As per the report published by Kings Research, the Global Data Center Cooling Market was valued at USD 13.12 billion in 2023. The market is projected to reach USD 31.49 billion by 2031, growing at a CAGR of 11.56% from 2024 to 2031.
The proliferation of edge data centers necessitates localized cooling solutions that are scalable and adaptable. As the demand for low-latency applications and real-time data processing continues to rise, edge data centers are being deployed to end-users to meet these requirements. In contrast to conventional centralized data centers, edge facilities frequently contend with spatial constraints and diverse environmental conditions, posing distinctive cooling challenges.
To mitigate these issues, localized cooling solutions such as micro data center cooling units, rear-door heat exchangers, and direct-to-chip liquid cooling systems are gaining prominence. These solutions are designed to provide efficient cooling in compact and distributed environments while being scalable to diverse deployment scenarios. By leveraging localized cooling technologies, edge data centers can effectively manage heat loads, optimize energy efficiency, and ensure reliable operation, thereby supporting the growing demand for edge computing applications across various industries.
Key Insights
- Based on component, the solutions segment held the largest market share of 75.13% in 2023
- Based on type, the room-based segment is set to register the highest revenue of USD 19.00 billion in 2031
- Based on product, the liquid cooling systems segment is foreseen to experience the fastest growth with a CAGR of 12.78% through the forecast period
- Based on industry, the retail segment is expected to witness the fastest growth with a CAGR of 12.93% over the forecast period
- On the basis of region, Asia-Pacific is anticipated to experience the fastest growth over the forecast period, depicting a CAGR of 12.29%
Aligned Data Centers Launches a Liquid Cooling Technology for Next-Generation Applications
January 2024: Aligned Data Centers introduced DeltaFlow, a liquid cooling technology designed to meet the demanding needs of next-generation applications and high-performance computing (HPC), including artificial intelligence (AI), machine learning (ML), and supercomputers. DeltaFlow provides customers with the adaptability to effortlessly adjust and expand their capabilities to accommodate evolving computing environments.
Integration of Cooling Systems with IT Infrastructure Equipped with AI-powered to Offer Lucrative Opportunities for Market Expansion
The integration of cooling systems with IT infrastructure, as well as AI-powered and predictive analytics, are presenting lucrative opportunities for market expansion. AI-powered management platforms enable real-time monitoring, analysis, and optimization of cooling infrastructure allowing for proactive maintenance, predictive fault detection, and dynamic adjustment of cooling parameters based on workload demands and environmental conditions. This holistic approach to data center cooling maximizes uptime and reliability and minimizes energy consumption and carbon emissions, aligning with sustainability goals.
Increasing Volume of Data Generated to Augment Market Growth
With the exponential growth in data generation and processing, driven by trends including cloud computing, big data analytics, and the internet of things (IoT), a persistent need for efficient cooling solutions to manage heat loads within data centers. High-density server racks and compute-intensive applications generate substantial heat, posing challenges for thermal management and energy consumption. Efficient cooling solutions such as liquid cooling, advanced airflow management techniques, and containment systems are essential to dissipate heat effectively and maintain optimal operating temperatures.
As data center operators strive to enhance energy efficiency, reduce operating costs, and ensure reliable performance, the demand for innovative cooling solutions is expected to surge. Moreover, stringent regulations and environmental mandates focusing on energy efficiency and sustainability are further driving the adoption of efficient cooling technologies. For instance, in March 2024, Schneider Electric opened a new cooling facility in Bangalore, India, emphasizing its commitment to developing innovative cooling solutions to meet the rapidly growing demand for data center infrastructure.
Asia-Pacific to Grow at the Highest CAGR of 12.29% in the Forthcoming Years
Based on region, the global data center cooling market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is set to grow at a staggering CAGR of 12.29% through the forecast period supported by the rapid digital transformation and the increasing adoption of cloud computing and big data analytics across the region. Countries such as China, India, Japan, and South Korea are experiencing a surge in data center investments to support the growing demand for digital services, e-commerce, and IoT applications.
Additionally, the proliferation of mobile devices, rising internet penetration, and the emergence of new technologies such as 5G and edge computing are driving the deployment of data centers to end-users, thereby fueling the demand for efficient cooling solutions. As Asia-Pacific economies continue to adopt digitalization and leverage data-driven technologies for economic growth and innovation, the demand for data center cooling solutions is poised to escalate in the foreseeable future.
- For instance, in October 2023, Mitsubishi Heavy Industries, Ltd. (MHI) introduced a 40kVA-class container-type data center featuring an air-cooled/immersion hybrid cooling solution utilizing three cooling methods simultaneously: air cooling (8kVA), immersion cooling (25kVA), and water cooling (8kVA).
Market Leaders Concentrate on Collaborations and Acquisitions to Sustain Growth
The global data center cooling market is fragmented with key players such as Rittal GmbH & Co. KG, Vertiv Group Corp., LiquidStack Holding B.V., Schneider Electric, Johnson Controls, Hitachi, Ltd., Munters, Asetek Inc., DAIKIN INDUSTRIES, Ltd., FUJITSU, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.