Data Center Cooling Market Trends

Growth Drivers

• Growing Energy Consumption in Data Centers - Several of the largest data centers in the world could store tens of thousands of IT devices apiece and need more than 99 megawatts (MW) of power capacity, which is equivalent to powering about 79,999 U.S. homes. Hence, with the use of data center cooling the consumption of energy is estimated to be reduced.
• Rise in Use of Internet - About 4 billion people used the Internet as of January 2023, representing approximately 63 percent of the world’s population. Increasing internet penetration is giving rise to data production as a result driving the growth of the data center cooling market in the projected time period.
• Surge in Storage Capacity of Data - Only about 3% of the data generated and consumed in 2020 was preserved across the globe and held until 2021, indicating that just a small portion of this freshly created data is kept. The installed base of storage capacity is anticipated to grow, expanding at a yearly average rate of approximately 18% over the projected period from 2020 to 2025, following the significant expansion of the data volume.

Challenges

• Inefficiency of Traditional Air-Cooling Method - Given their enormous power usage, data centers confront a significant challenge in reducing carbon emissions. The cooling technologies employed in data centers are one of the main causes of carbon emissions. For instance, the traditional air-cooling approach utilized in data centers produces a sizable quantity of carbon emissions. Therefore, one of the main difficulties for companies that provide cooling systems for data centers is to develop technologies or coolants that could improve cooling impact while also lowering carbon emissions and PUES. Manufacturers of data center cooling face difficulties as a result of these elements, and it is anticipated to hamper the market's growth.
• High Cost of Data Center Cooling
• High Initial Investment Required