy and Utilities
  • Others

By Region

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)
  • Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)
  • South America (Brazil, Argentina, Rest of SA)

Key Market Drivers:

  • Increasing necessity to optimize infrastructure budgets in order to attain business growth.

Key Market Restraints:

  • Legislation and regulations pertaining to data protection may impede market expansion.

Key Opportunities:

  • Growing popularity of OTT platforms and streaming services

Companies Covered in the report:

  • Asetek, Inc. (U.S.) Rittal GmbH & Co. KG (Germany) Schneider Electric (France) Coolcentric (U.S.) Vertiv Group Corp. (U.S.) STULZ GMBH (Germany) Hitachi, Ltd. (Japan) Nortek (Italy) LiquidStack Holding B.V. (U.S.) Munters (India), and Other Major Players.
  1. INTRODUCTION
    1. RESEARCH OBJECTIVES
    2. RESEARCH METHODOLOGY
    3. RESEARCH PROCESS
    4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
    5. MARKET SEGMENTATION
  2. EXECUTIVE SUMMARY
  3. MARKET OVERVIEW
  4. GROWTH OPPORTUNITIES BY SEGMENT
  5. MARKET LANDSCAPE
    1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
    2. INDUSTRY VALUE CHAIN ANALYSIS
    3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    4. MARKET TREND ANALYSIS
    5. REGULATORY LANDSCAPE
    6. PESTLE ANALYSIS
    7. PRICE TREND ANALYSIS
    8. PATENT ANALYSIS
    9. TECHNOLOGY EVALUATION
    10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
      1. Geopolitical Market Disruptions
      2. Supply Chain Disruptions
      3. Instability in Emerging Markets
    11. ECOSYSTEM
  6. DATA CENTER COOLING MARKET BY PRODUCT (2017-2032)
    1. DATA CENTER COOLING MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3.  AIR CONDITIONERS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. PRECISION AIR CONDITIONERS
    5. LIQUID COOLING
    6. AIR HANDLING UNIT
    7. OTHERS (AIR ECONOMIZERS, HEAT REJECTION, CHILLERS)
  7. DATA CENTER COOLING MARKET BY DATA CENTER TYPE (2017-2032)
    1. DATA CENTER COOLING MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3. LARGE SCALE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. MEDIUM SCALE
    5. SMALL SCALE
  8. DATA CENTER COOLING MARKET BY COOLING TECHNIQUE (2017-2032)
    1. DATA CENTER COOLING MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3. ROOM-BASED COOLING
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. RACK-BASED COOLING
    5. ROW-BASED COOLING
  9. DATA CENTER COOLING MARKET BY INDUSTRY (2017-2032)
    1. DATA CENTER COOLING MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3. BFSI
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. IT AND TELECOM
    5. MANUFACTURING
    6. RETAIL
    7. HEALTHCARE
    8. ENERGY AND UTILITIES
    9. OTHERS
  10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. DATA CENTER COOLING Market Share By Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
    2. ASETEK, INC. (U.S.)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
    3. RITTAL GMBH & CO. KG (GERMANY)
    4. SCHNEIDER ELECTRIC (FRANCE)
    5. COOLCENTRIC (U.S.)
    6. VERTIV GROUP CORP. (U.S.)
    7. STULZ GMBH (GERMANY)
    8. HITACHI, LTD. (JAPAN)
    9. NORTEK (ITALY)
    10. LIQUIDSTACK HOLDING B.V. (U.S.)
    11. MUNTERS (INDIA)
  11. GLOBAL DATA CENTER COOLING MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Product
      4. Historic And Forecasted Market Size By Data Center Type
      5. Historic And Forecasted Market Size By Cooling Technique
      6. Historic And Forecasted Market Size By Industry
      7. Historic And Forecasted Market Size By Segment5
      8. Historic And Forecasted Market Size By Segment6
      9. Historic And Forecasted Market Size By Country
        1. USA
        2. Canada
        3. Mexico
    3. EASTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Russia
        2. Bulgaria
        3. The Czech Republic
        4. Hungary
        5. Poland
        6. Romania
        7. Rest Of Eastern Europe
    4. WESTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Germany
        2. United Kingdom
        3. France
        4. The Netherlands
        5. Italy
        6. Spain
        7. Rest Of Western Europe
    5. ASIA PACIFIC
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. China
        2. India
        3. Japan
        4. South Korea
        5. Malaysia
        6. Thailand
        7. Vietnam
        8. The Philippines
        9. Australia
        10. New-Zealand
        11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Turkey
        2. Bahrain
        3. Kuwait
        4. Saudi Arabia
        5. Qatar
        6. UAE
        7. Israel
        8. South Africa
    7. SOUTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
  12. INVESTMENT ANALYSIS
  13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies

Global Data Center Cooling Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 14.9 Bn.

Forecast Period 2024-32 CAGR:

10.6 %

Market Size in 2032:

USD 36.9 Bn.

Segments Covered:

By Product

By Data Center Type

  • Large Scale
  • Medium Scale
  • Small Scale

By Cooling Technique

  • Room-based Cooling
  • Rack-based Cooling
  • Row-based Cooling

By Industry

  • BFSI
  • IT and Telecom
  • Manufacturing
  • Retail
  • Healthcare
  • Energy and Utilities
  • Others

By Region

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)
  • Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)
  • South America (Brazil, Argentina, Rest of SA)

Key Market Drivers:

  • Increasing necessity to optimize infrastructure budgets in order to attain business growth.

Key Market Restraints:

  • Legislation and regulations pertaining to data protection may impede market expansion.

Key Opportunities:

  • Growing popularity of OTT platforms and streaming services

Companies Covered in the report:

  • Asetek, Inc. (U.S.) Rittal GmbH & Co. KG (Germany) Schneider Electric (France) Coolcentric (U.S.) Vertiv Group Corp. (U.S.) STULZ GMBH (Germany) Hitachi, Ltd. (Japan) Nortek (Italy) LiquidStack Holding B.V. (U.S.) Munters (India), and Other Major Players.
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Frequently Asked Questions :

What would be the forecast period in the Data Center Cooling Market research report?

The forecast period in the Data Center Cooling Market research report is 2024-2032.

Who are the key players in the Data Center Cooling Market?

Asetek, Inc. (U.S.) Rittal GmbH & Co. KG (Germany) Schneider Electric (France) Coolcentric (U.S.) Vertiv Group Corp. (U.S.) STULZ GMBH (Germany) Hitachi, Ltd. (Japan) Nortek (Italy) LiquidStack Holding B.V. (U.S.) Munters (India), and Other Major Players.

What are the segments of the Data Center Cooling Market?

The Data Center Cooling Market is segmented into product, data center type, cooling technique, industry, and region. By product, the market is categorized into air conditioners, precision air conditioners, liquid cooling, air handling unit, and other. By data center type, the market is categorized into large scale, medium scale, and small scale. By cooling technique, the market is categorized into room-based cooling, rack-based cooling, and row-based cooling. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

What is the Data Center Cooling Market?

Data center cooling is thereby understood as the total tools and procedures, equipment and techniques that help maintain the optimum temperature inside a data center building. Cooling solutions are used in data center operating to regulate temperate and ensure that it is within the acceptable range in data center. Data centers operate non-stop to acquire, store, protect and manage massive volumes information.

How big is the Data Center Cooling Market?

Data Center Cooling Market Size Was Valued at USD 14.9 Billion in 2023, and is Projected to Reach USD 36.9 Billion by 2032, Growing at a CAGR of 10.6% From 2024-2032.