Philippines Data Center Cooling Market Size (2024 - 2029)

The Philippines Data Center Cooling Market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium enterprises, government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the anticipated increase in IT load capacity and the construction of additional raised floor areas. The market's growth trajectory is further supported by the strategic location of the Philippines, with numerous submarine cable systems enhancing connectivity.

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Market Size of Philippines Data Center Cooling Industry

Philippines 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 (2024 - 2030) 14.90 %
Market Concentration Medium

Major Players

Philippines Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Philippines Data Center Cooling Market Analysis

The Philippines Data Center Cooling Market is expected to register a CAGR of 14.90% during the forecast period.

The Philippines data center rack market reached a value of USD 178.6 million in the previous year, and it is further projected to register a CAGR of 14.9% during the forecast period.

  • The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.
  • The upcoming IT load capacity of the Philippines data center market is expected to reach 950 MW by 2029. The country's construction of raised floor area is expected to increase to 5.3 million sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 260K units by 2029. NCR (Metro Manila) is expected to house the maximum number of racks by 2029. The average annual temperature is 27.1 °C, with relatively small seasonal variations of about 3 °C. Depending upon climatic conditions, the DC cooling is processed in the DC facilities.
  • There are close to 23 submarine cable systems connecting the Philippines, and many are under construction.

Philippines 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 Philippines 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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Philippines Data Center Cooling Market Size Summary

The Philippines data center cooling market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and rising investments from local players. The market is characterized by the adoption of advanced cooling technologies, such as liquid cooling, which offers superior heat transfer properties and energy efficiency compared to traditional air cooling systems. This technological advancement is particularly beneficial in the Philippines' tropical climate, where it helps reduce energy consumption and carbon footprint. The market is also supported by the growing eCommerce sector and the expansion of digital platforms, which necessitate enhanced data center facilities to accommodate the rising data consumption and storage needs.

The competitive landscape of the Philippines data center cooling market is moderately competitive, with major players like Stulz GmbH, Schneider Electric SE, and Vertiv Group Corp. leading the market. These companies are focusing on sustainable and eco-friendly cooling solutions, such as the use of low global warming potential refrigerants. The market is further bolstered by investments from global technology firms like Alibaba Cloud Intelligence, which are expanding their data center capacities to meet the increasing digital adoption. The ICT sector's growth, driven by rising IT investments and the demand for cloud-based solutions, is expected to continue fueling the expansion of the data center cooling market in the Philippines over the forecast period.

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Philippines 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

      2. 1.2.2 Emergence of Green Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Costs, 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

Philippines Data Center Cooling Market Size FAQs

The Philippines Data Center Cooling Market is projected to register a CAGR of 14.90% during the forecast period (2024-2030)

Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Rittal GmbH & Co. KG and Mitsubishi Electric Hydronics & IT Cooling Systems SpA are the major companies operating in the Philippines Data Center Cooling Market.

Philippines Data Center Cooling Market Report Snapshots

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