Data Center Cooling Market Strategies: Navigating Regulatory Changes

Data Center Cooling Industry Overview

The global data center cooling market size was estimated at USD 18.65 billion in 2023 and is expected to grow at a compounded annual growth rate (CAGR) of 16.8% from 2024 to 2030. The increasing demand for energy-efficient data centers is anticipated to create lucrative growth opportunities for the market. Several key companies are preparing for the expansions. Moreover, the favorable growth prospects can be attributed to the rapid increase in data generation and the subsequent rise in the demand for data centers across the globe. Data centers consume a large amount of power, which generates a massive amount of heat, which creates the need for efficient cooling equipment.

Gather more insights about the market drivers, restrains and growth of the Data Center Cooling Market

Furthermore, the growing popularity of OTT platforms and streaming services has led to a remarkable increase in data volumes; which is projected to fuel the demand. The rapid growth experienced by cloud services, the growing prominence of big data, and improved penetration of connected devices are encouraging organizations to increase their investments in building new data center facilities. All these factors are anticipated to boost the demand for data center cooling systems. This demand is directly proportional to an increase in the number of data center facilities globally. The increased spending on IT infrastructure after the pandemic is creating avenues for the expansion of new and existing data center facilities across the world. Moreover, software-based data centers are also contributing to market growth by offering an enhanced level of automation.

A shift toward digital transformation amidst the pandemic further prompted the need for building data center facilities that can provide scalability, security, and flexibility. Therefore, as investments in new data center facilities witness an increase, the demand for the data center cooling industry witnesses a favorable outlook. However, the need for specialized infrastructure and high investment costs for arranging and maintaining these data center solutions are anticipated to hinder industry growth. Furthermore, cooling issues during incidences, such as power outages, and reduced carbon emissions are projected to pose challenges to the industry. The pandemic had a major impact on this market. The lack of employees and limited investment costs disturbed data center cooling technology production & sales.

Key companies & governments adopted new safety measures to develop and improve the practices. However, as technology advanced, the industry’s sales rate improved as it targeted the right audience. Data centers are a hotspot of all critical IT infrastructures across several verticals including manufacturing, BFSI, retail, and healthcare. The need to manage huge volumes of data while offering networking capabilities is the key reason driving data center investments in these verticals. Data centers emit a high amount of heat and hence require cooling solutions to keep the system working without any outages or other dysfunctions. Thus, data center cooling solutions are of paramount significance to any data center facility.

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• The U.S. excavator market size was estimated at USD 10.10 billion in 2023 and is expected to grow at a CAGR of 3.2% from 2024 to 2030. The demand for excavators is likely to grow due to increased investments in the construction sector.

Data Center Cooling Market Segmentation

Grand View Research has segmented the global data center cooling market based on component, solution, services, type, containment, structure, application, and region:

Data Center Cooling Component Outlook (Revenue, USD Billion, 2018 – 2030)
• Solution
• Services

Data Center Cooling Solution Outlook (Revenue, USD Billion, 2018 – 2030)
• Air Conditioners
• Precision Air Conditioners
• Chillers
• Air Handling Units
• Others

Data Center Cooling Services Outlook (Revenue, USD Billion, 2018 – 2030)
• Installation & Deployment
• Support & Consulting
• Maintenance Services

Data Center Cooling Type Outlook (Revenue, USD Billion, 2018 – 2030)
• Raised Floors
• Non-Raised Floors

Data Center Cooling Containment Outlook (Revenue, USD Billion, 2018 – 2030)
• Raised Floor with Containment
o Hot Aisle Containment (HAC)
o Cold Aisle Containment (CAC)
• Raised Floor without Containment

Data Center Cooling Structure Outlook (Revenue, USD Billion, 2018 – 2030)
• Rack-based Cooling
• Row-based Cooling
• Room-based Cooling

Data Center Cooling Application Outlook (Revenue, USD Billion, 2018 – 2030)
• Telecom
• IT
• Retail
• Healthcare
• BFSI
• Energy
• Others

