Global Data Center Cooling Market to Reach US$ 26.07 Billion by 2031 Driven by Growing Demand for Energy-Efficient Solutions | Asia Pacific is Emerging New Hub For Data Centers: Astute Analytica
The data center cooling market has significant potential for growth, driven by the increasing number of data centers and the need for energy-efficient solutions. Projections indicate that the market will be valued at US$ 26.07 billion by 2031. The Asia Pacific region, in particular, is emerging as a significant market, with the opening of several new data centers. Companies operating in the market should focus on developing innovative, energy-efficient solutions to meet the evolving needs of data centers.
New Delhi, April 17, 2023 (GLOBE NEWSWIRE) -- The global data center cooling market has experienced significant growth, with a value of US$ 8.49 billion in 2022. Projections indicate that this growth will continue, with the market expected to reach a valuation of US$ 26.07 billion by 2031. The market is growing at a CAGR of 13.82% during the forecast period.
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Data centers are essential components of modern computing and are used by businesses and organizations to store and process vast amounts of data. However, as per Astute Analytica, data centers require large amounts of power to operate, and this is a growing concern as they are expected to consume 20% of the world's power supply by 2025. This highlights the need for energy-efficient solutions, including data center cooling systems, which can significantly reduce power consumption and associated costs.
The total number of data centers in the world is estimated to be 8,000, and this number is likely to increase as businesses and organizations continue to adopt digital technologies. This presents an opportunity for companies operating in the data center cooling market to develop innovative solutions that meet the unique needs of different types of data centers.
Furthermore, the COVID-19 pandemic had a significant impact on the data center infrastructure spending in 2021, reducing it by 10%. However, the market is expected to recover, and global IT data center spending is projected to reach $222 billion in 2023. This indicates that there is a growing demand for data center services and technologies, including data center cooling solutions.
The US hosts approximately 33% of the world's data centers. This presents an excellent opportunity for data center cooling providers to focus their efforts in the US market and develop solutions tailored to the unique needs of US-based data centers. The US market is one of the largest and most competitive in the world, with significant demand for energy-efficient and reliable data center cooling solutions.
*High Cost of Initial Investment to Acts as Hurdle in Growth of Data Center Cooling Market *
The installation of a cooling system in a data center requires a significant initial investment cost. The amount of money needed for installation varies depending on factors such as the size of the data center, the type of cooling system used, and the level of redundancy required. Astute Analytica’s study suggests that a traditional air conditioning-based cooling system for a data center can cost anywhere from $500,000 to $2 million for a data center with a capacity of 500 kW. For larger data centers with capacities of 5 MW or more, the cost of a traditional cooling system can range from $10 million to $30 million.
However, newer and more efficient cooling technologies such as liquid cooling can have a higher initial investment cost but may provide long-term cost savings in terms of energy consumption and maintenance. Liquid cooling solutions can range from $1,000 to $2,000 per kW of cooling capacity, with installation costs varying based on the complexity of the system and the location of the data center.
The amount of money spent on the cooling system in the global data center cooling market as a percentage of the total cost of the data center also varies based on the capacity of the data center. For smaller data centers with capacities of 500 kW or less, cooling systems may represent 15-20% of the total cost of the data center. For larger data centers with capacities of 5 MW or more, cooling systems may represent only 5-10% of the total cost.
It is worth noting that while the initial investment cost of a cooling system in a data center may be high, it is important to consider the long-term cost savings that can be achieved through increased energy efficiency and reduced maintenance costs. Investing in an efficient cooling system can also help to reduce the environmental impact of data centers and may be required by government regulations in some areas.
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*Asia Pacific is Emerging Hub for Data Center Cooling Market, Capture Over 28% Market Share *
The Asia Pacific region is emerging as a new hub for data centers, driven by the growing demand for digital services and the adoption of cloud computing technologies. As a result, the region is projected to offer lucrative opportunities for the data center cooling market. Currently, the number of data centers in the Asia Pacific region is significant, with countries like China and India leading the way. According to recent reports, China is home to over 443 hyperscale data centers, while India has over 163 data centers. Additionally, other countries like Singapore, Japan, and Australia are also significant players in the region's data center market.
