Market Trends of Germany Data Center Cooling Industry
IT and Telecom to Hold Significant Share
- The telecommunications industry is looking toward institutionalization to supervise and promote digital transformation, making the process a foundation for developing the digital economy and society.
- Telecommunications in Germany have been facing a significant challenge in recent years: network congestion. With the rise of digital technologies and the increasing demand for high-speed internet, the existing infrastructure needs help to keep up. This is expected to lead to the demand for more data center construction and cooling solutions.
- Germany has been working hard to overcome these challenges. One of the main strategies has been to invest in new infrastructure, such as fiber-optic cables and 5G networks. These technologies offer faster speeds and greater capacity, which can help to alleviate network congestion.
- There are also regulatory and policy measures that can help to address network congestion. For example, the German government has implemented a national broadband strategy that aims to provide high-speed internet access to all citizens by 2025. This includes funding for infrastructure development, such as data centers and initiatives to promote competition among telecommunications providers.
- Deutsche Telekom also aimed to pass an additional 1.2 million premises in Germany in 2021 and hopes to add a further 2.5 million each year by 2024. It aims to have 60% fiber-to-premises (FTTP) coverage on its infrastructure by 2030. Such a factor leads to a major increase in network traffic, leading to major demand for servers along with cooling solutions.
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Liquid Cooling to Hold Significant Growth
- In the ever-evolving landscape of data centers, efficient cooling solutions are crucial to maintain optimal performance and handle the increasing heat loads generated by modern IT equipment. Among the emerging technologies, liquid cooling systems have gained significant traction in recent years.
- Air cooling is just insufficient to sustain the dependability of IT systems in facilities with exceptionally high-density racks (usually over 30 kW), regardless of how new or optimized they may be. Liquid cooling is not an option but rather a must for such facilities (rack power requirements are approaching 20 kW in many facilities, and many companies are aiming to build racks with requirements of 50 kW or more). Facilities such as Cyrusone Frankfurt 5 of Cyrusone and Interxion Frankfurt FRA-17 of Interxion facility are under construction facilities having high rack density.
- By May 2023, a new draft reduced the heat reuse demands, starting at 10 percent heat reuse from 2026 and increasing to 20 percent in 2028. The GDA said these still needed changing, as demand for waste heat is variable, and data centers often cannot be located close to heating networks. The Act is expected to drop a requirement to locate all data centers within five km of a heating network, and data centers will be able to satisfy the requirement by making all new data centers ready to offer waste heat by including a heat transfer station on the site. Overall, this factor will need a major cooling solution, such as water-based cooling, to maintain the equilibrium and stable conditions during the heat generation and transfer process.
- Further, cloud infrastructure enables users to access their files from any geographical location. Around 83% of German companies use cloud services, of which 46% are in their advanced phase of cloud implementation, while 38% are in their beginning phase, and the remaining 16% have no cloud implementation in their facilities. It is expected that with increasing cloud infrastructure, the demand for data centers will increase, leading to water cooling solution demand.