Data Center Cooling Regional Outlook (Revenue, USD Billion, 2018 – 2030)
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
• Asia Pacific
o India
o China
o Japan
o South Korea
o Australia
• Latin America
o Brazil
o Mexico
• Middle East & Africa (MEA)
o UAE
o Saudi Arabia
o South Africa

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Key Companies profiled:
• Air Enterprises
• Asetek, Inc.
• Climaveneta
• Coolcentric
• Dell Technologies Inc.
• Fujitsu
• Hitachi, Ltd.
• Johnson Controls
• Mitsubishi Electric Corporation
• Nortek Air Solutions, LLC
• NTT Limited
• Rittal GmBH & Co. KG
• Schneider Electric SE
• STULZ GMBH
• Telx Inc.

Key Data Center Cooling Company Insights

• Schneider Electric offers automation management electricity distribution solutions. The company also manufactures components for energy management systems. It operates through two primary business segments, namely Energy Management and Industrial Automation.The Energy Management segment is further divided into medium voltage, low voltage, and secure power subsegments. The secure power subsegment offers products and solutions for hospitals, data centers, and homes & buildings. The data center cooling market belongs to the secure power subsegment

• Vertiv Group Corp. provides critical infrastructure that caters to vital applications for three primary end markets, namely communication networks, data centers, and commercial and industrial facilities. These end markets are operated through various brands, namely Liebert, NetSure, Geist, and Avocent. The data center market has been further categorized into cloud/hyper-scale, Colocation, Enterprise, and Edge. Vertiv has three principal offerings, namely critical infrastructure and solutions, IT and edge infrastructure, and service and solution

• Rittal Gmbh & Co. K.G. supplies power distribution, enclosures, climate control, IT infrastructure, and other software & service solutions. The company operates as a part of the Friedhelm Loh Group. The company’s sister companies include Cideon, German Edge Cloud (GEC), EPLAN, Stahlo, LKH, and iNNOVO Cloud

• STULZ GMBH is one of the leading manufacturers and solution providers of cooling and humidity management technology for mission-critical applications. It offers air conditioning solutions for data centers, low-load applications, homes, IT rooms, chilled water production centers, shelters, free cooling spaces, air handling and chiller units, and shelter cooling products. The company offers its air-cooling products to the data center, telecom, medical, and industrial cooling sectors. It also develops customized in-house energy management systems and solutions to monitor energy consumption

Recent Developments

• In October 2023, Schneider Electric announced that it is investing USD 1.2 million to collaborate with the Sustainable Tropical Data Centre Testbed (STDCT), a facility housed at the National University of Singapore (NUS); funded by the National Research Foundation, Singapore; and backed by a group of business partners. Given that maintaining regulated settings in data centers in tropical nations, such as Singapore, usually leads to excessive power and energy usage and the subsequent high costs and carbon emissions, the testbed envisages developing innovative, cost-effective cooling systems enabling data centers in tropical regions to function at peak efficiency

• In May 2023, Vertiv Group Corp. announced the launch of Liebert PKDX, a single, direct expansion thermal management unit for data centers. The units consist of rack sensors, intelligent controls, and central optimizing system control to facilitate the optimization of data center heat management. India now has access to the Liebert PKDX. With its plug-and-play design, the Liebert PKDX unit is incredibly quick to install, uses zero water, and does not require any white space in the data hall

• Rittal GmBH & Co. KG and STULZ GMBH entered into a global partnership in 2021 and have now begun following the partnership in the U.S.A. Consequently, the two recognized leaders will possess enhanced capabilities to provide clients with comprehensive, customized solutions. Rittal’s extensive range of IT infrastructure will profit from Stulz’s portfolio of high-end IT and precision cooling systems

• In February 2023, Green Revolution Cooling, Inc. announced that SK Enmove, a lubricants company based in South Korea, joined its ElectroSafe Fluid Partner Program, thereby making SK Enmove’s patented immersion cooling fluids available to its data center clients worldwide. The two companies would also be working together to develop, innovate, and enhance novel fluid compositions