Asia Pacific Data Center Liquid Cooling Market size crossed USD 500 million in 2021 and is projected to exhibit a CAGR of 25% between 2022 and 2028.
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The demand for data center liquid cooling solutions from cloud service providers is expected to grow owing to the rising need for data centers to fulfill government concerns regarding customer data safety. For instance, data localization requirements from major data center operators to process, store, and analyze data within China's boundaries are mandated by China's Cybersecurity Law. This has prompted cloud service companies to set up data centers in the country to safely process enormous data. In March 2022, Microsoft Azure opened its fifth new data center in China to double the capacity of Microsoft's cloud portfolio for various industry verticals.
The BFSI sector is progressively storing and processing sensitive consumer information, necessitating the need for robust liquid cooling solutions. The increasing use of online transaction activities and digital transfers supports will boost the market growth. For instance, in January 2022, Mastercard collaborated with Wakayama Prefecture to promote digitalization and contactless transaction networks for SMEs in Singapore. Mastercard is supporting the adoption of standard cashless payment solutions including contactless payments using smartphones and IC cards in Singapore. This factor will increase the demand for direct-to-chip cooling systems in data centers to keep a check on the energy consumption levels and provide peak performance for higher power or overclocked processors.
Increasing government initiatives to promote digital healthcare solutions will provide impetus to the data center liquid cooling market, enabling regulated heat transfer in the IT infrastructure. For instance, in February 2022, the Government of India created an open platform to integrate the digital health ecosystem (ABDM) under the Ayushman Bharat Digital Health Mission. The platform comprises digital health provider & facility databases, additional health identities, a permission framework, and unified access to healthcare resources. The demand for data center liquid cooling solutions will further increase as the proper functioning of critical medical devices requires advanced heat management systems and services to ensure that machines do not shut down and operate even in high voltages & temperatures.
Prominent participants operating across the Asia Pacific data center liquid cooling market include The 3M Company, Alfa Laval AB, Asetek A/S, Bitfury Group Limited, Black Box Corporation, DCX The Liquid Cooling Company, Digital Realty Trust, Inc., Green Revolution Cooling (GRC), Inc., IBM Corporation, Mitsubishi Electric Corporation (Mitsubishi Group), Rittal GmbH & Co. KG, Schneider Electric SE, STULZ GmbH, and Vertiv, Co. The Companies are focusing on expanding their footprint by introducing advanced data center liquid cooling solutions that can reduce power consumption while increasing the performance of the IT equipment.