Data centre cooling market size to hit $21.51bn by 2028

Author: Carly Weller

Brandessence Market Research has published a new report titled, Global Data Centre Cooling Market Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2028.

The report says that the growing need for optimising infrastructure budgets to achieve business goals will drive the growth of the data centre cooling market. The market was valued at $10.42bn in 2021 and is expected to reach $21.51bn by 2028, with a CAGR of 10.9% over the forecast period.

Data centre operators use cooling solutions to maintain the temperature in data centres at a level that is within permissible limits. Data centres have to work in an efficient manner all day long to process a lot of data. In terms of data processing, the equipment does the job of dissipating heat energy and this generates a major need for cooling in order to prevent damage which may happen to equipment by overheating.

There are two kinds of systems – one is water-based and the other is air-based. Air-based cooling circulates the air in the data centre to maintain the cooling. In water-based cooling, the water is used and is further segmented into immersion cooling along with the water-cooled racks, where the flow of the liquids is across the hot components for maintaining temperature.

The telecoms and IT segments are dominant in the global data centre cooling market because of the rise in the levels of penetration and digitalisation of these technologies, such as the cloud and big data. The technologies pose a major demand for the storage of data and its availability. These enterprises are demanding storage that is better, along with better IT facilities and connectivity for catering to these demands in an efficient manner. Furthermore, the proliferation of smart devices and consumer demands for the safeguarding of information and financials has been expected to propel the demand for cooling equipment. The industries have been adopting solutions that are highly efficient as well as beneficial in terms of cost-efficiency.

There has been an increase in the number of data centres, and the use of the latest technology has increased. With the increasing number of data centres, there is a demand for data centre cooling solutions. This is expected to boost the growth of the global data centre cooling market. The data centre cooling market is expected to reach unprecedented levels in this period of forecast. Room-based cooling was the largest in the data centre cooling market in terms of market share, and this is because of its effective cooling which is achieved at a lower cost. This has been estimated to maintain a larger market share because of the ducts and pipes in comparison to the other types of cooling.

Air-based cooling and air conditioners maintain the temperature to permissible limits. The cooling which is room-based has been gaining mileage because of its cooling in an energy-efficient manner.

In terms of regions, North America had been dominating the market size overall because of the advantages it has in terms of the advancements in technology and the recent developments that pertain to this market. Furthermore, companies have been focusing on the implementation of environmentally friendly and cost-effective cooling, which has fuelled the growth of the market. The region of Asia Pacific has been expected to see a good amount of growth because of the penetration of technology in its population.