Asia Pacific Data Center Cooling Market size crossed USD 2.5 billion in 2020 and is predicted to expand at a CAGR of 20% from 2021 to 2027.

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The increasing integration of evolving technologies, such as AI, IoT & cloud computing, to improve system efficiency will propel the market demand. The rising utilization of digital solutions for automation & data analytics is increasing data generation across industries. The escalation of data has encouraged several companies to acquire the necessary data center set up to store, maintain & exchange data. With the growing adoption of data centers for multiple applications, the amount of heat dissipation has increased, creating growth opportunities for the data center cooling market.

The COVID-19 outbreak has negatively affected the data center cooling market in Asia Pacific. The pandemic has impacted the supply chain & logistics activities of several industries in the region owing to lockdown measures & social distancing norms. The spread of the virus among co-workers has resulted in the temporary shutdown of facilities, causing revenue loss and a halt in the expansion plans of the companies. This factor has affected the funding of various businesses and delayed technological developments of product offerings. However, with aggressive vaccination drives and relaxation in lockdown measures, companies are regaining their market foothold.

Asia Pacific Market, By Component

The reduction in power consumption in data centers through liquid cooling techniques will drive the Asia Pacific data center cooling market growth. Companies in the industry are focusing on offering advanced liquid cooling set-ups through strategic collaboration to improve the heat dissipation of the processing units without causing loss of power. In November 2021, Schneider Electric partnered with Chilldyne to offer data center efficiency & sustainability solutions. Through this collaboration, the company is planning to provide Chilldyne’s negative pressure liquid cooling technology for data centers across the globe with necessary service & support. This will help Schneider to enhance its control solutions & heat rejection portfolio.

Asia Pacific Market, By Cooling Technique

The growing requirement for high computing solutions will boost the utilization of rack-based cooling technology in the region. With an increase in demand, several companies are building their portfolios to offer a broad set of solutions to customers. For instance, in March 2020, Schneider Electric launched its foremost rack-mounted data center technology, Uniflair. The solution can be combined with EcoStruxure for global visibility of status and performance supported with a 24x7 expert service agency by utilizing advanced data center management software. The solution is designed to cater to customers interested in edge computing & micro data centers.

Asia Pacific Market, By Application

The growing IT & telecom infrastructure will fuel the data center cooling market revenue in Asia Pacific. With an increase in affordable access to smartphones & internet connectivity plans, the IT & telecom sector is developing. According to China’s Ministry of Industry and Information Technology, the telecommunications industry revenue increased by around 8.7% year-on-year between January & June of 2021. In addition, the number of 5G terminal connections at the end of June 2021 amounted to approximately 365 million, an increase of nearly 166 million from the previous year. The rising telecom industry will boost data generation across the nation, creating a demand for data centers.

Competitive Industry Landscape

Some of the leading companies operating in the Asia Pacific data center cooling market include Black Box Corporation, ABB Group, Adaptivcool, Asetek AS, STULZ GmbH, Airedale International Air Conditioning Ltd., CenturyLink, Coolcentric, Interxion, Rittal GmbH & Co., KG, Nortek Air Solutions, LLC, Schneider Electric SE, Vertiv Co., and T-Systems SA.

Industry players are focusing on launching new solutions to improve the efficiency of data centers. In November 2021, Digital Realty announced the plan of launching an innovative bare metal infrastructure service, featuring liquid cooling in collaboration with CoolestDC. Through various trials, it was reported that the direct-to-chip liquid cooling solution saw a decrease in power consumption by around 29%. The company is planning to launch the service at its Digital Loyang 1 (SIN11) facility in Singapore.