Data Center Cooling Solutions Market size to record USD 27.95 billion growth from 2023-2027, Greater use of HPC is one of the key market trends, Technavio

NEW YORK, May 8, 2024 /PRNewswire/ -- The global data center cooling solutions market size is estimated to grow by USD 27.95 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of almost 24.36% during the forecast period.

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Key Trends Fueling Growth

• Greater use of HPC:
• High Performance Computing (HPC) systems offer enhanced computing power, vital for scientific and engineering tasks. These systems, comprising clusters of processors with 16-64 nodes, excel in handling complex operations like physical simulations and weather forecasting. Measured in FLOPS, HPC outperforms standard computers, making it indispensable for various industries.
• Recent advancements, including cloud-based HPC, are attracting small and medium enterprises (SMEs) due to lower initial investments. The surge in big data and cloud computing fuels the demand for data centers supporting HPC. Data centers leverage cloud-based services and virtualization for enhanced scalability and reliability.
• To ensure uninterrupted performance, modern data centers deploy high-density servers and efficient cooling solutions. The exponential growth in HPC usage necessitates robust data centers, driving demand for data center power components.
• As businesses increasingly rely on data centers, operators must prioritize installing reliable power infrastructure to meet vendor needs and maintain seamless operations.

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Major Challenges:

• Environmental concerns
• Environmental challenges like temperature fluctuations, humidity, and dust affect data center operations globally. Operators in adverse climates must use humidity controllers to manage sudden changes. Dust can cause fan failures and connectivity issues. To address these, operators must carefully design cooling systems.
• Despite challenges, demand for data center capacity is rising due to technologies like cloud computing and IoT, increasing IT costs and carbon emissions. CO2 emissions stem from server operations and non-renewable energy use. Microsoft reduced emissions by minimizing generator use. Initiatives like Singapore's TDC project aim to reduce cooling needs by up to 40%.
• Successful trials could eliminate cooling systems entirely. Telecom Korea achieved a 36% reduction in cooling with higher operating temperatures. Such advancements may disrupt the market in the future.

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Segmentation Overview

1. Application 
• 1.1 Air conditioning
• 1.2 Economizers
• 1.3 Cooling towers
• 1.4 Chillers
• 1.5 Others
2. Geography 
• 2.1 APAC
• 2.2 North America
• 2.3 Europe
• 2.4 Middle East and Africa
• 2.5 South America

1.1 Air conditioning- Computer Room Air Conditioning (CRAC) units are vital for maintaining optimal conditions in data centers worldwide. By regulating airflow, humidity, and temperature, they mitigate hot spots within the facility. Employing a DX refrigeration cycle and a compressor, CRAC units efficiently cool the air before it's circulated through the data center racks. Similarly, Computer Room Air Handler (CRAH) units play a crucial role by utilizing water-chiller systems to manage heat generated by IT equipment. While both units may appear similar, their operational principles differ significantly.

• Precision air conditioners have emerged as indispensable tools for data centers due to their ability to offer precise temperature and humidity control. With the increasing heat density resulting from high-performance computing infrastructure and virtualization, the demand for precision air conditioners is expected to surge. Despite the COVID-19 pandemic's impact on global economies, the development of IT infrastructure continues, driving the construction of new data centers. Major expansions, like Equinix's SG5 facility in Singapore, further contribute to the growing demand for air conditioning systems in the data center market.

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Analyst Review

The Data Center Cooling Solutions Market is witnessing a surge in demand due to the rapid growth of data-intensive applications, IoT, and digital services. With the advent of the 5G internet era, the need for efficient cooling technologies has become paramount to tackle temperature surges and reduce power consumption. IT industry players, especially medium-sized enterprises undergoing digital transformation, are seeking future-proof cooling solutions to optimize energy consumption and ensure environmental sustainability.

Pre-engineered cooling modules and plug-in systems offer efficient cooling capabilities, while row/rack-based cooling and precision cooling techniques address heat dissipation challenges. The market also sees a rise in AI-driven applications necessitating low-power-consuming cooling techniques and advanced cooling technologies.

Data center operators and managers are increasingly focusing on energy-efficient data centers to maximize space utilization and minimize cooling expenses. Industry 4.0 demands reliable infrastructure components like UPS systems, PDUs, and network switches to ensure uninterrupted power distribution and networking.

In this competitive landscape, collaboration with colocation service providers and outsourcing cooling solutions can drive energy and carbon savings, benefiting sectors like manufacturing, healthcare, and energy and utilities. Overall, the market is evolving to meet the growing demand for efficient data generation, storage, and processing while prioritizing energy efficiency and cost-effectiveness.

Market Overview

In the data centers industry, efficient cooling solutions are paramount. Pre-engineered cooling modules ensure optimal performance even under peak load conditions. These modules seamlessly integrate with centralized storage and networking systems, guaranteeing smooth data traffic flow. Advanced cooling techniques, like computer room air conditioners, are tailored to meet the demands of modern infrastructural design.

With the rise of OTT platforms and streaming services, robust web hosting capabilities are indispensable. Web 2.0 technologies demand high computing capacity, necessitating reliable authentication protocols. In this landscape, data center cooling equipment plays a pivotal role in maintaining optimal operational efficiency. As the demand for seamless connectivity grows, the market for data center cooling solutions continues to thrive, meeting the ever-evolving needs of businesses worldwide.

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Key Topics Covered:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation

• Application 
• Air Conditioning
• Economizers
• Cooling Towers
• Chillers
• Others
• Geography 
• APAC
• North America
• Europe
• Middle East And Africa
• South America

 7 Customer Landscape
 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio