Data Center Cooling Market Outlook, Trends, Analysis 2031

The global data center cooling market is expected to reach US$ 45.49 Bn by the end of 2031

Data center cooling system is a collection of tools, techniques, and processes to ensure ideal levels of temperature and humidity are maintained in data center premises. The data center cooling system comprises a combination of hardware, software, and services that serve the function.

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Data center cooling systems maintain an ideal operating environment for all information technology equipment (ITE) by removing the heat generated through some heat sinks. If not maintained, data center operators may face malfunctioning ITE, resulting in downtime and consequent financial losses. Since data centers are reported to be highly energy intensive and may increase their energy consumption owing to rise in number of chips deployed in a cabinet, leading to a lot more heat generation. Rise in energy consumption and increase in demand for data across industry verticals that highly rely on insights and data to run their business-critical applications cannot afford downtime of data center. Therefore, demand for data center liquid cooling systems such as direct-to-chip, rear-door heat exchangers, and immersion cooling is significantly high.

Data centers are major energy consumers, as they need more power to operate servers and other IT equipment. They provide a large amount of computing and data storage capabilities that utilize IT resources such as processors, networking, and storage, which generate heat. Data center operators require robust cooling systems, such as server rack cooling that prevent IT infrastructure from overheating and failure, which may lead to downtime and financial losses.

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Demand for digital services is rising due to increase in adoption of advanced technologies such as 5G, AI, edge computing, automation, and IoT along with the development of digital infrastructure, especially in developing economies. Consequently, the amount of data that needs to be processed and stored is increasing. Demand for data centers with reduced energy consumption and increased processing and computing efficiencies is rising at a rapid pace to tackle the issue of GHG emissions.

Increase in design complexities in computing equipment is also driving the implementation of cooling systems. Modern and advanced servers and computing equipment generate more heat, as they consume more power to process and compute a larger amount of data. Total power consumption by data centers increased from 205 TWh in 2018 to 300-440 TWh in 2020. Energy consumption of data centers doubled in two years during the same period. All these factors are projected to drive the demand for energy-efficient data centers.

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Development of Sustainable Cooling Technologies Fueling Demand for Data Center Cooling Solutions

Increase in energy consumption is one of the major concerns faced by data center operators across the globe. A major portion of energy consumed is contributed by data center cooling. Rise in demand for new generation processors and applications for the smooth implementation and utilization of various technologies, such as artificial intelligence, machine learning, and analytics programs, is expected to further increase energy consumption. New generation processors consume significant amount of energy and generate heat, which needs to be properly managed in order to keep them running. They might stop working in case they exceed their heat limits. Global e-Sustainability Initiative (GESI), a technology community working on ICT sustainability, stated in its report 'SMARTer2030' that data centers consume over 1% of total electricity consumption globally and account for about 0.5% of total CO2 emissions.

Data centers are adopting advanced cooling technologies, such as geothermal cooling, evaporative cooling, solar cooling, and KyotoCooling (an advanced free cooling method in which a thermal wheel is used to control hot and cold air flows), to reduce electricity consumption and greenhouse gas (GHG) emissions. Data center liquid cooling systems are highly popular, as geothermal cooling is a low-cost and environment-friendly cooling technology. It uses heat pumps and a closed-loop piping system filled with water or a coolant liquid. The coolant liquid flows through underground vertical wells filled with heat-transferring liquid.

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Geothermal heat pumps consume 25% to 50% less electricity as compared to traditional cooling systems. Evaporative cooling or swamp cooling systems utilize falling temperature when the water transforms from liquid to a gaseous state, absorbing surrounding heat. Additionally, stringent government policies in terms of environmental sustainability have forced data center operators to comply and reduce their carbon footprints. This is attracting data center operators to adopt these environment-friendly cooling mechanisms.

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