In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Global Data Center Cooling Market Report.
The data center cooling market size is expected to grow at a CAGR of over 3% during the period 2019-2025.
The global data center cooling market size is dominated by the US. The US is one of the largest markets for data centers with more than 135 facilities that were opened or under construction in 2019, expected to be operational by June 2020. The investment in the data center cooling segment accounts for 15-20% of the overall investment. Cooling systems and IT infrastructures are the predominant consumers of power in data centers.
The spread of COVID-19 has affected major data center operations in Europe, Asia, and North America partially in the Middle East, Africa, and Latin America. Several facilities are affected due to the stoppage of construction and supply chain related challenges. Around 60 projects were scheduled to open by Q1 2020, and the remaining 40 projects were expected to be operational by Q2 2020. The COVID-19 pandemic is likely to affect a minimum of half of these projects during this period.
Data Center Cooling Market Segmentation
This research report includes detailed market segmentation by infrastructure, technique, systems, tier standards, and geography. The application of cooling systems depends on IT loads, system capacities, expenditure, and future requirements. The investment is expected to be about 15-20%, depending on the facility design and IT infrastructure. Data center operators are looking for efficient solutions to bring down CAPEX and OPEX, reduce space, and decrease the power consumption of cooling units.
The market for CRAC & CRAH units will continue to grow among data centers that use DX or chilled-water solutions. The development of hyperscale and large data centers is likely to adopt 2N CRAC or CRAH units. CRAC and CRAH units will continue to be the largest revenue contributor in the market.
The use of chilled water systems is highly prevalent in Southeast Asia, the Middle East, and Africa and parts of APAC. The operators in the US, Europe, Nordic, China, Australia, New Zealand, Canada, and Japan are mainly using hybrid systems with minimal compressor support during peak summers and free data center cooling solutions without the need for a compressor. Innovations in the free cooling space will continue to grow in the market during the forecast period.
Across the world, there are over 350 facilities in the Tier III category. This trend is likely to continue during the forecast period, with several operators expected to move to the Tier IV category based on the growth in the rack power density and critical applications. North America is the most dominating region with Tier III projects followed by Western Europe and Asia. The data center market in India 19 witnessed continuous investment in cloud adoption and big data analytics.
Most new facilities are designed to be of Tier III standards with a minimum of N+1 redundancy. The facilities can also be reconfigured with up to 2N+1 redundancy with the incorporation of flexible designs. Tier IV data centers are developed as modular facilities. They generate more revenue for the market, with focused investment on highly efficient cooling systems. Increased investments from hyperscale data center service providers are expected to be increasing demand for data center Tier IV market during the forecast period.
Opportunities & Trends
Growing Rack Power Density
District Heating By Data Centers
Growth In Construction Of Cryptocurrency Data Centers
Increased Adoption Of Monitoring & Automation Solutions
Data Center Innovations Targeting Cooling
Rising Demand For Edge Data Centers
Colocation Investments In Data Center Cooling Market
Hyperscale Data Centers To Support Growth Of Rack-Level Cooling Solutions
Facility Development Targeting PUE Of less than1.5
Increased Modular Data Center Deployment
Cooling Systems Driving Power Consumption
Increasing Water Consumption By Data Centers
Rising Carbon Emissions From Data Centers
Key Vendor Analysis
The data center cooling market comprises of global and local providers. There are several infrastructure providers in the market offerings specific products or a complete range of infrastructure solutions for data centers. Over the period, the growing consumption of electricity by data center cooling units has led to multiple innovations.
Innovations across infrastructure have led to the development of new products that have increased the efficiency of operations by 90% and reduce OPEX by up to 50%. On November 27, 2019, Schneider Electric (SE) announced the launch of its second Smart Factory facility in Bengaluru, Karnataka, India.