The data center cooling market size has shown rapid growth in recent years, rising from $14.66 billion in 2023 to $17.09 billion in 2024, reflecting a compound annual growth rate (CAGR) of 16.6%. This growth is attributed to the rapid expansion of data centers, high-density computing, energy efficiency concerns, regulatory compliance, globalization of data storage, and increased heat load per rack. Projections indicate continued rapid growth, with the market expected to reach $31.93 billion in 2028, reflecting a CAGR of 16.9%. This future growth is driven by the integration of renewable energy, focus on water conservation, adoption of heat recovery systems, modular data center solutions, and immersive cooling techniques. Key trends in the forecast period include liquid cooling solutions, free cooling techniques, AI-driven cooling management, high-density cooling systems, edge data center cooling solutions, and cooling-as-a-service models.
Major Driver In The Data Center Cooling Market
Green initiatives aimed at fostering eco-friendly data center solutions are steering the growth of the data center cooling market. Recognizing the substantial energy consumption of data centers, companies are adopting environmentally conscious practices to mitigate their environmental impact. These initiatives encompass the implementation of green electricity, water reclamation, zero water cooling systems, and efficient waste management, fostering the development of sustainable data centers. According to Science Direct, data center energy use is projected to account for 2.13% of global electricity supply by 2030. In 2021, Microsoft incorporated these sustainable practices in its Azure datacenters, exemplifying the integration of green initiatives driving the data center cooling market growth. The market size for data center cooling in 2028 is anticipated to reflect this trend.
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Data Center Cooling Market Competitive Landscape
Hitachi Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, Fujitsu Limited, ABB Group, Hewlett Packard Enterprise Company, Daikin Industries Ltd., Johnson Controls International plc, Eaton Corporation, Emerson Electric Co., Trane Technologies plc, Climaveneta Climate Technologies S.p.A., Vertiv Group Corporation, Alfa Laval AB, Rittal GmbH & Co. KG, Ebullient Inc., Munters Group AB, Black Box Corporation, Nortek Air Solutions LLC, Coolcentric Inc., Airedale International Air Conditioning Limited, Asetek Inc., Usystems Inc., Midas Green Technologies Inc., Liquid Cool Solutions LLC, Green Revolution Cooling Inc., Submer Technologies Inc., Delta Power Solutions, Adaptivcool Ltd., Interxion Holding NV
Key Data Center Cooling Market Trend
Major players in the data center cooling sector are introducing new products like immersion cooling fluids to boost market profitability. These fluids, also called coolants or dielectric fluids, are specialized liquids used in immersion cooling systems to absorb and dissipate heat from electronic components such as servers and IT hardware. For example, in October 2023, ExxonMobil Corporation, a US-based natural gas company, launched new data center immersion cooling fluids. ExxonMobil's fluids are designed to enhance energy efficiency and performance, offering both synthetic and non-synthetic options with varying thermal capacities. They are tailored for low viscosity to improve heat removal, ensuring compatibility with different materials and extending equipment lifespan. These fluids are crucial for liquid cooling in data centers, aiming to boost energy efficiency, cut water consumption, and enhance rack density, potentially leading to a 40% reduction in the total cost of ownership for IT equipment.
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Data Center Cooling Market Segmentation
The data center cooling market covered in this report is segmented –
1) By Data Centre Type: Large Data Centers, Enterprise Data Centers, Mid-sized Data Centers
2) By Cooling Technology: Rack/Row-Based, Room-Based
3) By Component: Solution, Service
4) By Industry: Banking, Financial Services and Insurance (BFSI), Information Technology (IT) And Telecom, Research And Academic, Government And Defense, Retail, Energy, Manufacturing, Healthcare, Other Industries
By Geography:The regions covered in the data center cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the data center cooling market in 2023.
The Data Center Cooling Global Market Report 2024 furnishes information about the global data center cooling market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
