APAC Data Center Cooling Market Size

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.