Data Center Cooling Global Market Report 2024

The data center cooling market size has grown rapidly in recent years. It will grow from $14.66 billion in 2023 to $17.09 billion in 2024 at a compound annual growth rate (CAGR) of 16.6%. The growth observed in the historical period can be attributed to the swift expansion of data centers, the adoption of high-density computing, heightened concerns about energy efficiency, compliance with regulatory standards, the global distribution of data storage, and an increase in the heat load per rack.

The data center cooling market size is expected to see rapid growth in the next few years. It will grow to $31.93 billion in 2028 at a compound annual growth rate (CAGR) of 16.9%. Anticipated growth in the forecast period is expected to be driven by the integration of renewable energy sources, a heightened emphasis on water conservation efforts, the implementation of heat recovery systems, the adoption of modular data center solutions, and the integration of immersive cooling technologies.

Projections from Science Direct indicate that by 2030, data centers might account for 2.13% of the global electricity supply. This underscores the significance of these initiatives in mitigating energy consumption. For instance, in 2021, Microsoft successfully integrated such technology into its Azure data centers. Microsoft's Azure data centers stand out as unique physical structures equipped with specialized power, cooling, and networking infrastructure to house thousands of physical servers. Consequently, the focus on green initiatives and eco-friendly solutions within data centers is a driving force behind the growth observed in the data center cooling market.

The escalating adoption of cloud technology is anticipated to drive growth within the data center cooling market. Cloud adoption involves integrating cloud computing services into existing IT structures among individuals, organizations, or businesses. Effective data center cooling is vital for ensuring seamless operations of cloud services, amplifying performance, reliability, cost efficiency, and sustainability objectives. For example, in December 2021, a survey conducted by O’Reilly Media Inc. revealed that 90% of 2,834 global respondents reported using cloud-based applications within their organizations. Looking ahead, 48% of these respondents are planning to migrate over half of their applications to the cloud within the next year, and 20% aim for a complete transition to cloud-based solutions. Consequently, the burgeoning trend of increased cloud adoption is a driving force behind the growth observed in the data center cooling market.

Prominent players in the data center cooling sector are introducing novel products such as immersion cooling fluids to bolster their market competitiveness and profitability. These specialized fluids are utilized in immersion cooling systems within data centers to absorb and disperse heat produced by electronic hardware, such as servers. In October 2023, ExxonMobil Corporation, a leading US-based natural gas company, unveiled its range of data center immersion cooling fluids. Engineered for optimal energy efficiency and performance, ExxonMobil's fluids offer a diverse selection of synthetic and non-synthetic options with varying thermal capacities. These fluids are tailored to lower viscosity for effective heat dissipation while ensuring compatibility with a wide range of materials, thereby supporting extended equipment lifespan. The utilization of immersion cooling fluids is pivotal for liquid cooling in data centers, aiming to augment energy efficiency, curtail water usage, and boost rack density, consequently claiming to reduce the total cost of ownership for IT equipment by up to 40%.

Prominent entities within the data center cooling sector are introducing innovative solutions such as immersion cooling technology to drive their market profitability. This technology involves submerging crucial IT hardware, including servers and electronic components, in a non-conductive liquid coolant to effectively disperse heat generated during their operation. As an example, in September 2022, Dow Inc., a US-based material science company, unveiled its DOWSIL Immersion Cooling Technology. This data center cooling innovation prioritizes sustainability and efficiency, focusing on straightforward and cost-effective single-phase cooling systems.

In April 2021, Johnson Controls, an Ireland-based company specializing in Fire HVAC Security Equipment and Controls, completed the acquisition of Silent-Aire for $870 million. This strategic move positions Johnson Controls to leverage their extensive global manufacturing and service capabilities alongside Silent-Aire's leading-edge innovation and diverse technology portfolio. Together, they aim to strengthen their commitment to serving hyper-scale providers within the data center vertical, thereby catalyzing growth in this promising sector. Silent-Aire, headquartered in Canada, is renowned for its expertise in crafting mission-critical custom air handlers and modular designs for data centers, excelling in engineering and manufacturing solutions tailored to these specialized needs.

Major companies operating in the data center cooling market report are 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.

Asia-Pacific was the largest region in the data center cooling market in 2023. 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. The countries 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.

The data center cooling market includes revenues earned by entities by providing computer room air handler (CRAH), computer room air conditioner (CRAC), calibrated vector unit, cold aisle and hot aisle design. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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