Data Center Cooling Market Information and Industry Trends to 2024

In terms of the regional growth outlook, the global data center cooling market space has been highly-dominated by North American nations. Owing to the increasing adoption of cloud computing and big data analytics, the need to deploy highly-efficient data storage capabilities has subsequently placed a considerable burden on the national power facilities. Moreover, the presence of technology behemoths such as Microsoft, Google, and Facebook have further added to the popularity of the North America data center cooling industry.

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The rising growth fortunes of the data center cooling market can aptly be credited to an expansive application spectrum which includes healthcare, energy & utility, retail, BFSI, IT & telecom to name a few. With the increasing prominence of advanced technologies such as IoT, cloud computing, and big data analytics, the necessity to construct large data centers has been on the rise in developed and emerging economies alike. As data centers consume enormous amounts of energy to function, the significance of installing energy-efficient cooling systems cannot be stressed more. As per a few reliable sources, data centers would emerge as the largest energy consumers globally with an estimated utilization of approximately 20 percent of all electricity to be produced by 2025.

Liquid cooling systems to lead the overall component segment of data center cooling industry

Liquid cooling systems have increasingly demonstrated a promising potential to lower the overall energy required to run large data centers – a factor that has affirmed the utility of these coolants in the overall data center cooling market. In some instances, these technologies have even had a positive impact on the server processing capabilities in small and medium-sized data centers that often are not as energy efficient as larger facilities. Moreover, it has been observed that the number of racks installed across large data centers have kept on growing in the recent past which has invariably compelled numerous operators to choose liquid cooling systems over the traditional methods of cooling.

In this regard, it would be prudent to acknowledge the efforts being undertaken by prominent liquid coolant manufacturers to unveil highly-advanced and refined versions of coolants that have swamped the data center cooling market in the recent years. Citing an instance to underscore the significance of such energy-efficient liquid coolants, Lenovo has recently presented Neptune liquid cooling at the International Supercomputing Conference (ISC) in Germany. The Chinese tech giant has claimed that the new three-pronged approach to liquid cooling ensures a staggering 50 percent increase in overall efficiency of data centers.

One of the largest operational expenses in setting up a data center is the cost of energy. In a traditional data center, cooling costs alone can easily represent 25% or more of total energy costs which explains the rising significance of the overall data center cooling market. Speaking in the similar context, the developed economies in the North American region have been witnessing massive investment from private sector firms to set up large data centers. As a matter of fact, the U.S. data centers space has reportedly recorded an astonishing investment of around USD 18.2 billion in the year 2017, according to a few trusted estimates. These statistics are a testament to the humongous business opportunities awaiting the North America data center cooling industry giants.

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Driven by rising demand for cost-effective and eco-friendly solutions, the commercialization scale of data center cooling market is anticipated to observe a massive uptick in the forthcoming years. In fact, as per a research study undertaken by Global Market Insights, Inc., the overall remuneration portfolio of the worldwide data center cooling industry is projected to surpass USD 20 billion by 2024.

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