Asia Pacific Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Asia Pacific Data Center Cooling Market is Segmented by Solutions (Air Conditioners/Handlers, Chillers, Economizer Systems, Liquid Cooling Systems, and Row/Rack/Door/Over-Head Cooling Systems), Service (Installation and Deployment, Consulting, Support, and Maintenance Services), End-User Verticals (Information Technology, BFSI, Telecommunication, Healthcare, Retail, Government, and Other End-Users), and Geography (China, Japan, Australia, Japan, and the Rest of Asia-Pacific). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

APAC Data Center Cooling Market Size

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APAC Data Center Cooling Market Summary
Study Period 2019-2029
Base Year For Estimation 2023
Market Size (2024) USD 2.65 Billion
Market Size (2029) USD 3.79 Billion
CAGR (2024 - 2029) 7.40 %
Market Concentration Low

Major Players

APAC Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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APAC Data Center Cooling Market Analysis

The APAC Data Center Cooling Market size is estimated at USD 2.65 billion in 2024, and is expected to reach USD 3.79 billion by 2029, growing at a CAGR of 7.40% during the forecast period (2024-2029).

Due to the surge in Internet usage and the number of data centers due to enormous computational requirements by artificial intelligence (AI) and media applications in the Asia-Pacific (APAC) region, the data center cooling market has a massive growth.

  • According to International Energy Agency (IEA), the need for digital services is continuously increasing. Since 2010, the global population of internet users has nearly doubled, while global web traffic has increased 20-fold. On the other hand, significant advances in energy efficiency have helped to restrain the increase in energy demand from data centers and data transmission systems, each contributing to 1-1.5% of worldwide power use. Substantial government and business efforts on energy efficiency, research and development, and decarbonizing power supply and supply chains are required to significantly cut energy demand and emissions over the next decade to meet the Net Zero by 2050 Scenario.
  • Development in IT Infrastructure in emerging countries of APAC is propelling the market. The data center energy demand increased from 66 TWh in 2019 to 72 TWh in 2022 in Asia, according to IEA data released in October 2022.
  • Companies in the APAC region are trying to tackle this issue by setting up Green data centers that use Free air cooling systems instead of traditional Air conditioners. The increasing trends toward deploying green data centers for managing, storing, and distributing information helped many software businesses decrease energy consumption and total energy cost.
  • However, adaptability demands and power outages in the Asia-Pacific region confront the market to growth. A typical data center cooling system must be pre-engineered, standardized, and modular. It is expected to be flexible and scalable to match the data center's requirements in the region. This is challenging today, with firms looking to lower costs and not spend much on high-end customized cooling systems.
  • The COVID-19 regulation had a significant influence on the data center cooling sector. A staff shortage and limited investment funds have restricted data center cooling technology manufacturing and sales. Furthermore, the key market operators and the government implemented additional safety measures to develop and improve the procedures. Since it targeted the correct audience, the data center cooling sector's sales rate improved as technology evolved.

APAC Data Center Cooling Market Trends

Information Technology Industry to Witness Highest Growth

  • The Information Technology (IT) vertical has driven transformative advancements in various industries. One area that has witnessed remarkable growth due to IT innovation is the market studied. 
  • Moreover, the Asia Pacific region is experiencing significant growth in this segment. As a thriving demand hub for technology and digital transformation, the IT sector has risen to the challenge, propelling the development of the market studied to new heights.
  • Furthermore, cloud storage use has expanded over the years as SaaS provider expansion has enabled cloud storage providers to expand their capacity, which is likely to raise demand for data center cooling systems. Cloud storage companies like Microsoft, AWS, and Google are expanding their storage capacity to enable more efficient cloud workflow. These firms are investing in hyperscale transactions. 
  • As data-driven technologies, cloud computing, artificial intelligence, and (IoT) continue to evolve, the demand for data centers has skyrocketed. Companies are expanding their digital footprints, requiring larger data centers or multiple smaller facilities spread across various regions. This growth has introduced new challenges in managing the cooling needs of these sprawling infrastructures.
APAC Data Center Cooling Market: Internet of Things (IoT) Connections from 2022 to 2030, by Region

