Data Center Cooling Market - Global Outlook and Forecast 2020-2025

Data Center Cooling Market - Global Outlook and Forecast 2020-2025

  • May 2020 •
  • 376 pages •
  • Report ID: 5482346 •
  • Format: PDF
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.

The following factors are expected to contribute to the growth of the data center cooling market during the forecast period:
• Growth in Construction of Cryptocurrency Data Centers
• Increased Popularity of District Heating Concept
• Increased Adoption of Automation and Monitoring Solutions
• High Demand for Edge Data Centers

The report considers the present scenario of the data center cooling market during the forecast period and its market dynamics for the forecast period 2020?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report profiles and examines leading companies and several other prominent companies operating in the market.

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.

Segmentation by Infrastructure
• Cooling Systems
• Other infrastructure
Segmentation by Systems
• Chillers
• Cooling Towers & Dry Coolers
• Economizers & Evaporative Coolers
• Others
Segmentation by Technique
• Air-based
• Liquid-based
o Water-based
o Direct liquid & immersion
Segmentation by Tier Standards
• Tier I &II
• Tier III
• Tier IV


The North American data center cooling market is expected to reach over $3.5 billion by 2025. The region has always been a strong driver for the data center market growth, with increased construction of hyperscale facilities with over 20 MW of power capacity. The market has witnessed an increase in the investment of Tier III facilities. Most Tier III facilities in the US are configuring 2N redundancy cooling systems. North America has witnessed the construction of Tier IV facilities across multiple cities. The data center infrastructures has evolved significantly in the past decade because of the need to reduce OPEX, increase efficiency, and decrease carbon emissions.

By Geography
o China & Hong Kong
o Australia & New Zealand
o India
o Japan
o Southeast Asia
o Indonesia
o Singapore
o Malaysia
o Thailand
o Other Countries
o Rest of APAC
• Central & Eastern Europe
o Russia & Czech Republic
o Poland & Austria
o Other Countries
• Nordic
o Denmark
o Norway
o Sweden
o Finland & Iceland
• Western Europe
o UK
o Germany
o Netherlands
o France
o Ireland
o Other Countries
• North America
o US
o Canada
• Latin America
o Brazil
o Other Countries
• Middle East
o Other Middle Eastern Countries
• Africa
o South Africa
o Morocco
o Other African Countries

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.

Key Company Profiles
• Airedale Air Conditioning
• Rittal
• Schneider Electric
• Vertiv

Other Prominent Vendors
• 3M
• Asetek
• Aquila Group
• BasX Solutions
• Carrier
• ClimateWorx
• Climaveneta (Mitsubishi Electric)
• Condair Group
• CoolIT Systems
• Daikin Applied (Daikin Industries)
• Data Aire
• Delta Group
• Emicon
• Green Revolution Cooling (GRC)
• Johnson Controls
• KyotoCooling
• Motivair Corp.
• Munters
• Nortek Air Solutions
• Pentair (Schroff)
• Qcooling
• Renovo Zhuhai Co.
• Swegon
• Trane (Ingersoll Rand)
• Vigilent
• Wakefield-Vette

1. What is the data center cooling market size and growth rate in 2020?
2. How COVID-19 will impact the demand for data center cooling?
3. What are the factors impacting the growth of the data center cooling market
4. What are the drivers, trends, and challenges in the market?
5. Who are the key players and their market share?

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