|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Data Center Liquid Cooling Market is expected to register a CAGR of 24.84% during the forecast period (2022-2027). Technological advancements have made liquid cooling simple to maintain, easily scalable, affordable and have resulted in reduced liquid usage by more than 15% for data centers in built-in hot and humid climates and 80% in cooler areas. The energy dedicated to liquid cooling can be recycled to heat buildings or water, effectively shrinking the carbon footprint of air conditioning due to the application of advanced engineering coolants.
- Various other benefits of liquid cooling include higher capacity compared to air cooling, providing the same cooling with much larger volume, reduced overall capacity requirement due to the application of high-power density components directly, and efficient heat rejection. The dielectric liquid used in the direct liquid cooling method effectively absorbs heat. Hence, more hardware can be inserted into a smaller amount of space, lowering the need for additional space to accommodate the hardware.
- In contrast, m adaptability requirements are a significant challenge for data center operators looking to adopt cooling systems. Data centers are complex, with a vast server array, and they carry the uncertainty of quantity, timing, and location. Cooling at this high density is very difficult, and it involves many unnecessary costs. A typical data center cooling system needs to be standardized, pre-engineered, and modular. It is required to be scalable and flexible to meet the needs of the data center. This is tedious, with companies looking to cut costs and not willing to spend much on high-end customized cooling systems. Companies are unsure of whether their present cooling systems can sustain the future server load. This makes infrastructure changes frequent and pushes companies that are unwilling to invest much in newer cooling systems.
- Datacenter operators are wary of potential downtime losses while shifting to new cooling systems. Hence, they overlook operational expenditure and continue using outdated cooling systems. This trend slows the adoption of new technologies that are perceived to be untested.
- Further, the outbreak of the COVID-19 pandemic posed significant stress on multiple economies across various sectors. This has majorly shifted the focus towards a digital economy. Owing to the players in the market are making significant investments. For instance, China's top cloud computing provider, Alibaba Cloud, has been investing billions in building next-generation data centers to support digital transformation needs in a post-pandemic world. In April 2020, Alibaba Cloud announced that it would invest CNY 200 billion in core technologies and the construction of future-oriented data centers over the next three years.
- The current market is highly price-sensitive and low on differentiation. Datacenter operators also vary in potential downtime losses while shifting to new cooling systems. Hence, they are willing to overlook operational expenditure and continue to use outdated cooling systems. This trend slows the adoption of new technologies that are perceived to be untested.
Scope of the Report
The Data Center Liquid Cooling Market is segmented by Type of Liquid Cooling Solution (Indirect Cooling, Direct Cooling) and Geography.
Liquid cooling is being used in data centers for more than just mainframes and supercomputers. Water and other liquids are significantly more effective at transporting heat than air, can also eliminate some of the issues associated with air cooling systems, particularly as computer density rise, leading to an increase in the number of data centers. The heat capacity of liquid cooling technology is significantly greater than air; water is 4,000 times more efficient than air. When compared to air-cooled locations, this technology delivers greater energy efficiency across the data center, with rack density estimations north of 50kW. Datacenter liquid cooling is increasingly being used to describe direct cooling methods that expose server components (such as CPUs) to liquid for cooling them more efficiently.
Key Market Trends
Indirect Cooling is Anticipated to Account for a Significant Market Share
- Indirect or Direct-to-chip cooling is the most common liquid cooling method, including liquid-to-chip, Indirect, or Direct-to-chip cooling systems. Indirect or Liquid-to-chip cooling, also called direct-to-chip or cold plate cooling, uses coolant on a cold plate inside the server and a chilled water loop to carry the heat outside. In Today's era, the data centers are entering into unprecedented compute and core count-hungry applications. Nowadays, data center operators and owners need to rethink increased densities and the challenge posed as conventional air cooling reaches its limits.
- In data centers, there is a high market demand for high-performance, high frequency, and intense workload environments, multi-core computing, such as artificial intelligence (AI) and machine learning (ML), and challenging edge applications increase, end-to-end data center solutions. The benefits of the latest innovations in indirect or direct-on-chip liquid cooling and system integrator services, as in this data center owners, can address a wide range of needs across the enterprise.
- Indirect or Direct-to-chip cooling uses liquid or phase-change heat-transfer mechanisms, or close to, the exposed rear surface of the silicon of the chip. It provides maximum power and heat dissipation at a minimum operating temperature. It also allows to work under operating conditions, and a processor can operate significantly faster than a processor cooled by other conventional means.
- Products involving direct-to-chip cooling are being developed and patented to address the needs for agile and powerful cooling technologies processor chips. One of them uses direct chip cooling uses liquids, which are applied to the back surface of the chip or sprayed onto a plate adjacent to the chip. In general, using liquid is a very effective cooling method instead of using cooled air. However, these methods are generally more expensive than air cooling and must be carefully implemented not to damage the chip by contact with the liquid.