China to Witness Significant Market Share

  • Data center cooling is a market that is expanding quickly in Asia-Pacific due to the region’s growing data center infrastructure, rising adoption of digital services, and the emergence of cloud computing. The data center need is increasing significantly and placing a greater emphasis on effectiveness and maximum uptime. 
  • China is putting much effort toward overtaking its competitors globally in the construction of data centers. The use of 5G, wearable technology, the Internet of Things (IoT), and artificial intelligence generates a booming demand for processing capacity as larger organizations attempt to scale up their data centers to assure the stability and reliability of data services.
  • Accelerator processors are entering the enterprise data center as artificial intelligence and comparable workloads become commonplace in numerous Chinese industries. All latency-sensitive services demand zero-latency technologies that use accelerating systems to handle information rapidly. The cooling requirements for these hardware accelerators are considerable and range from 200 W to more. The cooling requirements of a single machine can be almost 1 kW when paired with a powerful server. In the region's data centers, this has increased the use of immersion cooling technologies.
  • Microsoft Azure and Amazon Web Services are constructing massive global cloud data center networks. Alibaba Group, the cloud computing division of China's largest e-commerce company, uses a data center cooling solution that submerges server motherboards in liquid coolant to compete with these advancements. This technique makes use of liquid's more effective ability to transport heat than air. The energy efficiency enhancements of the immersion cooling solution lead to a 20% decrease in data center operating expenses.
APAC Data Center Cooling Market: Adoption of 5G connections in 2030 by Region, In Percentage

APAC Data Center Cooling Industry Overview

The Asia Pacific data center cooling market is fragmented as the advantages offered by the technology and aid from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly. Market penetration is growing with a strong presence of major players in established markets. With the increasing focus on innovation, the demand for new technologies is growing, which, in turn, is driving investments for further developments. Key players are Vertiv Co., Schneider Electric SE, STULZ GMBH, etc.

In May 2023 - Asetek has announced the showcasing Asetek-based CPU Coolers at Computex Taipei where Asetek’s liquid cooling technology includes a plethora of innovations which are deliver up to 2°C/100W improvement over its industry-leading 7th generation of liquid cooling technology and Designed from the ground up and optimized for Intel 13th and 12th Gen processors, as well as AMD Ryzen 7000 and 5000 Series processors.

In April 2022, ST Telemedia Global Data Centres (STT GDC), among the most rapidly expanding international data center operators headquartered in Singapore, announced that it teamed up with Schneider Electric and Iceotope, leading companies in the digital transformation of cooling and energy management, respectively, to perform a proof-of-concept (POC) immersion liquid cooling demonstration in Singapore. The POC aims to investigate this developing technology, construct future-proof next-generation data centers, and minimize electricity and water use.

In May 2022, Intel announced two additional investments as part of its ongoing efforts to develop more environmentally friendly data center technological solutions. First, Intel announced plans to invest over USD 700 million on a 200,000-square-foot, cutting-edge research & development mega lab focusing on novel data centers technologies such as cooling, heating, and water management. In addition, Intel unveiled the first open intellectual property (open IP) immersion water cooling system and reference design in the technology sector. With the initial development proof of concept launched in Taiwan, Intel wants to simplify and speed up the global adoption of immersion liquid cooling technologies.

APAC Data Center Cooling Market Leaders

  1. Vertiv Co

  2. Stulz GmbH

  3. Schneider Electric SE

  4. Rittal GmbH & Co. KG

  5. Mitsubishi Electric Hydronics & IT Cooling Systems SpA

*Disclaimer: Major Players sorted in no particular order

APAC Data Center Cooling Market Concentration
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APAC Data Center Cooling Market News

  • January 2023: NTT Ltd., a leading IT infrastructure and services business and one of the world's top three data center service providers, is dedicated to making the data center space more environmentally friendly, and its most recent initiative is the groundbreaking deployment of direct contact liquid cooling (DCLC) and liquid immersion cooling (LIC) technologies. The business completed its first deployment, the largest in the Asia Pacific, at its Navi Mumbai Data Center. The one-of-a-kind building, part of its Mahape complex, has a power of 4.8 MW and was developed across an area of 13,740 square feet. The site is designed to house up to four data centers, with a total capacity of 150 MW of IT load. India is the first country to install these throughout NTT's worldwide data center platform.
  • August 2022: OneAsia, a major supplier of cloud-based technologies and data center services in Asia, announced the debut of an immersion cooling solution in September. The novel system, the first of its type in Hong Kong, drastically cuts data center energy usage while providing more dependable performance. It represents a game-changing transition for a high-energy-consuming industry toward a greener future by adopting new, sustainable technology and practices.
  • July 2022: ST Engineering announced the release of its innovative Airbitat DC cooling system, which marks the company's debut in the data center cooling sector. The Airbitat DC cooling system, developed by its Urban Environment Solutions (UES) company, provides strong pre-cooling for tropical data centers, yielding yearly net energy savings of more than 20% over traditional chiller systems alone. This equates to a yearly energy savings of around $104 per kW[1] of heat demand.

