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| Data Center Cooling Market |
The data center cooling market consists of cooling systems, components, and infrastructures that are deployed across modern data centers to maintain temperature and humidity levels required to keep servers and networking equipment functioning safely. Data centers store, manage, and distribute massive amounts of data and require effective thermal management solutions to ensure personnel safety as well as uninterrupted operations. Factors such as increased construction of hyper-scale data centers, growing cloud computing services, and rising adoption of colocation and rack services have spurred growth in the global data center cooling market. The ever-increasing digital transformation trends have led to a significant rise in data traffic, which is heating up existing data centers substantially. This has boosted the demand for efficient cooling technologies that can maintain optimum thermal conditions across facilities.
The Global data center cooling market is estimated to be valued at US$ 32.91 Bn in 2024 and is expected to
exhibit a CAGR of 12.% over the
forecast period 2024 to 2031.
Key players operating in the data center cooling market are Air Enterprises, Asetek, Inc., Climaveneta, Coolcentric, Daikin Industries Ltd, Dell Technologies Inc., Fujitsu, Hitachi, Ltd., Johnson Controls, Liquid Cool Solutions Inc., Mitsubishi Electric Corp., Munters Group AB , Nortek Air Solutions, LLC, NTT Ltd., Rittal GmBH & Co. KG, Schneider Electric SE, STULZ GMBH, Telx Inc., and Vertiv Co. Several leading players are investing heavily in R&D to develop innovative cooling technologies such as liquid immersion and rear-door heat exchangers. Emerging economies in Asia Pacific and Middle East & Africa are witnessing massive construction of mega data centers that will create substantial growth opportunities for cooling system providers over the coming years. Major data center operators are rapidly scaling their infrastructure in these fast-developing markets, which is fueling demand for advanced yet cost-effective cooling technologies.
Some prominent players operating in the Data Center Cooling Market Size are also expanding their presence across different regional markets through strategic collaborations and acquisitions. For instance, Schneider Electric acquired AST Modular, a manufacturer of modular/containerized data centers in 2022 to gain a foothold in the segment. Meanwhile, NTT Ltd. is augmenting its global footprint by partnering with local data center developers and facility managers. Such initiatives are allowing vendors to tap new customer segments and geographical areas, thereby facilitating overall expansion of the data center cooling industry.
Market Drivers
1) Increased Investment in Data Center Infrastructure
- There has been a major increase in investments towards the construction of hyperscale and enterprise data centers globally. Major cloud service providers are aggressively investing in building new data center parks. For instance, Google is planning to invest over $13 billion in data center infrastructure in 2023. This upsurge in data center development has significantly driven the demand for various cooling systems and solutions.
Market Restrains
1) High Cost of Adoption
- Adoption of effective and energy-efficient cooling technologies such as
liquid immersion and rear-door heat exchangers entails huge capital expenditure
which is a major restraint. While having long term benefits and energy savings,
the upfront costs of deploying such advanced systems may not be feasible for
many mid-small data centers, thereby limiting market growth to some extent.
Segment Analysis
The Data Center Cooling Market can be segmented into Component, Type of
Cooling, Industry Type, Enterprises Size and region. The Component segment can
be further divided into Solutions and Services. The Solution segment is
projected to grow at the highest CAGR during the forecast period due to
increasing demand for efficient and scalable cooling solutions for hyper-scale
data centers. Under the Type of Cooling Segment, room-based cooling systems
dominate the market. These systems are preferred by enterprises for general
ventilation and cooling of large computer rooms and data centers. However,
rack/row-based cooling systems are expected to witness the highest growth
during the forecast period owing to their higher energy efficiency and
optimized cooling capacity compared to room-based systems.
On the basis of region, North America dominated the global Data Center Cooling
Market in 2024, accounting for the largest revenue share. This is attributed to
the presence of major data centers and cloud service providers such as Google,
Microsoft, Facebook, and Amazon in the region. However, the Asia Pacific region
is projected to witness the highest growth during the forecast period owing to
increasing data center investments from countries such as China, India,
Indonesia, Japan, and Singapore. Countries such as China and India are also
witnessing growth in cloud adoption which is positively impacting the data
center cooling market in the region. Major players in the global Data Center
Cooling Market include Air Enterprises, Asetek, Inc., Climaveneta, Coolcentric,
Daikin Industries Ltd, Dell Technologies Inc., Fujitsu, Hitachi, Ltd., Johnson
Controls, Liquid Cool Solutions Inc., Mitsubishi Electric Corp., Munters Group
AB , Nortek Air Solutions, LLC, NTT Ltd., Rittal GmBH & Co. KG,
Schneider Electric SE, STULZ GMBH, Telx Inc., and Vertiv Co.
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Center Cooling Market
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