Global data center cooling market seen soaring past $44B by 2027

Dec. 28, 2022
A new study from BIS Research reveals the global data cooling center market was valued at $17.82 billion in 2021 -- and is projected to balloon to $44.52 billion by 2027.

BIS Research, the global leader in providing market intelligence on deep technologies, has released its latest study, entitled, Data Center Cooling Market - A Global and Regional Analysis.

According to this study, the global data center cooling market was valued at $17.82 billion in 2021 -- and is projected to balloon to $44.52 billion by 2027.

As noted by Debraj Chakraborty, principal analyst with BIS Research:

"With the emerging data center cooling technologies, there are opportunities to emphasize retrofitting data centers. Data center infrastructure management (DCIM) can be facilitated with the help of better and more efficient cooling techniques. Moreover, innovative data center cooling systems will augment the number of edge data centers."

The research finds a mix of factors responsible for the surging increase in demand for data center cooling technology, including:

  • Highly efficient cooling systems.
  • Increasing number of data centers and spending.
  • Thermal energy recovery conversion from data centers.
  • Water usage effectiveness driving adoption of alternate cooling solutions.
  • Retrofitting to a free cooling data center.

As explained by the report's executive summary:

High-performance workloads will continue to require more power per rack, which will, in turn, require more power and cooling. However, with the right cooling technology, businesses can save space in their data centers and lower their energy costs.

IT and telecom leading end-user industries

The end-user segment for the data center cooling market is classified by BIS Research into IT and telecom, banking, financial services, and insurance (BFSI), government and public sector, manufacturing, healthcare, retail, and others.

According to the new report, the IT and telecom segment led the data center cooling market in 2021, with the trend is expected to continue during the forecast period of 2021-2027.

The forecast notes that, with the introduction of new technologies such as 5G, IoT, virtual and augmented reality, and artificial intelligence, the telecommunications industry is evolving to cater to huge data processing needs. As a result, telecom data centers are also transforming to handle high data volume and low latency needs.

BIS Research said the companies profiled in the report have been selected based on input gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.

Some of the established names in the market, as noted by the report, are ALFA LAVAL, Asetek, Inc., Black Box, Condair Group, Coolit Systems, Danfoss, Delta Power Solutions, EVAPCO, Inc., FUJITSU, Modine Manufacturing Company, Munters, Nortek Air Solutions, LLC, Rittal GmbH & Co. KG, Schneider Electric, STULZ GMBH, Submer, Trane, and Vertiv Group Corp.

Global data center cooling market recent developments according to BIS Research include the following data points:

  • In September 2022, one of the most research-intensive universities in Europe, University College Dublin, received data center cooling infrastructure from Schneider Electric. The information technology (IT) infrastructure at universities can benefit from the scalable, effective, and resilient cooling provided by Schneider Electric's Uniflair In-Row Direct Expansion (DX) cooling solution.
  • In May 2022, the first commercial colocation provider in Asia, Digital Edge (Singapore) Holdings Pte Ltd., utilized StatePoint liquid cooling technology from Nortek Air Solutions, LLC, in its brand-new data center, NARRA1. To create the most energy and water-efficient data center in the nation, Digital Edge will utilize the sustainable cooling solution from Nortek Air Solutions, LLC
  • In April 2022, as part of a restructuring program to realign its manufacturing operations, increase profitability, and boost global competitiveness, MODINE MANUFACTURING COMPANY announced the intended closure of three North American plants producing cooling packages, charge-air coolers, and oil coolers.
  • In January 2022, Munters acquired EDPAC, an Irish company that makes air handling and cooling systems for data centers. Through the acquisition, Munters, a pioneer in energy-efficient data center cooling solutions in North America, expanded into Europe.

The detailed study from BIS Research is a compilation of 243 market data tables and 50 figures spread through 311 pages.

View a detailed table of contents here.

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