Asia Pacific Data Center Cooling Market - Industry Outlook & Forecast 2022-2027

Asia Pacific Data Center Cooling Market - Industry Outlook & Forecast 2022-2027

The Asia Pacific data center cooling market is expected to grow at a CAGR of 6.80% during 2022-2027.

MARKET OUTLOOK

Operators are also trying new and innovative methods to ensure that cooling the facility can be done via alternate methods to reduce the PUE of the facilities. Challenges such as increased water consumption and heightened power usage due to higher rack capacity will raise the demand for alternative and efficient cooling systems in the APAC data center cooling market during the forecast period.

The Asia Pacific data center cooling market is driven by the adoption of the 5G technologies advanced technologies such as IoT, big data, AL & ML, and digitalization. The facilities in the region have started adopting liquid immersion cooling technologies. For instance, OneAsia announced to launch first liquid immersion cooling system in its Hong Kong data centers. Further, free cooling techniques will continue to dominate the market for evaporative coolers, free cooling chillers, air-side economizers, and water-side economizers in Japan, Australia, New Zealand, South Korea, and Northern China.

KEY HIGHLIGHTS

• The growth of hyperscale facilities in the region, such as Oracle, Microsoft, Amazon Web Services, Google, IBM, and Tencent, has increased. These hyperscale facilities require efficient and sustainable cooling systems.
• Many modern facilities are built in both high-density and low-density environments. High-density environments can support a rack power density of up to 20 kW and even more through liquid immersion and direct-to-chip cooling.
• Overheating processors, peripherals, or other components can cause system failure and data loss. Therefore, it is necessary to incorporate efficient cooling systems in data centers.
• Regarding adoption, CRAC and CRAH units dominate with a 35% share of the overall market for cooling systems in the APAC data center cooling market.
• Due to the tropical climate in Southeast Asian countries, most facilities are adopting liquid-based cooling technologies. For instance, ST Telemedia Global Data Centres has installed a chilled water plant with cooling towers with the redundancy of N+1 in its Loyang facility.
• Facilities have cooling standards that determine the design, adoption, and operation of the cooling systems and equipment used. ASHRAE provides standards as well as recommendations for the installation of cooling systems.

The Adoption Of Innovative Cooling Systems Will Drive The APAC Data Center Cooling Market

• The district heating concept can also partially apply to South Korea, Japan, parts of China, Australia, and New Zealand. In addition, the Infocommunications Development Authority of Singapore (IDA) started conducting trials to operate facilities at 100°F.
• In January 2022, Highlander signed an agreement to develop a commercial underwater facility in Hainan Island, China, which aims to reduce the cost of cooling and carbon emission.
• In Japan, some data centers use snow to cool the facility; for instance, DataDock uses the snow to cool the servers in the data center facility in Nagaoka.

Growth In Data Centers Targeting PUE Less Than 1.5

• According to a report by Uptime Institute, the APAC region shows a relatively higher PUE of 1.68, which is higher than the global average of 1.59 PUE.
• In APAC, data centers target a PUE level of less than 1.5 by increasing the adoption of automated cooling systems or hybrid solutions that will include free cooling and other cooling systems.
• Huawei Technologies has taken the initiative to adapt the liquid cooling and liquid immersion cooling techniques in the facilities to maintain the Power Usage effectiveness in the data centers.
• NEXTDC operates its facilities in Australia at the PUE levels of between 1.15 - 1.3.

AI Is Being Used In Cooling Systems In Data Centers

• Vendors and operators continuously provide solutions that help automate facility cooling processes.
• In Malaysia, Regal Orion invested in a data center (Shinsei) designed with a data hall that supports Green Data Center’s Submersify’s fluid submersion data center solution.
• As per Green Revolution Cooling, the Total Cost of Ownership (TCO) of a 3.5 MW facility used for AI workloads can be reduced by 40−45% over ten years with liquid immersion cooling.

