APAC Data Center Cooling Market Size (2024 - 2029)

APAC Data Center Cooling Market Analysis

The APAC Data Center Cooling Market size is estimated at USD 2.65 billion in 2024, and is expected to reach USD 3.79 billion by 2029, growing at a CAGR of 7.40% during the forecast period (2024-2029).

Due to the surge in Internet usage and the number of data centers due to enormous computational requirements by artificial intelligence (AI) and media applications in Asia-Pacific (APAC), the data center cooling market has had massive growth.

• According to the International Energy Agency (IEA), the need for digital services is continuously increasing. Since 2010, the global population of internet users has nearly doubled, while global web traffic has increased 20-fold. On the other hand, significant advances in energy efficiency have helped to restrain the increase in energy demand from data centers and data transmission systems, each contributing to 1-1.5% of worldwide power use. Substantial government and business efforts on energy efficiency, research and development, and decarbonizing power supply and supply chains are required to cut energy demand and emissions significantly over the next decade to meet the Net Zero by 2050 Scenario.

• Development in IT Infrastructure in emerging countries of APAC is propelling the market. The data center energy demand increased from 66 TWh in 2019 to 72 TWh in 2022 in Asia, according to IEA data released in October 2022.

• Companies in the APAC region are trying to tackle this issue by setting up Green data centers that use Free air cooling systems instead of traditional Air conditioners. The increasing trends toward deploying green data centers for managing, storing, and distributing information have helped many software businesses decrease energy consumption and total energy costs.

• However, adaptability demands and power outages in Asia-Pacific are a challenge to the growth of the market. A typical data center cooling system must be pre-engineered, standardized, and modular. It is expected to be flexible and scalable to match the data center's requirements in the region. This is challenging today, with firms looking to lower costs and not spend much on high-end customized cooling systems.

• The players in the market are collaborating with cooling fluids providers to provide better products to their customers. For instance, in August 2023, Singapore's SK Enmove partnered with Dell and immersion cooling expert GRC to provide cooling fluids. The lubrication company is moving into immersion cooling. It will provide dielectric coolants to fill GRC's tubs, which will hold the Dell kit and be supplied and supported by the server maker. SK Enmove will develop specialized cooling fluids based on its high-quality lube base oil, while Dell and GRC will produce server designs and tubs designed for immersion cooling.

APAC Data Center Cooling Industry Segmentation

Datacenter cooling refers to the collective equipment, tools, techniques, and processes that ensure an ideal operating temperature within a data center facility. With increasing capacity and higher density, there is an increasing need for energy-efficient cooling of IT equipment. Furthermore, benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly in various applications.

The Asia-Pacific data center cooling market is segmented by cooling technology (air-based cooling (CRAH, chiller and economizer, cooling tower (covers direct, indirect & two-stage cooling), others)), liquid-based cooling (immersion cooling, direct-to-chip cooling, rear-door heat exchanger), by end-user vertical (IT & telecom, retail & consumer goods, healthcare, media & entertainment, federal & institutional agencies, and other end-users), and by geography (China, India, Japan, Australia, New Zealand, Singapore, South Korea, Malaysia, Indonesia, Philippines, Taiwan, Hong Kong, Thailand, Vietnam, and the Rest of Asia-Pacific). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.