Europe Data Center Cooling Market Size

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.