Market Trends of Data Center Liquid Cooling Industry
Edge Computing to Witness Significant Growth
- In the forecast period, organizations are expected to witness rapid growth in the number of IP-connected mobile and machine-to-machine (M2M) devices, which will handle significant amounts of IP traffic.
- The demand is expected to rise for faster Wi-Fi service and application delivery from online providers. Also, some M2M devices, such as autonomous vehicles, will require real-time communications with local processing resources to guarantee safety.
- The deployment of edge data centers benefits many new technologies, including fifth-generation (5G) networks and the Internet of Things (IoT), as the adoption of (IoT) connections is expected to more than double, with the number of wide-area IoT 6 billion by 2028. and Industrial Internet of Things (IIoT) of devices, autonomous vehicles, virtual and augmented reality, artificial intelligence and machine learning, data analytics, and video streaming and surveillance.
- Moreover, the emergence of 5G wireless infrastructure has urged data center operators to opt for edge computing infrastructure to work with networks offering lower latency and higher resiliency. Multi-access edge computing (MEC) aids network services in connecting to users closely. Hence, the demand for efficient edge data centers is expected to be augmented by many factors, including the introduction of 5G technology across the world and the growing trend of autonomous or self-driving vehicles and smart cities.
- However, a key requirement of large-scale edge computing roll-outs will be low operating costs. In edge deployments, immersive liquid cooling is known to provide dramatic energy-saving benefits.
- The reliability and no-touch features of liquid cooling solutions will match the need for extended mean time to maintenance and longer intervention intervals needed for viable operation and management of remotely located equipment.
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North America to Hold the Largest Market Share
- North America is an early adopter of newer technologies. The data center investors are increasingly investing in liquid immersion and direct-to-chip cooling solutions. The importance of edge data centers has been aided by the emergence of 5G networks worldwide, and the United States is among the earliest adopters of the technology. Many operators in the United States, such as EdgePresence, EdgeMicro, and American Towers, have started investing in these centers.
- The mobile data traffic in the United States increased considerably over the years, from 1.26 exabytes per month of data traffic in 2017 to 7.75 exabytes per month of data traffic by 2022, as reported by Cisco Systems. Ericsson says this data traffic is expected to triple further by 2030. Thus, the distributed cloud that may secure the low latency and high bandwidth required to connect such scale easily is coming into action.
- The United States is witnessing massive growth in internet usage by people and businesses. The country is the largest market in data center operations, and it continues to grow due to the higher consumption of data by end-users. The growing popularity of the Internet of Things (IoT) is a significant driver for the US hyper-scale data center market, leading to additional facilities that can support exabytes of data generated by both business users and consumers.
- The United States will be the fastest-growing data center market in the region in the coming years. The significant drivers of data center construction in the United States. have been recent economic incentives and tax benefits. Approximately 27 states leverage these factors to attract data center projects. In addition, the heavy tax breaks implemented in the United States indicate a government-front aim to construct new mega data centers or renovate existing ones. Such instances in the market create more of a need for data center liquid cooling services in the region.
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