Data Center Cooling Market Size Worth $45.70 Billion, Globally, by 2031 - Exclusive Report by The Insight Partners

PR Newswire · 10/15 14:01

The data center cooling market size is expected to reach US$ 45.70 billion by 2031 from US$ 13.29 billion in 2023 to record a CAGR of 16.7% during 2023–2031.

NEW YORK, Oct. 15, 2024 /PRNewswire/ --  According to a new comprehensive report from The Insight Partners, the global data center cooling market is observing significant growth owing to increasing demand for compute-intensive workloads and rising investments in data centers.

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The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the data center cooling market size comprises a vast array of component, payment system, end user and geography which are expected to register strength during the coming years.

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Overview of Report Findings:

1.  Market Growth: The data center cooling market share was valued at US$ 13.29 billion in 2023 and is projected to reach US$ 45.70 billion by 2030; it is expected to register a CAGR of 16.7% during 2022–2030. 

2.  Technological Innovations: The future trend of AI-optimized cooling in the data center market is expected to gain traction in the coming years as organizations seek to efficiently manage excessive heat generated by using advanced technologies such as AI, machine learning, and edge computing. This trend is driven by the need to maintain optimal operating temperatures for high-density equipment, which is challenging for traditional cooling systems. AI-optimized cooling leverages artificial intelligence to dynamically monitor and adjust cooling systems in real-time, ensuring energy efficiency and hardware reliability in AI-driven data center environments. For instance, in 2024, companies such as Eaton introduced SmartRack modular data center solutions that integrate IT racks, cooling, and service enclosures, catering to the escalating need to incorporate machine learning, edge computing, and AI into the solutions. Additionally, in June 2024, Asetek and Fabric8Labs announced a partnership that might redefine the liquid cooling industry. At Computex 2024, these two innovative companies unveiled the AI-Optimized Cold Plate, a pioneering solution in liquid cooling technology designed to push the boundaries of performance and efficiency. As AI-optimized cooling continues to evolve, it is poised to play a paramount role in shaping the future of data center operations. It offers sustainable and efficient solutions for managing escalating thermal demands in modern data centers.

3.  Increasing Demand for Compute-Intensive Workloads: Various industries are incorporating AI and machine learning to enhance customer experience, bolster cybersecurity measures, and revolutionize their business processes. The deployment of these technologies and the optimization of their value necessitate robust infrastructure capable of handling increasingly complex workloads. The compute-intensive nature of AI model training has driven the evolution of hardware to meet the escalating demands of AI and other advanced applications. For instance, in April 2024, Lenovo announced a comprehensive new suite of purpose-built AI-centric infrastructure systems and solutions to advance Hybrid AI Innovation from edge to cloud. Lenovo is delivering GPU-rich and thermally efficient solutions intended for compute-intensive workloads across multiple environments and industries. In the financial services and healthcare industries, customers are managing massive data sets that require extreme I/O bandwidth, and Lenovo is providing the IT infrastructure solutions vital to the management of critical data. Across all these solutions is Lenovo TruScale, which provides the ultimate flexibility, scale, and support for customers to on-ramp demanding AI workloads completely as a service. In March 2024, NVIDIA announced the launch of NVIDIA Blackwell GPU architecture. The Blackwell GPU architecture is the world's most powerful chip, packed with 208 billion transistors. It is manufactured using a custom-built 4NP TSMC process with two-reticle limit GPU dies connected by 10 TB/second chip-to-chip link into a single, unified GPU. When electricity passes through a semiconductor, it creates heat. The more powerful the chip, the higher the heat released, which necessitates the need for cooling solutions in data centers.

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4.  Rising Investments in Data Centers: Pressure to decarbonize data centers, climate change, unpredictable weather events, and the use of powerful computers are a few factors encouraging organizations to invest in cooling and energy-efficient technologies for data centers. The escalating demand for data center cooling solutions is fueled by the need for effective cooling technologies to maintain optimal operating conditions as these centers expand to accommodate increasing workloads and storage demands. The demand for data centers is increasing, prompting investments in companies that operate them. For instance, in January 2024, Vantage Data Centers, a global provider of hyperscale data center campuses, announced a US$ 6.4 billion equity investment led by investment channels managed by DigitalBridge Group, Inc., the leading global alternative asset manager dedicated to investing in digital infrastructure, and Silver Lake—the global leader in technology investing. This substantial investment reflects the escalating demand for hyperscale data center campuses, which drives the need for advanced cooling solutions to maintain optimal operating conditions. These investments in data centers worldwide reflect the increasing demand for data center campuses, which drives the need for advanced data center cooling solutions to maintain optimal operating conditions. Thus, rising investments in data centers fuel the data center cooling market growth.

5.  Geographical Insights: North America dominated the data center cooling market share in 2023. Europe is the second-largest contributor to the global data center cooling market, followed by Asia Pacific data center cooling market.

Market Segmentation:

  • In terms of component, the market is segmented into chillers, air conditioning systems, heat exchangers, cooling towers, air handling units, humidifiers, and others. The air conditioning systems segment dominated the market in 2023.

