Press release
Future of the Data Center Cooling Market: Trends, Innovations, and Key Forecasts Through 2034
Data Center Cooling
Data Center Cooling Market Size Growth Forecast: What to Expect by 2025?
The expansion of the data center cooling market has been swift in the previous years. The market value is projected to elevate from $16.97 billion in 2024 to $19.5 billion in 2025, experiencing a compound annual growth rate (CAGR) of 14.9%. Factors contributing to the historic period growth include the exponential increase in data centers, high-density computing, attention towards energy efficiency, regulatory compliance, the internationalization of data storage, and a rise in heat load per rack.
How Will the Data Center Cooling Market Size Evolve and Grow by 2029?
The market size for data center cooling is predicted to experience a substantial increase in the coming years, with a projected value of $36.57 billion in 2029. This represents a compound annual growth rate (CAGR) of 17.0%. This anticipated growth during the forecast period can be linked to the incorporation of renewable energy, an emphasis on water conservation, heat recovery systems, and the introduction of modular data center solutions as well as the implementation of immersive cooling. Throughout the forecast period, notable trends to watch for includes the use of liquid cooling solutions, cooling techniques that are free, cooling management powered by AI, high-density cooling systems, edge data center cooling solutions, and cooling provided as a service models.
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What Drivers Are Propelling the Growth of Data Center Cooling Market Forward?
The escalation in global temperatures is anticipated to be a significant factor in propelling the development of the data center cooling market throughout the forecast period. The escalating global temperatures can be attributed to various causes such as the increasing greenhouse gas emissions due to human activities, deforestation, industrial operations, and fossil fuel burning, which intensify the greenhouse effect resulting in trapped heat within Earth's atmosphere. As a vital tool in battling the increasing global temperatures, data center cooling systems are becoming increasingly crucial, as they aid in keeping servers in optimal functioning conditions and avoiding overheating in high energy-consuming facilities. For example, in June 2023, a report by the National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information, a US-based organization that provides reliable climate, weather, and environmental data, stated that global surface temperatures registered by NOAA noted a rise to 1.00 °C (1.80 °F) over the average temperature. This was cited as the fourth-highest April temperature in their 174-year record, denoting a significant hike compared to the 0.85 °C (1.53 °F) temperature observed in April 2022. In light of this, the surge in global temperatures is expected to fuel the demand for data center cooling in the future.
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What Are the Key Trends Driving Data Center Cooling Market Growth?
Leading firms in the data center cooling market, such as ExxonMobil Corporation, are introducing innovative products such as immersion cooling liquids to boost their market profitability. Also referred to as dielectric fluids or coolants, these immersion cooling solutions are specialized liquids used within immersion cooling systems to soak up and regulate the heat produced by digital devices like servers and various other IT hardware. Demonstrating this trend, ExxonMobil Corporation, an American natural gas corporation, rolled out its immersion cooling fluids for data centers in October 2023. ExxonMobil's data center coolants, engineered with energy efficiency and high performance in mind, present a vast selection of both synthetic and non-synthetic options with different thermal capacities. These fluids are customized to have reduced viscosity enabling effective heat removal and ensures compatibility with a variety of materials, thus prolonging equipment lifespan. Immersion cooling fluids are vital for liquid cooling within data centers, with the ambition to optimize energy efficiency, lessen water use, and amplify rack density, resulting in up to a 40% decrease in total cost of ownership for IT hardware.
What Are the Key Segments in the Data Center Cooling Market?
The data center coolingmarket 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 Or 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, Healare, Other Industries
Subsegments:
1) By Large Data Centers: Hyperscale Data Centers, Cloud Data Centers, Co-Location Data Centers
2) By Enterprise Data Centers: Private Enterprise Data Centers, In-House Data Centers
3) By Mid-Sized Data Centers: Edge Data Centers, Regional Data Centers
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Who Are the Key Players Shaping the Data Center Cooling Market's Competitive Landscape?
Major companies operating in the data center cooling market include 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, 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.
What Geographic Markets Are Powering Growth in the Data Center Cooling Market?
Asia-Pacific was the largest region in the data center cooling market in 2024. North America was the second-largest market in the data center cooling market share. The regions covered in the data center cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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