Market Trends of LA Data Center Cooling Industry
This section covers the major market trends shaping the Latin America Data Center Cooling Market according to our research experts:
Information Technology Industry to Witness Highest Growth
- The IT industry needs on-premise private data storage centers and hyperscale data centers for its operations according to the size of the organization. Additionally, the adoption of cloud storage has increased over the years due to growth in SaaS providers, which is enabling cloud storage providers to expand their capacities and is expected to increase the demand for data center cooling systems.
- Cloud storage providers, like Microsoft, AWS, and Google, are expanding their storage capabilities to offer more efficient workflow on the cloud. These companies are making investments in hyperscale deals. In May 2018, Google announced that it was adopting liquid cooling systems for AI data crunching, as the heat generated by its new tensor processing units (TPUs) exceeded the limits of its previous data center cooling solutions.
- Moreover, CloudHQ stated that, by 2022, the industry is expected to get 350-megawatt storage campuses. In 2018, the company signed a 72-megawatt lease in Ashburn, the largest in data center history.
- In February 2018, the second-largest grocery chain in America, Albertsons Companies, announced the adoption of a cloud storage service from Microsoft to improve the retail experience. With this, the company planned to leverage the cognitive analytics, AI, and data science capabilities from Microsoft. Such advancements among top retailers are expected to launch new data center establishments, which will drive the demand of the data center cooling market.
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Emergence of Green Data Center
- With the growing need to expand, storage capacity has emerged as a big opportunity for every one of the major enterprises in the data center and storage space market, as there has been a consistent rise in the number of data-hungry customers and applications. Globally, the amount of data is set to grow drastically in the next few years.
- According to Huawei, the global estimate of data center demand is expected to increase by 3 to 10 times by 2030. Green Data Center (GDC), which provides effective and eco-friendly solutions in terms of data storage and reduction in energy consumption, is expected to witness great demand, owing to the positive outlook of the data center storage needs and new constructions, which has been brought about, due to the regulations and the anticipated rise in need to reduce the operational expenditure.
- According to Green House Data Inc., the data center industry sucks down over 30 GW of energy per year, and that amount increases every day. The carbon footprint of a medium 10 MW data center can range from 3,000,000 to over 130,000,000 kilograms of CO2. Reducing that carbon footprint through efficiency and renewable energy use has a dramatic effect. Depending on the electric grid region, PUE improvements can eliminate millions of pounds of CO2 emissions, consequently boosting the growth of the market.
- Despite the long-term savings and ROI, the renewable energy data centers have a high initial investment cost. A green data center solution consists of green power and cooling infrastructure solutions, coupled with energy-efficient equipment and management system, which are the factors driving the demand for green data centers over the other data centers.
- Power is an important part of green data center investments. Both low-power solutions and effective solutions support organizations to reach their coveted objectives. However, results from contemporary researches have shown that this trend is lagging down due to the effective green efficiency actions taken up in mature markets Asia-Pacific region. With the rising electricity usage, enhanced billings, and growing emissions of CO2 from these data centers, the need for green data centers is set to grow, thereby driving the data center cooling market forward in the region.
- For instance, according to IEA, the volume of global energy-related carbon dioxide emissions has steadily risen over the last decade, from 28.7 billion metric tons carbon dioxide emissions in 2009 to 33.3 billion metric tons in 2019. Also, Google emitted just above 15 million tons of carbon dioxide equivalents in 2018. Google reported that all of its emissions were neutralized by carbon offset projects.
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