Recent advancements and developments in the region have further fueled the growth of the data center cooling market. For example, Singapore's recent launch of its first green data center, the BCA-IMDA Green Mark Platinum data center, has highlighted the importance of energy-efficient and sustainable data center operations. Additionally, China's push for renewable energy sources has led to the development of several green data centers in the country, which are expected to drive the growth of the data center cooling market.
the Asia Pacific region is expected to witness significant growth in the data center market, with the opening of several new data centers by 2031. For example, The Dongyuemiao Data Center Project in Hubei Province, China, completed its first phase, with Huawei Digital Power providing the infrastructure solution. The data center is located on the bank of Three Gorges Dam and will be the largest green data center cluster in Central China once all three phases are completed. It will house 26,400 racks and span over 100,000 square meters.This presents an excellent opportunity for data center cooling providers to capitalize on the growing demand for energy-efficient and reliable data center cooling solutions in the region.
Recent announcements related to data center cooling market in India and China:
· India: In March 2022, NTT Ltd announced that it plans to build two new data centers in Mumbai and Chennai, India, with a total investment of $2 billion. The facilities will have a combined capacity of 100 MW and will support the growing demand for data center services in India.
· China: In February 2022, China Mobile announced plans to build a new data center in Shanghai, with an investment of $565 million. The facility will have a capacity of 200 MW and will support the growing demand for cloud computing and 5G services in the region.
· India: In December 2021, Yotta Infrastructure announced that it plans to build a new data center in Chennai, India, with an investment of $635 million. The facility will have a capacity of 30 MW and will cater to the growing demand for data center services in the region.
· China: In November 2021, Alibaba Cloud announced that it plans to build a new data center in Nantong, China, with an investment of $1.4 billion. The facility will have a capacity of 200 MW and will support the growing demand for cloud computing services in the region.
· India: In October 2021, STT GDC India announced that it plans to build a new data center in Bengaluru, India, with an investment of $600 million. The facility will have a capacity of 18 MW and will cater to the growing demand for data center services in the region.
*Competitive analysis: Top 4 Players Hold Over 45% Market share, Vertiv Leads the Way with Over 22% Revenue Share*
The data center cooling market is highly competitive, with several players vying for market share. According to the information provided, the market is slightly oligopolistic, with the cumulative market share of the four major players close to 45%.
Vertiv is currently the largest player in the global data center cooling market, holding more than 22% of the market share. The company offers a range of data center cooling solutions, including precision air conditioning units, free cooling systems, and liquid cooling systems. Vertiv's extensive product portfolio and strong market presence have helped it maintain its leading position in the market.
Schneider Electric is the second-largest player in the market, with a market share of around 13%. The company offers a range of data center cooling solutions, including room air conditioning units, in-row cooling systems, and chilled water systems. Schneider Electric's broad product portfolio and strong brand reputation have helped it maintain a significant market share.
Other notable players in the data center cooling market include STULZ, Rittal, Cool centric, Green Revolution Cooling, Asetek Inc., and Iceotope. These companies offer a range of data center cooling solutions, including air conditioning units, chillers, and cooling towers. These players have a smaller market share but are still significant players in the market.
*Some of the Top Market Players Are:*
· Asetek Inc.
· Coolcentric
· Daikin Industries Ltd
· Green Revolution Cooling
· Iceotope
· Johnson Controls International PLC
· Liquid Cool Solutions Inc.
· LiquidStack
· Mitsubishi Electric Corporation
· Munters Group AB.
· Nortek Air Solutions
· Parker Hannifin
· Rittal GmbH & Co. KG
· Schneider Electric SE
· SPX Cooling Technologies, Inc
· STULZ GMBH
· Telx Holdings, Inc. (Digital Realty Trust, Inc.)
· Vertiv Co.
· Other Prominent Players
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