Philippines Data Center Cooling Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 14.90 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Philippines Data Center Cooling Market Analysis
The Philippines data center rack market reached a value of USD 178.6 million in the previous year, and it is further projected to register a CAGR of 14.9% during the forecast period.
- The increasing demand for 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 in the country/region.
- The upcoming IT load capacity of the Philippines data center market is expected to reach 950 MW by 2029. The country's construction of raised floor area is expected to increase to 5.3 million sq. ft by 2029.
- The country's total number of racks to be installed is expected to reach 260K units by 2029. NCR (Metro Manila) is expected to house the maximum number of racks by 2029. The average annual temperature is 27.1 °C, with relatively small seasonal variations of about 3 °C. Depending upon climatic conditions, the DC cooling is processed in the DC facilities.
- There are close to 23 submarine cable systems connecting the Philippines, and many are under construction.
Philippines Data Center Cooling Market Trends
Liquid-based Cooling is the Fastest Growing Segment
- Liquid cooling takes advantage of the superior heat transfer properties of water or other liquids to support efficient and cost-effective cooling of high-density racks, up to 3000 times more effective than using air. Long proven in mainframe and gaming applications, liquid cooling is increasingly being used to protect rack servers in data centers across the region.
- Direct liquid cooling solutions consistently deliver impressive partial power usage effectiveness (PUE) ranging from 1.02 to 1.03, surpassing the efficiency of even the most efficient air cooling systems by a marginal single-digit percentage. It's essential to note, however, that a significant portion of the energy efficiency improvement attributed to DLC is not reflected in the PUE metric. This is due to the fact that traditional servers incorporate fans that draw power from the rack, and their control mechanisms are factored into the IT power consumption portion of the PUE calculation. These fan power requirements are considered part of the data center's overall payload.
- Technological advances have made liquid cooling easier to maintain, more scalable, and more affordable, reducing data center liquid consumption by more than 15% in tropical climates and by 80% in greener areas. The energy used for liquid cooling can be recycled to heat buildings and water, and advanced artificial refrigerants can effectively reduce the carbon footprint of air conditioners.
- Further, the demand for online shopping has increased considerably post-pandemic. Cashless payments, product quality, and shopping at the convenience of the home have increased the demand proportionally for these online ecommerce platforms. The leading online eCommerce platforms are Shopee, Lazada, Zalora, and BeautyMNL. The Philippine ecommerce market is expected to increase from USD 17 billion to USD 24 billion by 2025. Thus, growing data consumption and the need for storage would increase data center facilities in the country.
IT & Telecommunication is the Largest Segment
- The ICT sector includes both IT and telecommunications markets. IT investment is on the rise, and the demand for the ICT market is expected to grow significantly over the next five years. According to the Department of International Trade, Philippine software services sales are expected to reach USD 95 million by 2025.
- According to Oracle, the Philippines recorded a 7.23% share in IT recruitment activity in August 2022, up 22.09% from July 2022. This shows that the IT department is growing. For example, in March 2022, Microsoft launched the Microsoft for Startups Founders Hub to boost startup ambition and drive innovation to foster economic and social progress in Asia and the rest of the world. Such efforts by the ICT market giants will help IT startups enter the Philippine ICT market to develop new hardware, software, and services.
- Cyberattacks are expected to continue to increase over the next five years. Advances in IT operations protect the ICT market from cyberattacks. As cloud-based platforms and enterprise software provide real-time data, they create greater value for businesses, especially by providing remote access. For example, Microsoft has introduced new and enhanced security services under a new service category known as "Microsoft Enterprise Security Professionals."
- Given the increasing digital adoption, Alibaba Cloud Intelligence intends to invest more in the Philippines after opening a data center. Allen Guo, the country manager for the giant technology firm, said at a press conference in Makati that the company was considering expanding the capacity of its data center to accommodate the growing use of digital platforms. Around 88% of the companies use cloud-based solutions in the Philippines. The growing demand for analytics and software for business purposes by the public and private industries is expected to boost the growth of the segment.
