Market Trends of China Data Center Cooling Industry
Liquid-based cooling is the fastest growing segment
- Technological advances have made liquid cooling easier to maintain, more scalable, and more affordable, reducing data center liquid consumption by more than 15% in tropical climates and by 80% in greener areas. The energy used for liquid cooling can be recycled to heat buildings and water, and advanced artificial refrigerants can effectively reduce the carbon footprint of air conditioners.
- Liquid cooling takes advantage of the superior heat transfer properties of water or other liquids to support efficient and cost-effective cooling of high-density racks, up to 3000 times more effective than using air. Long proven in mainframe and gaming applications, liquid cooling is increasingly being used to protect rack servers in data centers across the region.
- Direct liquid cooling solutions achieve partial power usage effectiveness (PUE) of 1.02 to 1.03, outperforming the most efficient air cooling systems by low single-digit percentages. However, PUE is not responsible for much of the DLC's energy gain. Traditional servers have fans that use power from the rack, so control is included in the IT power section of his PUE. These are considered part of the data center payload.
- Water cooling can be essential in minimizing emissions and reducing climate disturbance. Data centers using water as a cooling substance use about 10% less energy than most air-cooled data centers, emitting about 10% less CO2. In 2021, water cooling could reduce energy-related CO2 emissions in the data center portfolio by about 300,000 tonnes.
- People in China spend an average of 2.5 hours on e-commerce, and 80% of e-commerce sales come mainly from smartphones. The online market penetration of e-commerce marketplaces was about 71.9% in 2022 and is expected to reach 83.9% by 2025.
- E-commerce is growing proportionately both domestically and internationally due to the attractive offers and goods these marketplaces offer at affordable prices. Another factor that has contributed to the growth of the e-commerce market is digital payment services.
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IT & Telecommunication is the largest segment
- Demand for data centers in the country is growing at an ever-faster rate, and it is critical to keep these facilities up and running. In the telecommunications sector, demand for data centers to deliver content, mobile, and cloud services is increasing. In this phase, data center interconnects and WAN connections are major network requirements, creating large storage resources that are energy intensive, so data center cooling is critical.
- Since the advent of the Internet, ICT has become one of the most important drivers of global development and value creation. In recent years, the ICT industry has undergone many changes due to technological advances. High growth rates are projected in this rapidly growing market. ICT companies, and virtually all companies with access to telecommunications networks, are likely to feel immediate and far-reaching impacts from these major trends currently prevalent in the telecommunications sector.
- According to the China Data Center Energy Consumption Report, there are currently more than 400,000 small and medium-sized data centers in China, with a total annual power consumption of 100 billion kWh. Coupled with the growing trend of data localization, the country is likely to further push the development of hyperscale data centers.
- Governments are taking important steps to develop more energy-efficient data centers. For example, the Green Data Center Pilot Project (GPPGDC) was established in the past to promote sustainability in China's data center industry, which included a pilot involving 100 major green data centers.
