Market Trends of China Data Center Cooling Industry
This section covers the major market trends shaping the China Data Center Cooling Market according to our research experts:
Telecommunication Sector is Expected to Drive the Market Growth
- The demand for data centers in the country is growing at an accelerated pace, and to keep these facilities constantly operational is essential. The telecom sector is driving the demand for data centers to deliver content, mobile, and cloud services. In this phase, interconnecting data centers and WAN connectivity are paramount network requirements that create high storage resources with high-energy consumption, for which the requirement of cooling data center is essential.
- Thermal loads inside telecom facilities and electronic enclosures must be managed efficiently. Liquid cooling is a powerful alternative to ambient air cooling, as water can carry about 3,500 times more heat than air. Economizer-based data center liquid cooling with advanced metal interfaces reduces cooling energy to 5% of the total data center energy, which saves energy and reduces carbon dioxide (CO2) emissions.
- Since the advent of the internet, telecommunication has been one of the major driving forces behind the global development and value creation. Recently, there were many changes occurring in the telecom industry that are attributed to the advancement in technology. High rates of growth are being forecasted for this rapidly growing market. Telecom companies and virtually all businesses that access telecom networks are expected to feel both the immediate as well as far-reaching impacts, because of these major trends that are currently being circulated in the telecom sector.
- In order to optimize their networks and the digital services that are running on them, the telecom providers will need more compute and storage capacity in the future to be deployed across the carrier networks. Additionally, the rapidly increasing 4G penetration and the upcoming 5G wave are further motivating telecom vendors to invest in the data center market for more network functionality and a much higher ability to manage networks around the edges.
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Emergence of Sustainable Data Centers to Drive the Market Growth
- According to the report on Energy Consumption of Data Centers in China, the current numbers of small and medium-sized data centers in China are over 0.4 million and the annual total power demand accounted for 100 billion kWh. Coupling with rising trend of data localization, the country may further promote the development of hyperscale data centers.
- All these factors are forcing the data center service providers to either develop energy-efficient data centers, adopt the advanced cooling solution, or utilize renewable energy solutions. All these scenarios may directly boost the demand in the market studied. For instance, Tencent plans to build a data center in the hills of Guizhou that may tap the external cold air for cooling and utilize the ample supply of hydropower in the region.
- In the recent past, USGBC signed a strategic agreement with the China Software Testing Center, to promote the sustainable development of China's data centers. It also organized the LEED DC Working Group. After that, Delta Wujiang Data Center became the world’s first data center to certify using LEED v4 ID+C: Commercial Interiors.
- The government is also taking significant steps toward the development of more energy-efficient data centers. For instance, in past, the Pilot Projects of Green Data Centers (GPPGDC) were released to encourage sustainability in China's data center industry, which included a pilot of 100 leading green data centers.
