The rising demand for cloud-based services, increased digitalization, and the COVID-19 impact have led to an increase in data center demand, further leading to an increase in the demand for efficient cooling systems in APAC.
Non-traditional data center cooling is also evolving owing to an increase in rack power density, the rise in High Performance Computing (HPC), and the deployment of edge data center facilities.
Innovative cooling technologies such as underwater data centers, floating data centers, tropical data centers, and cooling using snow are currently being tested and will have a significant impact on the data center cooling market in coming years.
There will be an increase in the adoption of lithium-ion and direct-to-chip cooling in APAC over the forecast period. For e.g., over 65% of the cryptocurrency mining across the world is done in China. The rack power density of such is very high, thus boosting the development of data centers with high-performance computing infrastructure, needing advanced cooling solutions.
Data center operators in APAC are working towards the development of data centers at a PUE < 1.5, where efficient cooling systems are important. Automation of cooling systems, and hybrid cooling solutions that include both free cooling and other cooling systems are being used by data center operators to that effect.
Market Size & Forecast by Revenue | 2020−2026
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by cooling infrastructure, cooling system, cooling technique, tier standard, and geography
Competitive Landscape – 4 key vendors and 53 other vendors
Datacenter operators seek efficient solutions to reduce their CAPEX and OPEX, conserve data center space, and lower power supply to cooling units. Most modern facilities are being built based on the ASHRAE data center cooling guidelines and the Uptime Institute's tier standards for redundant design.
Modern CRAC and CRAH systems used in data centers are precision air-conditioners. The use of CRAC units is higher among facilities in APAC, and most of these facilities use air-based cooling systems. With new facilities being built to handle more than 10 MW of IT load, these facilities use multiple CRAC and CRAH units split across data halls and containment designs. Most facilities in APAC are designed with N+N CRAC or CRAH units.
In data centers, air-based cooling solutions comprise DX-based CRAC units, free solutions, air-cooled chiller-based cooling, and dry coolers. Free-cooling solutions are gaining momentum over liquid-based solutions. Datacenter operators in China, South Korea, Australia, and Japan are currently increasing free solutions and their systems.
APAC Data Center Cooling Market by Cooling Infrastructure
Other Mechanical Infrastructure
APAC Data Center Cooling Market by Cooling System
CRAC & CRAH Units
Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
APAC Data Center Cooling Market by Cooling Technique
Most countries in APAC are increasingly adopting Artificial Intelligence (AI) and Machine Learning (ML) as part of their digitalization strategy. For instance, the Thailand government is initiating several big data and IoT projects as part of Thailand 4.0 plan in sectors such as agriculture, government, e-commerce, and healthcare, among others. In Jakarta, Indonesia, healthcare data is being collected through apps to add to the big data system in 2020; the data will be used to generate health programs by 2022. In Japan, IoT-enabled devices have witnessed high acceptance for monitoring and surveillance purposes, especially in the healthcare sector during the outbreak of the COVID-19 pandemic. Other countries like Hong Kong, China, South Korea, and India are all adopting AI and ML strategies to grow their digital economies in the coming years. The storage and processing of AI and ML-related data require high processing power and high-density racks, which will require a superior cooling system as well.
Key Drivers and Trends fueling Market Growth:
Growing 5G & Edge Data Center Deployments
Innovative Data Center Technologies
Increasing Data Center Investments
Impact of Covid-19 on Data Center Demand
APAC Data Center Cooling Market – Geography
In China & Hong Kong, data center demand is expected to grow during the forecast period due to the need for cloud-based services, big data analytics, and IoT. In 2020, China had around 1.6 billion cellular connections, around 850 million internet users, and around 1 billion active social media users. These will boost the construction of colocation facilities and prompt regional cloud service providers to establish multiple availability zones across the country as the demand for hybrid infrastructure services increases. In addition, there is substantial demand for cryptocurrency data centers in China, thus boosting the development of data centers with high-performance computing infrastructure. For global companies, it is not possible to directly establish and operate data centers in China, and they have to partner with local firms to establish a footprint in the country. The majority stakeholder requirement has driven investments from local providers in mega data center projects across the region.
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