Kayla Matthews

By: Kayla Matthews on August 27th, 2018

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Market for Data Center Cooling Expected to Hit $8 Billion by 2023

Industry Trends | Data Center Infrastructure | Data Center

Cooling is an essential aspect to consider when building or improving a data center. IT equipment needs electricity to operate, and it generates heat as a waste product while doing so.

If heat does not have an outlet, it builds up in a data center and damages crucial and costly machinery.

That effect contributes to possible data loss and equipment breakdown, or shorter-than-expected usage periods for the machinery.

Data Center Cooling Is a Thriving Market With Projected Future Growth 

Recent market analyses indicate an active and ongoing interest in the data center cooling market. 

Projections from ResearchandMarkets.com suggest it’ll be worth $8 billion by 2023. That estimate represents a six percent combined annual growth rate (CAGR). 

Cooling Center Technologies Even More Lucrative

Moreover, different but related findings from Market Study Report published in December 2017 specifically focus on data center cooling technologies and the market worth associated with them.

The study indicates even more substantial growth related to the technology aspect but looks at the likely increase in value through 2024, not 2023 as the previous research did. It reveals a projected CAGR of 12 percent and a total worth of $20 billion.

Other studies that exist show slightly different projected growth rates for the data center cooling sector. However, the similarity between them is that the increased worth indicated is substantial.

Increased Data Center Construction in Developing Countries 

One of the reasons cited for the uptick in the general data center cooling market is the trend of data centers built in developing countries or regions such as Singapore and Latin America. Analysts believe as data centers start operating in those places, there will be a continual emphasis on running the facilities as efficiently as possible.

That reality naturally spurs the likelihood that data center owners and managers will look for innovative options, thereby increasing the worth of data center cooling technologies, too.

One example of a data center pursuing innovation is the case of a project in Singapore involving Microsoft powering one of its data centers there with solar energy. Hundreds of rooftops across Singapore contain the solar panels, and the tech giant made a 20-year agreement to purchase all the generated power to run its data center.

It represents Singapore’s largest solar deal, and the first time Microsoft made a clean-energy agreement in Asia. If this one succeeds, other data centers and companies may follow suit. Looking to Latin America, Brazil is home to Latin America’s largest modular data center. It opened in November 2017 and is mainly used for the storage of government-related data.

An Exploration of New Data Center Cooling Techniques

One of the recent data center priorities is the focus on investments to boost efficiency. That’s undoubtedly one of the reasons behind the strong projection for the segment associated with data center cooling technologies.

Analysts expect bans enforced by Europe, the Asia-Pacific and North American regions on refrigerants soon. As such, people familiar with cooling centers are interested in options that reduce dependence on coolants or don’t use them at all.

It’s likely future efforts to cool data centers will be both highly streamlined and eco-friendly. Evaporative cooling is one technique that’s effective and doesn’t need refrigerants.

A Data Center That Returns Heat to the Community

 In the Norwegian town of Lyseparken, the goal is for businesses close to a data center to receive heat from the facility.

The data center will be in the middle of a complex with 600,000 square meters of office space and as many as 5,000 homes. Each occupant will have a stake in a local power company and get their electricity from multiple renewable sources. The data center will cater to businesses and government clients, buying solar energy from the power company and selling back the heat it produces.

This example doesn’t relate to cooling directly, but it’s a fascinating glimpse at data center progression and resource usage.

Creative Thought and Large Investments Build Market Worth 

This brief overview examines why the global data center cooling market — and the associated technologies — will likely do so well over the next several years. 

The players in the industry continually devise new and different ways to cool data centers while keeping sustainability in mind. Also, they often spend millions of dollars or more to explore all their options and implement the best ones.

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About Kayla Matthews

Kayla Matthews writes about data centers and big data for several industry publications, including The Data Center Journal, Data Center Frontier and insideBIGDATA. To read more posts from Kayla, you can follower her personal tech blog at ProductivityBytes.com.

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