Southeastern US dominates data center investments, followed by Western US with around 30% share in data center investments. Also, COVID-19 has been a strong catalyst for growth in US data center investments in 2020.
In 2020, investments in over 45 hyperscale data center projects of 15+ MW capacity and cryptocurrency facilities boosted the demand for cooling infrastructure solutions across the US market.
The US data center market to witness cumulative investments of over USD 5 billion in CRAH and CRAH units during 2021-2026, with growing rack power density and edge facility contributing to in-rack/in-row air-conditioning solutions.
Rapid growth in procurement of liquid-immersion cooling and direct-to-chip solutions witnessed through the increase in deployment of artificial intelligence and machine learning workloads.
The US is also a major adopter of free-cooling techniques. States such as Virginia, Ohio, Iowa, and Michigan support up to 5,500 hours of passive free cooling methods.
Market Size & Forecast by Revenue | 2020−2026
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by infrastructure (cooling systems & other infrastructure), systems, technique, tier standards, and geography
Competitive Landscape – 5 key vendors and 41 other vendors
In terms of cooling, the U.S. data center market by investment is expected to be 15–20% of the total data center investments, depending on the facility design and IT load. The operators are looking for efficient solutions to reduce CAPEX and OPEX, conserve data center space, and reduce the power consumption of cooling units.
Data centers in the South Eastern region adopt free-cooling techniques that include chillers with evaporate cooling. Virginia supports up to 5,500 hours of passive free cooling annually, thereby reducing the application of chillers. Alabama and Florida support over 3,500 hours and 3,000 hours, respectively.
Air-based techniques, which include traditional CRACs and free cooler solutions, are gaining momentum over legacy liquid-based solutions. However, the use of chilled water systems is highly prevalent in the U.S. data center cooling market. The operators are mainly using the hybrid system with minimal compressor support during peak summers and free cooler solutions without the need for compressors.
U.S. Data Center Cooling Market by Infrastructure
U.S. Data Center Cooling Market by Systems
CRAC & CRAH
Cooling Towers & Dry Coolers
Economizer & Evaporative Coolers
U.S. Data Center Cooling Market by Technique
U.S. Data Center Cooling Market by Tier Standards
Tier I & II
U.S. Data Center Cooling Market – Dynamics
Hyperscale operators continually innovate to operate a sustainable data center environment at reduced CAPEX and OPEX. The success of two innovative concepts that are in the pilot testing stage − underwater and tropical data centers − will have a significant impact on the market with regard to data center deployments. In 2015, Microsoft tested its underwater data center operations. After initial success, phase 1 of the project enabled Microsoft's data center operations to record a PUE of 1.07. In 2018, Microsoft pilot-tested a large deployment underwater at the European Marine Energy Center in Scotland. This facility is powered by nearby marine renewable energy sources and uses AI-based monitoring systems. The success of this pilot project will enable Microsoft to stop constructing large facilities on land and develop facilities in the ocean. In 2020, Microsoft's final stage has been retrieval and revealed that the underwater data center system is reliable, environmentally, and economically practical.
Key Drivers and Trends fueling Market Growth:
Growing Rack Power Density
AI Enhances Liquid Immersion & Direct-to-Chip Cooling Adoption
Data Center Investment Continue to Rise
Continuous Growth in Hyperscale Data Center Development
U.S. Data Center Cooling Market – Geography
Within the region, Virginia led the data center investment, with over 20 projects in 2020 and 50% of the total share of investments. The major investors in Virginia were CyrusOne, COPT Data Center Solutions, Digital Realty, Aligned Data Centers, Compass Data Centers, EdgeCore, Element Critical, and Iron Mountain. Virginia is among the biggest and most active data center markets in the US. It is also the leading market for data centers across the world due to its strong connectivity through fiber-optic infrastructure that runs across the region by Mid-Atlantic Broadband Communities Corporation's (MBC) advanced fiber-optic broadband system. The average electricity pricing for Virginia is around $6 cents per kWh.
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