APAC Data Center Cooling Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of Covid-19 on the Industry

    5. 4.5 Technology Snapshot

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Volume of Digital Data

      2. 5.1.2 Emergence of Green Data Centers

    2. 5.2 Market Restraints

      1. 5.2.1 Adaptability Requirements and Power Outages

    3. 5.3 Current Opportunities in the Market

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Solution

      1. 6.1.1 Air Conditioners/Handlers

      2. 6.1.2 Chillers

      3. 6.1.3 Economizer Systems

      4. 6.1.4 Liquid Cooling Systems

      5. 6.1.5 Row/Rack/Door/Over-head Cooling Systems

    2. 6.2 By Service

      1. 6.2.1 Installation and Deployment

      2. 6.2.2 Consulting, Support, and Maintenance Services

    3. 6.3 By End-user Vertical

      1. 6.3.1 Information Technology

      2. 6.3.2 BFSI

      3. 6.3.3 Telecommunication

      4. 6.3.4 Healthcare

      5. 6.3.5 Retail

      6. 6.3.6 Government

      7. 6.3.7 Other End-user Verticals

    4. 6.4 By Country

      1. 6.4.1 China

      2. 6.4.2 Japan

      3. 6.4.3 Australia

      4. 6.4.4 Japan

      5. 6.4.5 Rest of Asia-Pacific

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Vertiv Co.

      2. 7.1.2 Stulz GmbH

      3. 7.1.3 Schneider Electric SE

      4. 7.1.4 Rittal GmbH & Co. KG

      5. 7.1.5 Mitsubishi Electric Hydronics & IT Cooling Systems SpA

      6. 7.1.6 Asetek AS

      7. 7.1.7 Chilldyne Inc.

      8. 7.1.8 Johnson Controls Inc.

      9. 7.1.9 LiquidCool Solutions

      10. 7.1.10 CoolIT Systems Inc.

    2. *List Not Exhaustive
  8. 8. VENDOR SHARE ANALYSIS

  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OF THE MARKET

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APAC Data Center Cooling Industry Segmentation

Datacenter cooling refers to the collective equipment, tools, techniques, and processes that ensure an ideal operating temperature within a data center facility. With increasing capacity and higher density, there is an increasing need for energy-efficient cooling of the IT equipment. Furthermore, benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly in various applications.

The Asia Pacific data center cooling market is segmented by solutions (air conditioners/handlers, chillers, economizer systems, liquid cooling systems, and row/rack/door/over-head cooling systems), service (installation and deployment, consulting, support, and maintenance services), end-user verticals (information technology, BFSI, telecommunication, healthcare, retail, government), and geography (China, Japan, Australia, Japan, and the Rest of Asia-Pacific).The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Solution
Air Conditioners/Handlers
Chillers
Economizer Systems
Liquid Cooling Systems
Row/Rack/Door/Over-head Cooling Systems
By Service
Installation and Deployment
Consulting, Support, and Maintenance Services
By End-user Vertical
Information Technology
BFSI
Telecommunication
Healthcare
Retail
Government
Other End-user Verticals
By Country
China
Japan
Australia
Japan
Rest of Asia-Pacific
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APAC Data Center Cooling Market Research FAQs

The APAC Data Center Cooling Market size is expected to reach USD 2.65 billion in 2024 and grow at a CAGR of 7.40% to reach USD 3.79 billion by 2029.

In 2024, the APAC Data Center Cooling Market size is expected to reach USD 2.65 billion.

Vertiv Co, Stulz GmbH, Schneider Electric SE, Rittal GmbH & Co. KG and Mitsubishi Electric Hydronics & IT Cooling Systems SpA are the major companies operating in the APAC Data Center Cooling Market.

In 2023, the APAC Data Center Cooling Market size was estimated at USD 2.45 billion. The report covers the APAC Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the APAC Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

APAC Data Center Cooling Industry Report

Statistics for the 2024 APAC Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Data Center Cooling analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Asia Pacific Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)