Europe Data Center Cooling Market Size
*Disclaimer: Major Players sorted in no particular order
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Europe Data Center Cooling Market Analysis
The European Data Center Cooling market is expected to register a CAGR of 9.23% during the forecast period. The growing cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers and cooling markets in the region.
- Cooling technologies are usually selected based on the data centers' geographical location. As companies regularly seek to mitigate costs, energy-efficient cooling methods are being considered the potential alternatives to traditional cooling methods. Furthermore, the growth would be fuelled by edge computing adoption and the increase in IoT devices.
- Development in IT Infrastructure in emerging European countries such as Hungary, Greece, Poland, and Turkey would increase the construction of hyperscale data center facilities with over 50 MW power capacity. It would feed the data center cooling systems needed in the market. The United Kingdom, Germany, and France recorded the highest data centers across Europe, and industry players can target these countries to invest in their new technologies. Also, they can form partnerships with upcoming data center organizations to cater to their requirements at a competitive price, which may aid the growth of the European data center cooling market over the forecast period.
- The cooling systems are responsible for almost 40% of the data center power consumption. Companies are trying to tackle this issue by setting up Green data centers. The growing trends toward deploying green data centers for storing, managing, and distributing information helped many software companies reduce energy consumption and the total energy cost. For Example, Green technologies, such as Immersion4 in combination with AI, are changing how data centers operate to make them more sustainable with efficient energy usage and low carbon footprint. Such Green Data centers' emergence drives the demand for Cooling units in the region.
- The data center cooling systems require a high initial investment to set up and maintain the cooling systems, which could restrain the market. However, many local vendors and market players are coming up with innovative solutions by modifying the existing data centers at a low cost to reduce the cost of setting up a new unit. Additionally, reduced carbon emission and cooling issues during power outages could hamper the growth of the European Data Center Cooling Market.
- The COVID-19 pandemic impacted the market owing to the lockdowns, shortage of devices, and supply chain disruptions to set up new data centers and update the existing data centers. On the other hand, there is a massive rise in the data volume and Mobile data usage in European countries, anticipated to boost the setup of data centers across the European region. It is thereby propelling the market growth over the forecast period. Also, government support is projected to stimulate the development of the data center cooling market over the forecast timeframe.
Europe 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 IT equipment with energy-efficient cooling. 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, such as IT, BFSI, Telecommunication, etc., in the region.
The Europe Data Center Cooling Market is segmented by solution (air conditioners/handlers, chillers, economizer systems, liquid cooling systems, row/rack/door/overhead cooling systems), service (installation and deployment, consulting, support, and maintenance services), end-user industry (information technology, BFSI, telecommunication, healthcare, government, retail, and other end-use industry types), and country (United Kingdom, Germany, France, and rest of Europe).
The market sizes and forecasts are in terms of value (USD million) for all the above segments.
|Liquid Cooling Systems|
|Row/Rack/Door/Overhead Cooling Systems|
|Installation and Deployment|
|Consulting, Support, and Maintenance Services|
|By End-user Industry|
|Other End-user Industries|
|Rest of Europe|
Europe Data Center Cooling Market Trends
This section covers the major market trends shaping the Europe Data Center Cooling Market according to our research experts:
Retail Industry is Expected to Hold Significant Market Share
- In the retail industry, the increasing users in e-commerce and online spending is creating an enormous volume of Big Data, expected to propel the need for data storage, security, and reduced latency. It is thereby boosting the region's expenditure and the number of data centers. Rapid development in the retail sector and industry 4.0 trends are also responsible for the data center's rise, enhancing the cooling device's need.
- Due to the increasing number of online users, foreign retail companies regularly invest in European countries to expand their storage capacity, increasing internet traffic and the load on data centers. For instance, JD.com, a Chinese e-commerce giant, recently confirmed a strategic entry into the European retail sphere. Due to stringent regulations in the region, foreign companies investing in the area may store their data locally for smooth transitions regarding the data protection law. As a result, the usage of data center cooling systems is expected to increase, thereby boosting the market growth in the region over the forecast period.
- Notably, according to the E-commerce Foundation, the European B2C e-commerce turnover is expected to expand by approximately 13% to reach USD 621 billion due to the high internet penetration in the region. It may increase the Big Data volume, leading to more data centers and cooling systems in the area.
- Further, according to Eurostat, Italy and Poland witnessed tremendous growth in e-commerce users. It led to the generation of a vast amount of data, thereby strengthening storage requirements. As a result, the European data center cooling market is expected to expand over the forecast period.
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United Kingdom Accounts for the Largest Market Share
- Companies in the UK are rigorously investing in new data centers. It is expected to positively impact the market growth in the region over the forecast period. For instance, Interxion, a European colocation and networking company, commenced its third data center in London, expanding carriers and CDNs for consumers. This development is expected to propel the cooling system utilization, fostering the market growth.