- Direct to chip cooling is suitable for retrofits that have existing air-cooled systems. Some of the minor changes and the addition of tubing and cold plates can convert a rackmount system to a liquid for chip cooling. Water or a dielectric fluid can be used, and facilities can retrofit one rack at a time. There would be a learning curve and a possible increase in person-hours as staff figures out how to maintain the new system.
- For instance, in April 2020, Rittal, a provider of industrial solutions and IT infrastructure, and ZutaCore, a two-phase waterless liquid cooling company, announced the First HPC Direct Chip Cooling Solution with ZutaCore. The challenges posed by server-level hot spots and edge computing requirements while mitigating the risk of IT failure can not be accepted by its customers. To overcome this challenge, customers need to use trusted IT racks from Rittal combined with the innovative direct-on-chip evaporative cooling solution from ZutaCore.
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North America is Anticipated to Hold a Dominant Market Share
- North America is an early adopter of newer technologies. The connected devices penetration grew significantly in the region. According to the Consumer Technology Association, the United States shipment of connected consumer devices rose from 621 million in 2016 to 715 million in 2018 and is expected to reach 791 million by 2021. The data center investors are increasingly investing in liquid immersion and direct-to-chip cooling solutions. The importance of edge data centers has been aided by the emergence of 5G networks worldwide, and the United States is among the earliest adopters of the technology. Many operators in the United States, such as EdgePresence, EdgeMicro, and American Towers, have started investing in these centers.
- Moreover, the mobile data traffic in the United States increased considerably over the years, from 1.26 exabytes per month of data traffic in 2017 to 7.75 exabytes per month of data traffic by 2022, as reported by Cisco Systems. According to Ericsson, this data traffic is expected to triple further by 2030. Thus, the distributed cloud that can secure the low latency and high bandwidth required to connect such scale with ease is coming into action. According to Energy Technology Area, the energy use in the US data centers is expected to continue growing slightly shortly, increasing by more than 4% from 2014-2021. Based on current trend estimates, the US data centers will consume approximately 73 billion kWh in 2020.
- The United States is witnessing massive growth in internet usage by people and businesses. The country is the largest market in terms of data center operations, and it is continuing to grow due to the higher consumption of data by end-users. The growing popularity of the Internet of Things (IoT) is a significant driver for the US hyper-scale data center market, leading to additional facilities that can support exabytes of data generated by both business users and consumers. For instance, in 2020, Switch partnered with Dell and FedEx to deploy edge data center facilities in the United States. DataBank, a colocation service provider, is investing around USD 30 million in EdgePresence, an edge data center provider in the United States, to collocate their customer workloads to edge centers to reduce latency in their services.
- In North America, direct-to-chip liquid cooling is becoming popular. The facilities that use water for cooling purposes include on-site water treatment plants that are designed with dual piping systems. Many vendors in the Southeastern and Western United States are adopting water-cooled chillers, with an economizer mode to facilitate partial cooling of the facility by using external air.
- The outbreak of the COVID-19 pandemic, the construction of several facilities in the United States was halted, owing to supply chain disruptions. The number of data center construction projects identified was over 135 in the country. Around 95 projects already became operational in 2019, and the pandemic affected the remaining US projects during 2020.
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The data center liquid cooling market is highly competitive and consists of several major players like Alfa Laval AB, Asetek AS, Fujitsu Limited, Liquid Cool Solutions, Vertiv Co, etc. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market shares and profitability.
- November 2021 - Liquid Stack joined the Supercomputing '21 Conference in St. Louis. The company showcased its first optimized two-phase liquid immersion cooled OCP open accelerator infrastructure (OAI) servers. Liquid Stack's two-phase immersion cooling technology, combined with Wiwynn's advanced hardware, enables unprecedented levels of computing power, efficiency, and space savings. The integrated demonstration features Wiwynn's optimized high-performance OAI servers with Habana Gaudi processors in a 2-phase immersion-cooled Liquid Stack data tank.
- November 2021 - Wiwynn Corporation announced that it would showcase its Open Compute Project (OCP) based cloud and edge servers, as well as the Habana OCP Accelerator Module (OAM), based Open Accelerator Infrastructure (OAI) platform, at the OCP Global Summit 2021. It will also feature the world's first two-phase immersion cooled edge server and OAI server, which will help data centers cope with rising power consumption and the desire for low PUE.
- January 2021 - Icetope Technologies Limited announced the launch of a highly scalable, GPU-rich, and liquid-cooled solution for the deployment of HPC and AI workloads in colocation integrating with Lenovo ThinkSystem SR670 servers. The Ku:l Data Centre solution can resist the increment in heat loads from processor roadmaps.
- December 2021 - Alfa Laval has signed a global collaboration agreement with U.S. software company Microsoft to develop digital tools that facilitate service and maintenance for its portfolio of plate heat exchangers. The new tools will use artificial intelligence (AI) to enable end-users to determine whether maintenance is needed. Alfa Laval specializes in heat transfer solutions, including brazed heat exchangers suitable for propane (R290) and CO2 (R744) applications.
