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Europe Data Center Cooling Market - Forecasts from 2022 to 2027

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    Report

  • 102 Pages
  • December 2022
  • Region: Europe
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716782

The Europe data center cooling market is projected to grow at a CAGR of 8.07% during the forecast period to reach US$3.637 billion by 2027, from US$2.113 billion in 2020.

Data center cooling equipment uses tools, systems, techniques, and processes to ensure ideal temperature and humidity levels within data centers. It ensures cooling of the equipment, proper ventilation, and humidity control that keeps the equipment within the desired temperature. As a result of the rise in cloud computing, and increasing IT requirements the temperature levels increase in data centers and many times damage the equipment. The data center cooling system removes the access heat from the air and replaces it with cooler air by venting hot air outside and bringing in cooler air. Certain systems aid in recycling internal air by cooling it through a hot and cold aisle. Emerging technologies in data center cooling are air cooling, hot and cold aisle layouts, liquid cooling, geothermal cooling, evaporative cooling, solar cooling, and Kyoto cooling. data center cooling provides numerous benefits which include greater efficiency in a data center, longer server uptime, and, longer lifespan of technology.

An increase in demand for data centers and an increase in sustainable technology due to environmental concerns are expected to boost the market for Europe's data center cooling market.

The increase in digitization, the requirement for large storage spaces, and emerging technologies for example cloud computing and IoT (Internet of Things) are contributing to the increase in demand for data centers which is further boosting the demand for data centers cooling systems and solutions. Geothermal cooling which uses the temperature of the earth below the surface to provide cooling is now being used in data centers that utilize closed-loop pipe systems with water or other coolants and runs through vertical wells underground that are filled with heat-transferring liquid. Solar cooling is another trend that converts heat from the sun into cooling which can be used in data center air cooling systems. The demand for cloud computing and computing power backed by digitization is increasing the requirement for sustainable technology in Europe as a result of climate change, and the increase in heat temperature, and humidity. As per International Trade Administration, the UK is one of the largest cloud markets in Europe owning to larger investments in ICT business.

Emerging green technologies in the data center market are increasing the market demand. European Commission approved the European Green Deal in 2020 to combat climate change and environmental degradation that are an existential threat to Europe. One-third of the 1.8 trillion-euro investments from the Next Generation EU Recovery Plan and EU’s seven-year budget is expected to finance the European Green Deal in coming years. Production and use of energy in Europe is more than 75% and contribute to greenhouse gas emissions. Therefore, the major goal of the European Green Deal is decarbonizing the EU’s energy system by 2030.

However, the expensive cost of data center cooling equipment and the impact on the environment as data center cooling power consumption increases to stabilize the data center which already adds to the carbon footprint on the plant can hinder the demand for the data center cooling market.

Key Development

  • Legrand Group acquired an entire portfolio of USystems which included ColdLogik cooling technology Ltd in July 2022. The acquisition expanded Legrand Group’s presence in the UK data center market. Additionally, it provided Legrand with expertise in specialist cooling and energy efficiency technologies.
  • Munter which is a global leader in energy-efficient air treatment and solutions acquired EPAC which is an Ireland-based manufacturer of data center cooling equipment, in January 2022. The acquisition strengthened the presence of Munter in the Europe data center market.
  • Castrol recently announced the merger of a test and development center for data center immersion cooling with Submer in October 2022. The merger will provide Castrol to develop new immersion fluids for data centers in Pangbourne, London.
  • Airdale announced the launch of four data center cooling solutions in February 2022. The products included Smart Cool One for colocation and hyperscale data centers, DCS Enhanced Free Cooling Chiller Range for data center environments, IQityTM for long uptime of data centers, and Cloud Diagnostics for phone, tablet, and laptop performance management.

During the forecast period, the UK is expected to hold a significant market share in the European data center cooling market.

