Market Trends of Data Center Cooling Industry
The IT and Telecom Segment is Expected to Witness the Highest Growth
- The exponential growth of data generated by information technology significantly necessitates efficient data centers, driving demand for advanced cooling solutions. As data centers expand to accommodate increasing workloads and storage demands, the heat generated becomes a significant matter of concern, creating demand for effective cooling solutions.
- The adoption of cloud storage has been increasing over the years. To provide more efficient work processes, cloud storage providers such as Microsoft, AWS, and Google are expanding their capacity to store in the cloud. These companies make their investments in hyperscale transactions. As a result, the demand for data center cooling systems is expected to grow due to the expansion of Software-as-a-Service, enabling cloud storage providers to augment their capacity.
- Immersion cooling can be executed in a single-phase or two-phase solution. Single-phase immersion cooling encapsulates the server in a sealed chassis, and the design can be configured in a rackmount or standalone format. However, two-phase immersion cooling locations the server in the liquid, but the liquid transitions during the cooling process. As the fluid warms up and turns to condensation, the water circuit and heat exchanger withdraw the heat. In 2P immersion cooling, dielectric cooling fluid inside a metal holding tank contained with servers is boiled and condensed in a secured cooling system, exponentially growing heat transfer efficiency.
- In May 2023, KT Cloud signed a deal with Immersion 4, a Swiss provider of liquid cooling solutions, to install next-generation immersion cooling technology at KT Cloud data centers. Immersion cooling removes heat by immersing information and communications technology equipment in a dielectric solution where electricity does not flow. This eliminates the imbalance in server room temperatures and fan noise at data centers that can occur with an air-cooling system.
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Asia-Pacific is Expected to Register Significant Growth
- Asia-Pacific is estimated to witness the fastest growth rate during the forecast period, mainly due to the rapid development of the network infrastructure. The demand for data generation is increasing in the region, and government policies are promoting more energy-efficient infrastructure, especially in countries like India and China. Also, advancements in technologies such as AI-driven cooling management and liquid cooling systems are reshaping the landscape, driving further adoption in the region.
- China and Japan are among the most important countries that are expected to fuel the market's growth opportunities, significantly based on their ongoing innovations and developments in domains like IoT, ML, and AI. Moreover, the rapidly growing number of data centers in these countries and the government policies to promote more environmentally sound infrastructure across the region are driving the need for better and more effective cooling solutions within these data centers.
- For instance, in April 2024, GDS, an operator and developer of high-performance data centers in Asia, and Gaw Capital Partners, a private equity fund management firm especially focusing on the real estate markets in Asia-Pacific and other high barrier-to-entry markets worldwide, signed a strategic partnership to build a 40 megawatts (MW) data center campus in Tokyo, Japan.
- The Asia-Pacific data center cooling market is primarily fueled by the exponential growth of data consumption and cloud services. As businesses expand their digital infrastructure, the demand for efficient cooling systems to maintain optimal operating temperatures increases. Additionally, stringent regulations regarding energy efficiency and environmental sustainability encourage the adoption of innovative cooling technologies. With emerging economies investing heavily in IT infrastructure, the need for reliable and scalable cooling solutions further fuels market growth.
- In December 2023, the Australian cloud service provider ResetData launched a test and simulation lab for its pioneering liquid-cooled data center server technology. This was one of the first facilities in Asia-Pacific capable of trialing workloads in a liquid-cooled environment. This step empowered local businesses to utilize a more ecological and high-performance Infrastructure-as-a-Service (IaaS) that is essential for strenuous applications like AI and machine learning.
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