Data Center Cooling Market Size

Data Center Cooling Market Analysis

The Data Center Cooling Market size was estimated at USD 16.56 billion in the current year to USD 34.51 billion in five years, registering a CAGR of 15.82% during the forecast period.

Due to the high computational needs of AI and media applications, data centers are being deployed increasingly. Moreover, the adoption of edge computing and this growth will be helped by a growing share of Internet of Things devices.

• The market for liquid cooling of data centers is predicted to show substantial growth due to the increase in digitization leading to greater computer performance, and it requires a large number of small chips to be integrated. The design of data centers and the need to cool them are influenced by powerful computer hardware for Artificial Intelligence (AI) workloads. Manufacturers are introducing large silicon chips to optimize the performance of artificial intelligence and high-performance computing workloads. The use of powerful GPUs in artificial intelligence and high-performance computing environments supports the need for data center cooling technologies.
• The increasing use of OTT and streaming services has led to a growth in data, driving market development. Increased data from online streaming services such as Disney+ Hotstar, Hulu, and Netflix will drive the demand for data center cooling systems with effective cooling performance. There is a growing need to ensure that Data Center Cooling Service Providers have the capacity and ability to provide efficient products during peak traffic periods on the market.
• The Green Data Centre is the place where you store, manage, and distribute your data. It is planned that mechanical, lighting, electrical, and computer systems will be as energy efficient as possible while minimizing their adverse environmental impacts. Innovative methods and technologies are used to construct and manage green data centers. Data centers' energy consumption is increasing significantly due to the exponential growth and use of the Internet. Due to the environmental impact, increase in public awareness, higher energy costs, and governmental action, companies are under increased pressure to adopt green policies. The development of the sustainable data center has directly impacted the Data Centres Cooling Market due to these factors.
• However, the market's growth is hampered by the need to adapt and power shortages. A standard, standardized, modular data center air conditioning system is required. With companies looking to reduce costs and not willing to spend a lot of money on high-end customized cooling systems, they need to be scalable and flexible enough to meet data center needs that are very challenging today.
• The COVID-19 outbreak negatively influenced a cooling market for data centers. Temporary suspension of activities has been imposed on enterprises, such as the consolidation of data centers. Due to mandatory social distance rules, physical changes of servers, building closures, and opening new facilities were more complicated. This has led to an unprecedented demand for data centers across the world. However, tremendous savings have shifted to upfront CapEx investments in IT following the pandemic. In addition, the use of cloud services has increased, and there is a need for new technological and operating skills. Therefore, the growth in the need for a data center cooling market is expected to be supported by this factor and an upward trend over the forecast period.