- September 2021 - GIGABYTE Technology, which is an industry pioneer in high-performance servers and workstations, announced a collaborative product launch with CoolIT Systems Inc., which is a global player in modular, scalable data center liquid cooling technology. CoolIT Systems could outfit two high-density servers, the H262-ZL2 and H262-ZL0, with direct liquid cooling for CPUs and other components.
- March 2021 - Vertiv and GRC teamed up to offer a high-efficiency liquid cooling solution for data centers and edge applications. The Liebert VIC, which is available in Australia, Asia, and New Zealand, improve cooling efficiency in dense computing settings, which are increasingly supporting data-intensive applications like edge computing, the Internet of Things (IoT), and automation.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Evolution of Data Center Cooling
4.1.1 Air Conditioners/Handlers
4.1.2 Chillers and Economizer Systems
4.1.3 Liquid Cooling Systems
4.1.4 Row/Rack/Door/Over-head Cooling Systems
4.2 Overview of Data Center Cooling Market
4.3 Energy Consumption, Computing Density Metrics, and Key Considerations for Liquid Cooling
4.4 Industry Stakeholder Analysis
4.5 Market Drivers
4.5.1 Development of IT Infrastructure in the Region
4.5.2 Emergence of Green Data Centers
4.6 Market Challenges
4.6.1 Costs, Adaptability Requirements, and Power Outages
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitute Products
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 on the Data Center Liquid Cooling Market Ecosystem
5. OUTLOOK OF REAR DOOR HEAT EXCHANGERS (RDHX) IN DATA CENTERS
5.1 Technical Comparison of RDHx And Liquid Cooling (Direct And Indirect) In Data Centers (in Terms of Effectiveness, Considerations, Costs, etc.)
5.2 Recent Developments by Data Center Cooling Technology Vendors in the Context of RDHx and Liquid Cooling Market
5.3 Global Market Share of RDHx (2020)
5.4 List of Key RDHx Vendors (Business Overview, Portfolio and Recent Developments)
6. DIRECT COOLING OR IMMERSION COOLING MARKET
6.1 Direct Cooling Market Overview and Estimates
6.2 Immersion Cooling - Key Applications
6.2.1 High-performance Computing
6.2.2 Edge Computing
6.2.3 Cryptocurrency Mining
6.3 Immersion Cooling Fluids
7. INDIRECT OR DIRECT-TO-CHIP COOLING MARKET
7.1 Indirect Cooling Market Overview and Estimates
7.2 Indirect Cooling - Key Applications
8. DATA CENTER LIQUID COOLING MARKET SEGMENTATION BY REGION
8.1 North America
8.3 Asia Pacific
8.4 Rest of the World (Latin America, Middle East and Africa)
9. COMPETITIVE LANDSCAPE
*List Not Exhaustive
9.1 Company Profiles
9.1.1 Data Center Liquid Cooling
18.104.22.168 Alfa Laval AB
22.214.171.124 Liquid Stack Inc.
126.96.36.199 Asetek AS
188.8.131.52 Asperitas Company
184.108.40.206 Chilldyne Inc.
220.127.116.11 CoolIT Systems Inc.
18.104.22.168 Fujitsu Limited
22.214.171.124 Mikros Technologies
126.96.36.199 Kaori Heat Treatment Co. Ltd
188.8.131.52 Lenovo group Limited
184.108.40.206 Liquid Cool Solutions
220.127.116.11 Midas Green Technologies
18.104.22.168 Iceotope Technologies Ltd
22.214.171.124 USystems Ltd
126.96.36.199 Rittal GmbH & Co. KG
188.8.131.52 Schneider Electric
184.108.40.206 Submer Technologies
220.127.116.11 Vertiv Co.
18.104.22.168 Wakefield-Vette Inc.
22.214.171.124 Wiwynn Corporation
9.1.2 Immersion Cooling - Dielectric Fluid Providers
126.96.36.199 3M Company
188.8.131.52 Engineered Fluids
184.108.40.206 Green Revolution Cooling Inc.
220.127.116.11 Solvay SA
10. COOLING TECHNOLOGY INNOVATIONS ACROSS THE VALUE CHAIN
11. INVESTMENT ANALYSIS AND MARKET OUTLOOK
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Frequently Asked Questions
What is the study period of this market?
The Data Center Liquid Cooling Market market is studied from 2020 - 2027.
What is the growth rate of Data Center Liquid Cooling Market?
The Data Center Liquid Cooling Market is growing at a CAGR of 24.84% over the next 5 years.
Which region has highest growth rate in Data Center Liquid Cooling Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Data Center Liquid Cooling Market?
North America holds highest share in 2021.
Who are the key players in Data Center Liquid Cooling Market?
Asetek AS, Rittal GmbH & Co. KG, Schneider Electric, Alfa Laval, Vertiv Co. are the major companies operating in Data Center Liquid Cooling Market.