- Moreover, H&M, a fashion retailer in the country, plans to integrate a cooling and heat recovery system in its new data center in Stockholm. The excess heat generated from the data center is reused by Fortum Värme, an energy company, by distributing it to customers (2,500 modern residential apartments at full load) throughout the city.
- The UK recorded the highest number of data centers across Europe. Industry players can target these countries to invest in their new technologies. Also, they can form partnerships with upcoming data center organizations to cater to their requirements at a competitive price, which may aid the growth of the European data center cooling market over the forecast period.
- Green and renewable solutions, such as green electricity, water reclamation, zero water cooling systems, recycling, and waste management, are being used to build the most sustainable data centers. Notably, growth in Big Data volume across European countries, including the United Kingdom, is expected to increase the need for low-latency and high-capacity data centers, thereby boosting cooling system utilization. According to Science Direct, data center energy use might account for 2.13% of worldwide electricity supply over the forecast period.
- Further, companies are regularly trying to reduce their operational cost across their verticals, increasing the AI technology used in data center cooling systems in the country. For instance, Siemens introduced AI-based thermal optimization, wherein the company utilizes Vigilant AI products to enhance cooling systems in data centers.
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Europe Data Center Cooling Industry Overview
The European data center cooling market is fragmented as the 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. Some major market players are IBM Corporation, Fujitsu Ltd., Hitachi Ltd, Hewlett-Packard Enterprise, and Schneider Electric SE. 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. Some of the current advancements in the market are:
- In November 2022, Vertiv, a power, precision cooling, and infrastructure management systems manufacturer, launched the Liebert XDU liquid cooling distribution unit in Europe with two available capacities of 450 KW and a model capable of up to 1368 KW. This XDU is designed to be water-efficient and support high-density data centers that run applications such as analytics and machine learning. This XDU system contains controls for varying pump speed and getting the best water flow and temperature and provides alerts if it overflew.
- In September 2022, Schneider Electric and its partner Total Power Solutions designed and delivered a new high-power cooling system to help reduce the power usage of the University College of Dublin's main production data center. The new solution at UCD contains ten independent InRow DX cooling units, which are rightsized to the server load to optimize efficiency.
Europe Data Center Cooling Market Leaders
Schneider Electric SE
*Disclaimer: Major Players sorted in no particular order
Europe Data Center Cooling Market News
- November 2022- Havering Council, in collaboration with Digital Reefs, plans to build a massive new data center in the eastern London Borough of Havering on a site of 175 hectares. The proposed campus would consist of ten 50 MW and five 20 MW units of cooling centers, collectively supporting 600 MW of capacity.
- October 2022- The BP-owned lubricant brand Castrol partnered with Submer, an immersion cooling system manufacturer, to test new cooling fluids and server equipment using Submer’s MicroPod and SmartPod immersion cooling units. It opened a test facility center at Berkshire.
Europe Data Center Cooling Market Report - 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 Market Overview
4.2 Market Drivers
4.2.1 Development in IT Infrastructure in the Emerging Countries
4.2.2 Emergence of Green Data Centers
4.2.3 Retail Industry is Expected to Hold Significant Market Share
4.3 Market Restraints
4.3.1 High Investment Costs
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Solution
5.1.1 Air Conditioners/Handlers
5.1.3 Economizer Systems
5.1.4 Liquid Cooling Systems
5.1.5 Row/Rack/Door/Overhead Cooling Systems
5.2 By Service
5.2.1 Installation and Deployment
5.2.2 Consulting, Support, and Maintenance Services
5.3 By End-user Industry
5.3.1 Information Technology
5.3.7 Other End-user Industries
5.4 By Country
5.4.1 United Kingdom
5.4.4 Rest of Europe
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 IBM Corporation
6.1.2 Fujitsu Ltd
6.1.3 Hitachi Ltd
6.1.4 Hewlett-Packard Enterprise
6.1.5 Schneider Electric SE
6.1.6 Asetek A/S
6.1.7 Vertiv Co.
6.1.8 Rittal GmbH & Co. KG
6.1.9 The 3M Company
6.1.10 STULZ GmbH
6.1.11 Vigilent Corporation
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Data Center Cooling Market Research FAQs
What is the study period of this market?
The Europe Data Center Cooling Market market is studied from 2019 - 2027.
What is the growth rate of Europe Data Center Cooling Market?
The Europe Data Center Cooling Market is growing at a CAGR of 9.23% over the next 5 years.
Who are the key players in Europe Data Center Cooling Market?
IBM Corporation, Fujitsu Ltd., Hitachi Ltd, Hewlett-Packard Enterprise, Schneider Electric SE are the major companies operating in Europe Data Center Cooling Market.
Europe Data Center Cooling Industry Report
Statistics for the 2023 Europe Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Data Center Cooling analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.