Data Centers are the backbone of the digital economy and transformation in the UK, Germany, and other countries in Europe. A lot of data center infrastructure is located in Europe for example Frankfurt, London, Zurich, Stockholm, and Madrid. Rising internet users as a result of the shift towards digitization are increasing the demand for data centers and further boosting the data center cooling market in Europe. As per Office for National Statistics, 92% of adults in the UK were using the internet in 2020 a huge increase from 2019 as a result of COVID-19 work from culture. Another reason, for an increase in data center cooling equipment, is climate change which impacts devices and increases the heat in the device that damages the inner functioning of the system resulting in an increase in the requirement for data center cooling equipment. As per Government of UK data, total greenhouse gas emissions in 2020 on a residence basis were 478 million tonnes of carbon dioxide equivalent (Mt CO2e) which was higher than the usual territorial measure. It was due to industries and households consuming higher energy through computers, laptops, and other devices for working from home requirements.

COVID-19 Insights

COVID-19 had a positive impact on the Europe data center cooling market. The pandemic witnessed an increase in internet consumption due to the work-from-home culture which boosted the data center cooling market. Europe witnessed a data center boom as a result of an increase in online applications namely Zoom, Google Meet, and others. This affected electricity consumption and increased the pressure on the environment that required the use of data center cooling. Internet traffic and server slowdowns were key reasons for the increase in demand for data center cooling equipment as the load capacity of data centers reduced and data centers were not able to handle the increasing load which resulted in temperature increase and heating of devices.

Market Segmentation:

By Solutions

  • Air Conditioner
  • Chillers
  • Economizers
  • Cooling Towers
  • Others

By Size

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

By End-Users

  • Colocation Service Provider
  • Cloud Service Provider
  • Enterprise

By Industrial Vertical

  • Banking and Financial Services
  • Manufacturing
  • Healthcare
  • Communication and Technology
  • Energy
  • Education
  • Government
  • Media and Entertainment
  • Others

By Country

  • Germany
  • France
  • United Kingdom
  • Spain
  • Italy
  • Denmark
  • Sweden
  • Netherlands
  • Others

Frequently Asked Questions about the European Data Center Cooling Market

What is the estimated value of the European Data Center Cooling Market?

The European Data Center Cooling Market was estimated to be valued at $2.11 billion in 2020.

What is the growth rate of the European Data Center Cooling Market?

The growth rate of the European Data Center Cooling Market is 8.0%, with an estimated value of $3.64 billion by 2027.

What is the forecasted size of the European Data Center Cooling Market?

The European Data Center Cooling Market is estimated to be worth $3.64 billion by 2027.

Who are the key companies in the European Data Center Cooling Market?

Key companies in the European Data Center Cooling Market include AIREDALE INTERNATIONAL AIR CONDITIONING LTD., IBM, Fujitsu, HP, Eaton, Vertiv Group Corp and Schneider Electric.

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. EUROPE DATA CENTER COOLING MARKET BY SOLUTIONS
5.1. Introduction
5.2. Air Conditioner
5.3. Chillers
5.4. Economizers
5.5. Cooling Towers
5.6. Others

6. EUROPE DATA CENTER COOLING MARKET BY SIZE
6.1. Introduction
6.2. Small Enterprises
6.3. Medium enterprises
6.4. Large Enterprises

7. EUROPE DATA CENTER COOLING MARKET BY END-USER
7.1. Introduction
7.2. Colocation Service Provider
7.3. Cloud Service Providers
7.4. Enterprise

8. EUROPE DATA CENTER COOLING MARKET BY INDUSTRY VERTICAL
8.1. Introduction
8.2. Banking and Financial Services
8.3. Manufacturing
8.4. Healthcare
8.5. Communication and Technology
8.6. Energy
8.7. Education
8.8. Government
8.9. Media and Entertainment
8.10 Others

9. EUROPE DATA CENTER COOLING MARKET BY COUNTRY
9.1. Germany
9.2. France
9.3. United Kingdom
9.4. Spain
9.5. Italy
9.6. Denmark
9.7. Sweden
9.8. Netherlands
9.9. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrative
10.3. Mergers, Acquisition, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES
11.1. AIREDALE INTERNATIONAL AIR CONDITIONING LTD.
11.2. IBM
11.3. Fujitsu
11.4. HP
11.5. Eaton
11.6. Vertiv Group Corp
11.7. Hewlett Packard Enterprise Development LP
11.8. Schneider Electric

Companies Mentioned

  • AIREDALE INTERNATIONAL AIR CONDITIONING LTD.
  • IBM
  • Fujitsu
  • HP
  • Eaton
  • Vertiv Group Corp
  • Hewlett Packard Enterprise Development LP
  • Schneider Electric