Data Center Cooling Market Expected to Reach $80.1 Billion by 2033

According to a new report published by Allied Market Research, titled, “Data Center Cooling Market," The data center cooling market was valued at $18.7 billion in 2023, and is estimated to reach $80.1 billion by 2033, growing at a CAGR of 15.7% from 2023 to 2033.

The integration of cooling into data center management continues to make way for a completely automated, robot-driven data center environment. As contact with virtually unlimited computing resources continues to grow, enterprises and consumers are able to do things that could not be dreamt of until a few years ago. In addition, social, mobility, and analytics trends are powered by cooling and cloud technologies. Moreover, enterprises wanted to introduce Robotic Process Automation “RPA” to their own data centers to derive the benefit of agility, elasticity, and self-service. Cooling and automation augment many human participations. According to the research, it is clear that cooling will never replace the need for unique human communication within the data center cooling industry.

The advancement of smart data centers by cooling process automation and increase in adoption of data center services propel the growth of the global data center cooling market. In addition, the increasing adoption of cooling across various end users fuels the growth of the market. However, a lack of technical proficiency and lack of awareness, and an increase in security privacy concerns of data center cooling are expected to impede the market growth. Furthermore, an increase in the adoption of AI, ML, and IoT technologies is expected to provide lucrative opportunities for market growth and increase the data center cooling market size. 

Depending on the component, the solution segment holds the largest data center cooling market share, owing to increase in adoption of data center cooling as it offers, energy-efficient, environment-friendly, and cost-effective cooling solutions that drive the segment growth. In addition, stringent environmental safety rules imposed by various governments further augment the growth of this segment. However, the service segment is expected to grow at the highest rate during the forecast period, as data centers are required to be maintained by trained professionals to keep efficiency intact. Moreover, the rapid growth in data centers and service providers for services such as installation & deployment, support & maintenance, and consulting for data center cooling further drives the growth of the segment. 

Region-wise, the data center robotic market size was dominated by North America in 2023 and is expected to retain its position during the forecast period, owing to early technology development and the existence of many software service providers. However, Asia-Pacific is expected to witness significant growth during the data center cooling market forecast period, owing to growing number of data centers across China and India. 

The growing adoption of advanced technological solutions such as AI, ML, big data, and IoT has increased the rack power density that is leading to the adoption of advanced cooling solutions. Vendors are innovating in design and technology used by the cooling systems they offer. The market for direct liquid cooling and immersion cooling solutions is expected to become more competitive with the growing adoption of HPC infrastructure for AI and ML workloads among data centers. Initiatives such as Open Commute Projects are expected to bring several new cooling techniques and technologies to the market, thereby creating more competition among vendors. 

Demand for data center cooling is on the rise across various industries as it enables maintaining environmental conditions suitable for information technology equipment (ITE) operations. Awareness around edge computing has increased across various industries and the COVID-19 pandemic is acting as a major driver to get industrial companies more interested in benefits related to edge computing in supporting remote operations, real-time control, and enhanced data-crunching capabilities. 

Large enterprises are affirming their readiness to invest in edge strategies, establishing a market beyond telecom companies and content players. Further, some companies are inclined toward revamping their existing data center cooling systems to make it less water dependent. 

Growing adaptation of AI and big data creates effects across the enterprise servers. The information coming from the data center GPUs was not effectively processed by the traditional microprocessors. Data center GPU uses include deep learning technology information, enterprise- grade performance, and are designed for large scale projects. The usage of GPU has also led to higher consumption of data center cooling across the world. The demand for data centers is increasing rapidly, investors are converting old office buildings, house buildings, and old warehouses into data centers as a quicker, cost-efficient alternative to new buildings. In Hong Kong, the logistics real estate manager ESR gained a cold storage facility and is reconstructing the brownfield site into a 40-megawatt data center after receiving the permission from town planning authority. 

KEY FINDINGS OF THE STUDY 

• By component, the solution segment accounted for the largest Data center cooling market share in 2023. 

• By cooling type, the room-based cooling segment accounted for the largest data center cooling market share in 2023. 

• By industry vertical, the manufacturing segment accounted for the largest data center cooling market size in 2023. 

• Region wise, North America generated the highest revenue in 2023. 

The key players profiled in the data center cooling market analysis are Schneider Electric Se; Black Box Corporation; Nortek Air Solutions, LLC; Airedale International Air Conditioning Ltd; Hitachi, Ltd.; Rittal GmbH & Co. Kg; Fujitsu Ltd.; Stulz GmbH; Vertiv; and Asetek. These players have adopted various strategies to increase their market penetration and strengthen their position in the data center cooling industry.