Data Center Liquid Cooling Market Overview
Data Center Liquid Cooling Market size is forecast to reach $1.9 billion in 2021, estimated to grow at a CAGR of 25.6% during 2022-2027. The increasing adoption of various liquid cooling strategies such as dielectric cooling over air cooling in order to manage equipment temperature is boosting the Data Center Liquid Cooling Market. In addition, the growing demand for room-level cooling for cloud computing applications is tremendously driving the data center cooling systems market size during the forecast period 2022-2027. The outsourcing of data center services to a colocation facility frees-up precious IT power, enabling a company to rely more on research and development rather than on an ongoing basis learning the ins and outs of its network. Google company is investing a whopping $9.5 billion in data centers and U.S. offices in 2022. Money that may have been invested on running a data center might go into market analysis or product creation, providing additional ways for corporations to make the most of their current capital and achieve their business objectives.
Data Center Liquid Cooling Report Coverage
The report: “Data Center Liquid Cooling Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Data Center Liquid Cooling Market Report.
Key Takeaways
- In 2021, the Data Center Cooling System market was dominated by North American region owing to the adoption of environmental-friendly solutions in the data centers.
- The integration of artificial intelligence (AI) based on algorithms in order to predict the energy usage by the equipment in the data centers is further accelerating the market growth.
- With the growing demand for environmental-friendly solutions in order to reduce carbon footprints from the data centers is leading to fuel the demand for Data Center Liquid Cooling Market.
- The rising inefficient power performance leading to the shut-down of the cooling systems in data centers and further leading to financial risk to businesses. This factor is thus hampering the growth of the market.
Data Center Liquid Cooling Market Segment Analysis - By Industry Vertical
Telecommunication segment held the largest market share in the Data Center Cooling System market in 2021 at 34.1%. The demand for effective data centers is growing tremendously which is leading the telecommunication sector to keep their facilities operational. This is also leading to the reliability, energy consumption and maintenance. The need for efficiently managing thermal loads in the telecom facilities and electronic enclosures are enhancing the data cooling systems market. In addition, the rising usage of Data Center Liquid Cooling allows telecom customers to install more communication equipment.
Data Center Liquid Cooling Market Segment Analysis – By End User
Data Center Cooling Market is segmented into Tier 1, Tier 2 and Tier 3 on the basis of organization size. The Tier 1 segment is anticipated to witness the highest market share of 49.4% in 2021. Commoditization and ever-increasing data center architecture changes have tilted the balance in favor of outsourced colocations. Colocation services have the facility's construction experience and pricing capacity by economies of scale. This results to provide electricity, energy and cooling at rates that individual businesses who develop their own data centers cannot access. Consequently, colocation service providers operate their facilities considerably more effectively. The return-on-investment model no longer supports businesses that are developing their own vital project facilities. Another major driver for the new IT network is the drastic rise in demand for higher power densities. Virtualization and the continuing push to accommodate more workloads within the same footprint have created problems for existing data centers designed for the purpose. From a TCO (total cost of ownership) viewpoint, the expense of retrofitting an existing building with the electricity and cooling systems required to meet network demands is significantly greater than the cost of utilizing new colocation facilities. These two considerations have tilted the scales in favor of colocation.
Data Center Liquid Cooling Market Segment Analysis - By Geography
In 2021, North America dominated the Data Center Cooling System market with a share of more than 38.1%, followed by Europe and APAC. The adoption of data center cooling technologies such as calibrated vectored cooling, chilled water system and others by mid-to-large-sized organizations in the US are driving the market growth in this region. Additionally, the US-based data centers and companies are majorly focusing on the need for cost-effective and environmentally friendly solutions which results in the demand for efficient Data Center Liquid Cooling. Furthermore, the presence of an increasing number of data centers in the US is further propelling the growth of data center cooling system market in this region.
Data Center Liquid Cooling Market Drivers
Rising need for Environmental-Friendly Solutions
The growing demand for money-saving and eco-friendly solutions for the reduction of energy consumed in IT and telecom industry is enhancing the demand for Data Center Liquid Cooling. The development of data center with ultra-low-carbon footprint by key player such as Schneider Electric is further embracing the growth of the market. Therefore, the demand for reducing carbon footprint of data centers is further escalating the need for environmentally friendly solutions which will thereby drive the data center cooling system market. Indian data centers to see 5-fold capacity growth with up to $15.4 billion investment, a significant portion on more environment friendly solutions.
Integration of Artificial Intelligence in the Cooling Systems
The deployment of advanced technology has highly enhanced various facilities and systems such as Data Center Liquid Cooling. This deployment has led to the integration of artificial intelligence (AI) for data center cooling that gathers data by using sensors in every five minutes. The AI-based algorithms has become the major factor which is predicting the different combinations in a data center negatively and positively which affects the use of energy. As companies are looking for ideal solutions in order to maintain temperatures in their data centers which is further embracing the AI, and thus surging the growth for the market. According to research, over 30% of traditional data centers have closed due to a lack of AI or machine learning strategy. This is set to change Data Center investment strategy over the next few years.
Data Center Liquid Cooling Market Challenges
Inefficient Power Performance
Data centers require a huge amount of power to run effectively, and the presence of inefficient power performance becomes a critical issue for data center to run smoothly. The lack of effective power performance leads to slow or shut down of the cooling systems that further results in the closing of data center in order to avoid any damage to the equipment. This shut down of the data center also results in affecting the business operation causing financial risk to the business. Therefore, this key factor leads to hamper the growth of the data center cooling system market.
Data Center Liquid Cooling Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Data Center Liquid Cooling Market. The Data Center Liquid Cooling top 10 companies include:
- Emerson
- APC/Schneider Electric
- Rittal Corporation
- Chilldyne
- Midas Green Technologies
- Icetope Technologies
- Alfa Laval AB
- Verve Holdings
- Asetek
- Fujitsu
Recent Developments
- In July 2020, Green Revolution Cooling (GRC) major provider of single-phase immersion cooling for data centers announced the closing of $7 million series B investment. This funding will allow GRC to raise additional capital in order to support new product development and strategic partnerships. This new funding will enhance OEM agreement with Dell offering warranty coverage for Dell servers in GRC immersion systems. The other agreement will include OEM agreement with HPE, pilot projects leading to production installations, extension of many existing customer locations, winning phase one of the AFWERX initiative of the Air Force.
- In May 2020, Schneider Electric partnered with EcoDataCenter in order to develop an ultra-low-carbon-footprint data center at HPC colocation in Falun, Sweden. This data center will be amongst the most sustainable data center in the Nordics, which will enhance Schneider’s EcoStruxure Building Operation, Galaxy VX UPS with lithium-Ion, and MasterPact MTZ are just some of the solutions.
- In January 2020, Yotta Infrastructure had announced of building the largest data center in India. With the help of Yotta NM1, one of the data center building the company will be forming a data center park which will provide overall capacity of 30,000 racks with 210 MW power. This development of Yotta data centerpark will offer unlimited scalability of collocation space and power for business enterprises as well as hyper scale cloud operators towards better operation management of cloud clusters.
