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In a period of remarkable expansion, the global data center cooling market is witnessing unprecedented growth. The increasing demand for artificial intelligence (AI) and machine learning (ML) applications among data center operators has accelerated the need for effective cooling systems. Additionally, the surge in self-built data center deployments by hyperscale operators worldwide has propelled the demand for efficient cooling infrastructure.
Cooling systems account for approximately 15% to 25% of the overall investments in data center construction. The major power consumers within data centers are the IT infrastructure and cooling systems. To align with the growing focus on carbon neutrality, data center operators prioritize innovation when selecting cooling systems that offer lower power consumption, enhanced efficiency, and reduced carbon emissions.
As a result, several operators have recently acquired energy-efficient and innovative cooling infrastructure solutions which can decrease power consumption by up to 50%. The rise in water consumption and power usage, driven by higher rack capacities, has further fueled the demand for efficient cooling systems in the global data center cooling market.
The global data center cooling market size was $8.73 Billion in 2022. The market will reach $12.64 billion by 2028, growing at a compound annual growth rate of 6.36% from 2023 to 2028.
The North American market is at the forefront of global data center industry growth, benefitting from the early availability and adoption of innovative technologies and investments from colocation service providers, hyperscale data center operators, enterprises, and government agencies. This region is a driving force and an incubator for technological innovations in the data center space. Major contributors to market growth in North America include Facebook, Google, Equinix, Digital Realty, Compass Datacenters, Cologix, Vantage Data Centers, NTT Global Data Centers, QTS Realty Trust, CoreSite, CyrusOne, and Switch.
According to the report, North America also leads the global data center cooling market, with the United States at the forefront, followed by Canada. Colocation providers, hyperscale data center operators, enterprises, and government agencies in the region are investing billions in data center facilities and adopting redundant power backup infrastructure. In 2022, the United States accounted for approximately 25% of global data center investments in the number of facilities and emerged as one of the largest contributors to the global data center power market. Key data center markets in the US include Virginia, Texas, California, Illinois, Georgia, Nevada, and Oregon.