LONDON — The global data center precision air conditioning market is expected to record a compound annual growth rate (CAGR) of more than 10 percent to 2020, according to the latest market research report by Technavio.

“Data center construction is a major driver for the precision air conditioning market. Owing to the increased adoption of advanced technologies for operational needs, enterprises are prompted to expand their data center footprint worldwide. The main contributors to the growing data center construction include CSPs [communications service providers], telecommunications organizations, and colocation service providers,” said Rakesh Panda, one of Technavio’s lead industry analysts.

“Comfort cooling used in data centers is found to be ineffective with increased heat density at the rack level. Also, concerns over high power consumption have led to the increased adoption of precision air conditioners. Data center operators are expected to adopt a variety of advanced cooling techniques that are cost efficient and consume less power over the forecast period,” added Rakesh.

The data center precision air conditioning market in the Americas was valued at $440 million in 2015. The Americas is the leading region in terms of the number of operational data center facilities. Precision cooling systems will be installed by data centers being built as well as those expected to be renovated during the forecast period.

In the U.S., data centers account for approximately 2 percent of nationwide electricity consumption. Therefore, there is a high demand for energy efficient cooling solutions.

Europe, the Middle East, and Africa (EMEA) is the second-largest market for data center precision air conditioning and was valued at $255.2 million in 2015. In the EMEA, Europe is the most mature market in terms of the number of established data center facilities and the ones that are expected to get renovated.

Many organizations in the EMEA, including small and medium-sized enterprises (SMEs), are expected to move their businesses to the cloud. Therefore, there will be a significant increase in the number of new data center facilities in the region.

Asia-Pacific (APAC) is among the fastest growing regions in terms of the construction of new data center facilities. Most of the countries in this region do not experience cold climatic conditions. Therefore, the demand for data center cooling solutions is higher in this region compared to others.

More information is available here.

Publication date: 7/21/2016

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