SEGMENTATION INSIGHTS

• Most countries in the APAC region do not support the use of free cooling systems. Operators in the region are still dependent on air-based cooling techniques. Tier III facilities use N+1 or N+N configuration redundancy of cooling systems. The monotony of CRAC and CRAH units is higher than that of other systems in the Asia Pacific data center cooling market.
• The use of CRAC units is higher among facilities in the APAC region, and most use air-based cooling systems. CRAH units facilitate chilled-water cooling, making them suitable for medium to extensive facilities that use water for cooling purposes. Equinix SH3 facility has the cooling infrastructure of CRAC units and Water-cooled chillers with N+1 redundancy. The APAC data center cooling market by CRAC & CRAC Units was valued at $644.7 million in 2021.
• The Asia Pacific data center cooling market by air-based cooling technique is growing at a CAGR of 7.30% during the forecast period. In recent years, the use of comfort cooling systems in facilities has dropped considerably due to the rising rack power density. Many facilities in the APAC region follow air-based cooling techniques. For instance, 90% of the data centers in India use air-based cooling techniques. Equinix Perth PE1 IBX data center facility is installed with CRAC Units powered by air-cooled chillers.

Segmentation by Cooling Infrastructure

• Cooling Systems
• Other Mechanical Infrastructure

Segmentation by Cooling System

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers
• Condensers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Technique

• Air-based Cooling Technique
• Liquid-Based Cooling Technique
• Water-Based Cooling Technique
• Direct-To-Chip & Liquid Immersion Cooling Technique

Segmentation by Tier Standards

• Tier I & Tier II
• Tier III
• Tier IV

REGIONAL LANDSCAPE

China leads the Asia Pacific data center cooling market and is expected to grow at a CAGR of 5.07% during the forecast period. In China, investments are led by internet, cloud, and telecommunication service providers. Alibaba, China Unicom, China Telecom, Baidu, Tencent, and China Mobile are leading companies in the region. In China, smart cities are also being developed so that regional investments will rise. For instance, Alibaba, a cloud service provider, has developed a smart city in Hangzhou called City Brain. The smart city was designed to improve the economy, environment, and energy consumption and monitor traffic congestion. The use of AI has helped it reduce traffic by 15%. In China, most facilities are designed to cool servers using water-based cooling techniques. The growing construction of facilities will be one factor in developing multiple chillers, cooling towers, and CRAH units.

Segmentation by Geography

• APAC
• China
• Hong Kong
• India
• Japan
• Australia
• New Zealand
• South Korea
• Taiwan
• Rest Of APAC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Thailand
• Philippines
• Vietnam
• Other Southeast Asian Countries

COMPETITIVE ANALYSIS

• These vendors collaborate with operators to provide reliable, innovative cooling solutions. For instance, data center innovative cooling service provider like Nautilus Data Technologies, which provide liquid emersion cooling, makes their presence in the Asia-Pacific data center cooling market by having their presence in the Philippines and Thailand markets.
• Cooling systems vendors offer innovative solutions and tailoring products to reduce the PUE and increase efficiency. For instance, Huawei Technologies launched the iCooling@AI solution powered by AI and big data, which helps reduce the facilities' energy consumption and cuts down the PUE.

Key Vendors

• Airedale by Modine
• Rittal
• Schneider Electric
• STULZ
• Vertiv

Other Prominent Vendors

• 3M
• 4ENERGY
• Airsys
• ALFA LAVAL
• Asetek
• Aermec
• Austin Hughes Electronics
• Black Box Network Services
• Carrier
• Citec International
• ClimateWorx
• Cooler Master Technology
• Condair Group
• Climaveneta Climate Technologies (Mitsubishi Electric)
• Colt International
• CoolIT Systems
• CONTEG
• DAIKIN APPLIED (Daikin Industries)
• DATA AIRE
• Degree Controls (Nova Instruments)
• Delta Group
• ebm-papst
• EcoCooling
• Envicool
• FläktGroup
• FUJITSU
• Fuji Electric
• Green Revolution Cooling (GRC)
• Huawei Technologies
• Iceotope
• Johnson Controls
• Kelvion Holding
• KyotoCooling
• LiquidStack
• Lennox International
• Liquid Cool Solutions
• Legrand
• Motivair
• Munters
• Nortek Air Solutions
• nVent
• Prasa Infocom & Power Solutions (Prasa)
• Quantech (Renovo Zhuhai)
• Shanghai Shenglin M&E Technology
• Siemens
• SPX Cooling Technologies
• Stellar Energy
• Submer
• Swegon Group
• SWEP International
• Systecon
• Trane (Ingersoll Rand)
• Upsite Technologies
• USystems
• Wakefield-Vette

KEY QUESTIONS ANSWERED

1. How big is the APAC data center cooling market?

2. What is the growth rate of the Asia Pacific data center cooling market?

3. Who are the key players in the Asia-Pacific data center cooling market?

4. What is the expected Asia Pacific data center cooling market size by 2027?

5. What are the significant trends in the Asia-Pacific data center cooling market?
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