Philippines Data Center Cooling Industry Overview
The Philippines data center cooling market is moderately competitive, having gained a significant competitive edge in recent years. Currently, a handful of major players, including Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Rittal GmbH & Co. KG, and Mitsubishi Electric Hydronics & IT Cooling Systems SpA, dominate the market in terms of market share.
In March 2023, STULZ, a Hamburg-based company specializing in mission-critical air conditioning solutions, made a groundbreaking announcement regarding its industry-leading CyberAir 3PRO DX series. The company has introduced the use of the low global warming potential (GWP) refrigerant R513A in select units of this series, marking a significant milestone in its ongoing commitment to delivering environmentally sustainable air conditioning solutions for data centers. Furthermore, STULZ has embarked on a broader product transition initiative aimed at expanding the incorporation of R513A refrigerant across its entire product portfolio. This initiative underscores the company's dedication to providing eco-friendly cooling solutions for the data center industry.
Philippines Data Center Cooling Market Leaders
Stulz GmbH
Schneider Electric SE
Vertiv Group Corp.
Rittal GmbH & Co. KG
Mitsubishi Electric Hydronics & IT Cooling Systems SpA
*Disclaimer: Major Players sorted in no particular order
Philippines Data Center Cooling Market News
- March 2023: Interactive, a leading managed service provider, introduced the Immersion Data Center Cooling solution, designed to enhance high-performance computing (HPC) capabilities for its clients. Collaborating closely with digital infrastructure provider Vertiv, Interactive has integrated green revolution cooling tanks into its system. These tanks employ a single-phase, non-conductive coolant that ensures the safety of electrical components while boasting a remarkable heat transfer capacity, estimated to be 1200 times greater than that of traditional air cooling methods.
- May 2022: In a significant development, Intel committed a substantial investment of USD 700 million towards the establishment of a state-of-the-art research facility dedicated to liquid and immersion cooling technologies. This initiative underscores Intel's commitment to advancing data center sustainability. Simultaneously, Intel unveiled a pioneering immersion-cooled reference design, positioning it as an industry leader in promoting the widespread adoption of immersion-cooling technologies within data centers across the globe.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & 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 Increasing Volume of Digital Data
4.2.2 Emergence of Green Data Centers
4.3 Market Restraints
4.3.1 Costs, Adaptability Requirements, and Power Outages
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Cooling Technology
5.1.1 Air-based Cooling
5.1.2 Liquid-based Cooling
5.1.3 Evaporative Cooling
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Vertiv Co.
6.1.2 Stulz GmbH
6.1.3 Schneider Electric SE
6.1.4 Rittal GmbH & Co. KG
6.1.5 Mitsubishi Heavy Industries Limited
6.1.6 Fujitsu General Limited
6.1.7 Johnson Controls Inc.
6.1.8 Hitachi Ltd.
6.1.9 CoolIT Systems Inc.
6.1.10 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Philippines Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The Philippines data center cooling market is segmented by cooling technology type (air-based cooling, liquid-based cooling, and evaporative cooling) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Cooling Technology | |
| Air-based Cooling | |
| Liquid-based Cooling | |
| Evaporative Cooling |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
Frequently Asked Questions
What is the current Philippines Data Center Cooling Market size?
The Philippines Data Center Cooling Market is projected to register a CAGR of 14.90% during the forecast period (2024-2030)
Who are the key players in Philippines Data Center Cooling Market?
Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Rittal GmbH & Co. KG and Mitsubishi Electric Hydronics & IT Cooling Systems SpA are the major companies operating in the Philippines Data Center Cooling Market.
What years does this Philippines Data Center Cooling Market cover?
The report covers the Philippines Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Philippines Data Center Cooling Industry Report
Statistics for the 2024 Philippines Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Data Center Cooling analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
