The increasing need to offer systems with high efficiency that do not need high energy consumption will drive the data center cooling market in the next seven years. The energy-efficient data centers are gaining traction in the industry due to the need for efficient cooling systems that utilize renewable sources of energy. There is an inclination toward the adoption of containerized data centers and construction of modular data centers have increased to deliver high efficiency. They also help in reducing the energy consumption and carbon emission levels, thereby fueling the data center cooling market demand. These data centers are anticipated to witness growth in the enterprises because of their effectiveness and their ability to adapt to variations in humidity and temperatures.

Concerns related to the high cost of this equipment and the maintenance required by them might hamper the data center cooling market growth. Factors, such as emission of harmful gases and rising heat energy densities, will also negatively impact the growth. In addition, the reluctance of service providers in the less tech-savvy regions, such as Asia Pacific, to implement advanced technologies is predicted to pose a challenge to the data center cooling market growth.

Fueling Market Growth

Increasing adoption for liquid cooling systems — due to the ability to consume less energy — will fuel the data center cooling market. The rising number of racks installed in the facilities and increasing rack power density have enabled many operators to opt for liquid cooling systems. The maintenance and support services will grow at the highest rate due to the need to execute and manage the infrastructure to ensure reliable and scalable infrastructure. The service also helps in the management of servers, virtualization hypervisors and also look after the on-premise hybrid data center infrastructures.

The colocation application segment is expected to grow at a significant rate in the data center cooling market as it offers more flexibility, which makes it easy to scale up the IT environment and align the business at the same time. It also helps the service providers focus on their core competencies and focus less on the management of the data centers. In addition, it offers cost effectiveness as it reduces the total cost of ownership of the equipment.

The data center cooling market in Asia Pacific is expected to witness significant growth owing to the flourishing financial sector in developing economies, such as India. The rising requirement for cost-effective and energy-efficient solutions to minimize the energy consumption levels will have a positive impact on the industry in the region. Furthermore, the demand for cloud data centers will also augment the demand in the region.

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Publication date: 12/25/17