China Data Center Cooling Market - Growth, Trends, and Forecasts (2020 - 2025)
The China Data Center Cooling Market is segmented by Solution (Air Conditioners/Handlers, Row/Rack/Door/Overhead Cooling Systems, Chillers, Liquid Cooling Systems, Economizer Systems), Service (Installation and Deployment, Consulting, Support, and Maintenance Services), and End-user Vertical (Information Technology, BFSI, Telecommunication, Healthcare, Government).
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The Chinese data center cooling market is projected to register a CAGR of 16.4% during the period of 2020-2025. The data center industry is witnessing rapid growth and is focusing more on efficiency and maximum uptime. China is highly focusing on taking the lead over global peers in data center construction, with larger enterprises looking to scale up their data centers to ensure stability and reliability of data services, as the application of 5G, wearable devices, the internet of things, and artificial intelligence spurs a burgeoning demand for computing power.
According to the measure of data center space per user, the internet data centers in China would grow to at least twenty-two times that of the United States, or at least ten times the current space of Japan. Along with the continuous growth of online streaming, gaming, and e-commerce, the internet industry contributes the most significant demand for the data center market in China.
Air and liquid cooling are two of the most commonly used heat management methods in data centers. While air cooling is less pricey and messy, as compared to liquid cooling, liquid cooling is considered more beneficial over air cooling, as water is more efficient than air as a medium of heat removal and can reduce cooling power needs by 70%.
Traditionally, the vast majority of data centers used air as a medium to cool IT equipment, while liquid cooling has been used primarily in high-performance computing. In a study conducted by the company 3M, a prominent synthetic coolant provider, it was identified that 38% of the electricity need of data centers equipped with traditional air-based cooling technologies is utilized to cool their electronic components.
Furthermore, according to a document seen by DCD, Shanghai's Municipal Economic Information Commission solicits proposals to build new data centers. The amount is limited to 30,000 racks during 2020, consuming energy equivalent to 250,000 metric tons of standard coal. At roughly 2,460 kWh per metric ton of coal, that amounts to about 70MW of data center capacity.
The upcoming 5G wave is further motivating telecom vendors to invest in the data center market for more network functionality and a much higher ability to manage networks around the edges.
With the COVID-19 pandemic the value of online tools and services have increased from before but at the same time the restrictions imposed has created supply chain shortage.
Scope of the report
The cooling technologies considered under the scope of the study are CRAC/CRAH, High-density cooling (in-row/in-rack/rear-door/overhead cooling), Airside components and chillers.
Row/Rack/Door/Overhead Cooling Systems
Liquid Cooling Systems
Installation and Deployment
Consulting, Support, and Maintenance Services
By End-user Vertical
Other End-user Verticals
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Key Market Trends
Telecommunication Sector is Expected to Drive the Market Growth
The demand for data centers in the country is growing at an accelerated pace, and to keep these facilities constantly operational is essential. The telecom sector is driving the demand for data centers to deliver content, mobile, and cloud services. In this phase, interconnecting data centers and WAN connectivity are paramount network requirements that create high storage resources with high-energy consumption, for which the requirement of cooling data center is essential.
Thermal loads inside telecom facilities and electronic enclosures must be managed efficiently. Liquid cooling is a powerful alternative to ambient air cooling, as water can carry about 3,500 times more heat than air. Economizer-based data center liquid cooling with advanced metal interfaces reduces cooling energy to 5% of the total data center energy, which saves energy and reduces carbon dioxide (CO2) emissions.
Since the advent of the internet, telecommunication has been one of the major driving forces behind the global development and value creation. Recently, there were many changes occurring in the telecom industry that are attributed to the advancement in technology. High rates of growth are being forecasted for this rapidly growing market. Telecom companies and virtually all businesses that access telecom networks are expected to feel both the immediate as well as far-reaching impacts, because of these major trends that are currently being circulated in the telecom sector.
In order to optimize their networks and the digital services that are running on them, the telecom providers will need more compute and storage capacity in the future to be deployed across the carrier networks. Additionally, the rapidly increasing 4G penetration and the upcoming 5G wave are further motivating telecom vendors to invest in the data center market for more network functionality and a much higher ability to manage networks around the edges.
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Emergence of Sustainable Data Centers to Drive the Market Growth
According to the report on Energy Consumption of Data Centers in China, the current numbers of small and medium-sized data centers in China are over 0.4 million and the annual total power demand accounted for 100 billion kWh. Coupling with rising trend of data localization, the country may further promote the development of hyperscale data centers.
All these factors are forcing the data center service providers to either develop energy-efficient data centers, adopt the advanced cooling solution, or utilize renewable energy solutions. All these scenarios may directly boost the demand in the market studied. For instance, Tencent plans to build a data center in the hills of Guizhou that may tap the external cold air for cooling and utilize the ample supply of hydropower in the region.
In the recent past, USGBC signed a strategic agreement with the China Software Testing Center, to promote the sustainable development of China's data centers. It also organized the LEED DC Working Group. After that, Delta Wujiang Data Center became the world’s first data center to certify using LEED v4 ID+C: Commercial Interiors.
The government is also taking significant steps toward the development of more energy-efficient data centers. For instance, in past, the Pilot Projects of Green Data Centers (GPPGDC) were released to encourage sustainability in China's data center industry, which included a pilot of 100 leading green data centers.
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The China data center cooling market is moderately fragmented. The market players are considering startegic partnerships and collaborations to expand their market share.Some of the recent developments in the market are:
March 2020 - Telecom giants Telefonica, KT, China Unicom, and Telstra agreed to collaborate on the Multi-Operator Multiaccess Edge Computing (MEC) Experience. This partnership is part of the GSMA Operator Platform initiative, which is initially focused on edge computing and would later include services, like IPComms, and network slicing designed to assist operators in finding solutions to monetize their network capabilities.
June 2019 - Rittal announced a partnership with Atos and Siemens, to develop intelligent-edge datacenter solutions that find applications in next- generation smart industries, smart cities, smart retail, energy and utilities, and the public sector. The companies can process their IoT data in real-time, using solutions, such as Mind sphere, Bullsequana Edge from Siemens, and Atos, to optimize the value chain, whereas Rittal will be responsible for the heat dissipation of such datacenters.