Hong Kong Data Center Cooling Market Size (2024 - 2029)

The Hong Kong data center cooling market is experiencing growth, driven by the region's hot and humid climate, which necessitates advanced cooling solutions like liquid cooling. The market's expansion is further supported by the anticipated increase in IT load capacity and the construction of additional raised floor areas. Additionally, the proliferation of submarine cable systems is expected to enhance connectivity, contributing to the market's development.

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Market Size of Hong Kong Data Center Cooling Industry

Hong Kong Data Center Cooling Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR 6.20 %
Market Concentration High

Major Players

Hong Kong Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Hong Kong Data Center Cooling Market Analysis

The Hong Kong data center cooling market reached a value of USD 301.1 million in the previous year, and it is further projected to register a CAGR of 6.2% during the forecast period.

  • Summers in Hong Kong are hot, humid, and prone to occasional thunderstorms. Average temperatures range from 28 to 33 degrees Celsius, with high humidity. For a city like Hong Kong, liquid cooling is an inevitable option that should be accepted as an industry standard, especially in the warm island city.
  • The upcoming IT load capacity of the Hong Kong data center market is expected to reach around 1.7K MW by 2029. The country's construction of raised floor area is expected to increase to 6.4 million sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 318.2K units by 2029. Tseung Kwan O is expected to house the maximum number of racks by 2029.
  • There are close to 2 submarine cable systems connecting Hong Kong, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Cable Link ALC, which stretches over 6,000 Kilometers with landing points from Hong Kong.

Hong Kong Data Center Cooling Industry Segmentation

Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.

The Hong Kong data center cooling market is segmented by cooling technology type (air-based cooling, liquid-based cooling, and evaporative cooling) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Cooling Technology
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Hong Kong Data Center Cooling Market Size Summary

The Hong Kong data center cooling market is experiencing significant growth, driven by the increasing demand for efficient cooling solutions to manage the heat generated by high-density IT equipment. The region's hot and humid climate necessitates the adoption of advanced cooling technologies, with liquid cooling systems becoming a standard due to their ability to handle the substantial heat loads. The market is characterized by the presence of major players like Schneider Electric SE, OneAsia Network Limited, and LiquidStack Holding B.V., who are actively expanding their market presence through strategic collaborations and innovative solutions. The introduction of immersion cooling and water-cooled air-conditioning systems highlights the industry's shift towards more energy-efficient and sustainable practices, aligning with Hong Kong's environmental goals.

The demand for data center cooling solutions in Hong Kong is further fueled by the rapid digital transformation and the proliferation of smart devices, driven by high mobile penetration and the rollout of 5G services. The COVID-19 pandemic accelerated the adoption of digital business practices, leading to a surge in data traffic and, consequently, a heightened need for robust cooling systems. The market is also witnessing a shift from traditional air-cooled units to liquid-cooling systems, spurred by the growing use of cloud services and high-density computing applications. As the region continues to expand its digital infrastructure, the data center cooling market is poised for sustained growth, supported by innovative technologies and strategic industry partnerships.

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Hong Kong Data Center Cooling Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Volume of Digital Data and Fiber Deployment

      2. 1.2.2 Emergence of Green Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Adaptability Requirements and Power Outages

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Cooling Technology

      1. 2.1.1 Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

      3. 2.1.3 Evaporative Cooling

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Hong Kong Data Center Cooling Market Size FAQs

The Hong Kong Data Center Cooling Market is projected to register a CAGR of 6.20% during the forecast period (2024-2030)

Schneider Electric SE, OneAsia Network Limited, LiquidStack Holding B.V, Newtech Group and AIREDALE INTERNATIONAL AIR CONDITIONING LTD. are the major companies operating in the Hong Kong Data Center Cooling Market.

Hong Kong Data Center Cooling Market Report Snapshots

Hong Kong Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)