According to a new research report by Global Market Insights, Data Centre Cooling Market size is poised to surpass USD 15 billion by 2024.
The rise in smartphone and Internet penetration in several countries including Indonesia, Vietnam, India, China, and Japan is expected to fuel data centre cooling market growth over the forecast period. Currently, the Indian market has around 400 million active Internet users and 350 million connected smartphone users due to rapid Internet growth in rural areas. Similarly, China has around 3.8 billion Internet users. With such increased Internet penetration, the demand for data centres to manage the massive amount of data will be witnessed, fuelling the data centre cooling market revenue. With more capacity and high density of data centres, the need for energy-efficient cooling solutions is being witnessed. The equipment will reduce damages on systems and processors by dissipating excessive heat from the infrastructure. It will also balance temperature and control humidity levels inside data centres.
Technological advancements, rising competition, and the need for environment-friendly and cost-effective solutions for reducing energy consumption is driving the demand for green data centre cooling market. The introduction of Green Data Centre (GDC) provides maximum energy efficiency and minimum environmental impact for storing, managing, and disseminating data. Several companies are investing in green data centres to ensure that cooling, power, and security systems are providing a high-grade environment. For instance, in February 2015, Apple invested around USD 2 billion to construct two new data centres in Europe, which will be powered by renewable energy. The company also announced that data centres in Ireland and Denmark will power their online services for customers across the region.
In 2016, the liquid cooling segment accounted for around 10 per cent of the data centre cooling market and will witness high growth owing to its benefits of reducing the data centre power consumption and Power Usage Effectiveness (PUE). In addition, liquid cooling solutions help in reducing the physical footprint by 75 per cent from air-cooled alternatives. Liquid cooling technology eliminates the need for air conditioning systems, fans, and other specialised facilities. The growth of the liquid cooling segment is largely due to high heat absorption properties of liquids that are far greater than that of the air. The technique is a powerful method compared to air cooling as the water carries over 3,500 times heat than air. To reduce power consumption by cooling equipment, data centre operators are adopting economiser-based data centre liquid cooling, which can reduce cooling energy consumption by 5 per cent and carbon dioxide (CO2) emissions. Companies, such as CoolIT Systems and Stulz GmbH, are investing heavily in the development of this technology.
The IT & telecom sector in data centre cooling market is witnessing digitalisation and penetration of technologies such as big data, AI, and IoT. The need for interconnection and the availability of data from different sites will drive the data centre industry growth. Moreover, the proliferation of smart devices and the rising consumer demand to safeguard information property and financial assets are anticipated to drive the demand for data centres. Majority of IT organisations are moving their workloads to the cloud and are preferring to use enterprise-owned data centres. The European data centre cooling market is anticipated to witness a growth of over 12 per cent CAGR owing to the rising number of data centre constructions in the region, which are necessitating high demand for cooling solutions. Global companies, such as Facebook Inc. and Microsoft Corporation, are investing highly in the construction of data centre facilities in the region. For instance, in May 2019, Google announced investments of over USD 675 million for constructing a new data centre in Hamina, Finland. Additionally, the region is one of the earliest adopters of advanced technologies owing to its stable economic conditions and developed infrastructure. A noticeable trend in the region is the introduction of green data centre initiatives coupled with stringent government regulations for maintaining energy efficiency.