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  • By cooling type, the market is categorized into room-based cooling, rack-based cooling, and row-based cooling. The room-based cooling segment dominated the market in 2023.
  • Based on data center type, the data center cooling market is segmented into enterprise data center, colocation data center, wholesale data center, and hyperscale data center. The hyperscale data center segment dominated the market in 2023.
  • In terms of industry vertical, the market is categorized into BFSI, manufacturing, IT & telecom, media & entertainment, retail, government & defense, healthcare, energy, and others. The IT & telecom segment dominated the market in 2023.
  • The data center cooling market is segmented into five major regions: North America, Europe, Asia pacific data center cooling market, Middle East and Africa, and South and Central America.

Competitive Strategy and Development:

  • Key Players: A few major companies operating in the global data center cooling market include Asetek, Inc.; Fujitsu Ltd; Mitsubishi Corp; Rittal GmbH & Co KG; Schneider Electric SE; Stulz SpA; Trane Technologies Plc; Vertiv Group Corp.; Black Box Corporation; Carrier Global Corp; Aspen Systems, LLC.; Daikin Industries Ltd; Delta Electronics Inc; Danfoss AS; Alfa Laval AB; Hewlett Packard Enterprise Development LP; Boyd Corp; Evapco Inc; Motivair Corporation; and Madison Industries.
  • Trending Topics: Data Center Cooling Fans, Data Center Colocation, Data Center Construction, Hyperscale Data Center, among others

Global Headlines on Data Center Cooling Market:

  • "Alliance Air, a subsidiary of Daikin Applied, a leading global commercial and industrial HVAC manufacturer, broke ground for the construction of a new energy-efficient manufacturing facility in Tijuana, Mexico, to support sustainable North America data center cooling market growth. This expanded facility allows the company to better serve customers in North America data center cooling market with a single supplier for end-to-end HVAC solutions. The expansion builds on the legacy of Alliance Air in Tijuana, which is also celebrating 20 years in the community and is now partnered with the 100-year legacy of industry leader Daikin Industries."
  • "Vertiv announced a new portfolio of high-density data center infrastructure solutions to support the higher cooling and power requirements of the accelerated computing IT stack. The new Vertiv 360AI solutions are designed to accelerate AI adoption through pre-engineered infrastructure solutions, digitized management, and end-to-end service, resulting in up to 2x faster deployment compared to typical infrastructure installation."

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  • "Mitsubishi Heavy Industries, Ltd. (MHI) developed a new 40kVA-class 12ft container-type data center with an immersion/air-cooled hybrid cooling system capable of simultaneously housing servers utilizing three types of cooling methods: immersion cooling (25kVA), air cooling (8kVA), and water cooling (8kVA). The newly developed data center was the successor to the container-type immersion cooling data center that has been under development since 2021. Servers with different cooling methods for a variety of applications (by power density) can be mounted in the unit simultaneously, accommodating a diverse range of servers and other devices for edge computing to process data at the periphery (edge) of computer networks."
  • "STULZ, the global mission-critical air conditioning specialist, announced the launch of CyberCool CMU—an innovative new coolant management and distribution unit (CDU) that is designed to maximize heat exchange efficiency in liquid cooling solutions."

In terms of revenue, North America dominated the data center cooling market share, followed by Europe and Asia pacific data center cooling market. The North America data center cooling market is segmented into the US, Canada, and Mexico. The US is anticipated to hold the largest data center cooling market share by 2031. Data centers in the US rely on a variety of cooling solutions to manage the substantial heat generated by the operation of millions of servers. The industry has traditionally used air-cooling methods, but there is a growing emphasis on more efficient and sustainable cooling technologies such as brazed plate heat exchangers, precision cooling units, direct air cooling, and liquid cooling technologies.

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Companies such as Alfa Laval, Schneider Electric, Munters, USystems, and STULZ are at the forefront of providing advanced cooling solutions for data centers. As the demand for effective data center cooling solutions continues to rise, the industry is exploring innovative technologies such as smart cooling systems using AI and machine learning (ML), geothermal cooling methods, and evaporative cooling to enhance sustainability and energy efficiency. For instance, GIGABYTE Technology, Giga Computing, a subsidiary of GIGABYTE, an industry leader in AI & HPC servers and an integrator for direct liquid cooling (DLC) & Immersion cooling technology, announced a range of advanced cooling products, a few of which were showcased at the SC23 event.

Conclusion:

Factors such as increased demand for compute-intensive workloads and increasing investments in data centers drive the data center cooling market. The market is expected to grow in the forecasted period owing to advancements in liquid cooling technologies and a rise in data center cooling robots. The rise in AI-optimized cooling is a key trend in the market. Moreover, the rising strategic initiatives taken by major companies, such as the collaboration between Intel Corporation and Submer to develop a solution for cooling chips with high Thermal Design Power (TDP), contribute to the growth of the market. Furthermore, the escalating need for energy-efficient and robust data center cooling solutions, coupled with the increasing penetration of the Internet; cloud computing; and technologies such as AI, IoT, and big data, are projected to fuel the adoption of data center liquid cooling. The market is also witnessing a greater use of high-performance computing (HPC), which is contributing to the demand for data center cooling solutions.

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The report from The Insight Partners, therefore, provides several stakeholders—including raw material suppliers, data center cooling manufacturers, system integrators, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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