North America Data Center Cooling Market Outlook, 2027

Growing penetration of technological advancements and consumer electronics across the North America region has accelerated the demands for data storage system. In 2021, North America had approximately more than 400 Million internet users. From the research it has been estimated that more than 85% of adults in North America use the internet, either irregularly or frequently. In addition to that, with businesses realizing the dynamism of the data, they are moving from their traditional resources to well-equipped data centers to achieve better data management. Data centers have become top priority across the region to measure up their various industries including IT infrastructure requirements. They have to operate 24/7 efficiently to process huge chunks of data. In North America, there are more than 2000 data centers present in prominent countries. This increasing data center infrastructure in North America is responsible to produce high amount of heat. Data center overheating can result in loss of data and productivity. To overcome this threat, data center cooling system is highly required. As the name suggests, data center cooling means to control the temperature inside data centers to reduce heat. In addition to that, data center cooling system can also improve data center energy efficiency. Organizations require high processing power to acquire robust performance and improved cooling efficiency to obtain enhanced level of automation. Major market players in this region are concentrating on producing cost-effective and eco-friendly cooling solutions.

According to the research report, “North America Data Center Cooling Market Outlook, 2027” published by Bonafide Research, North America market is anticipated to grow with 12.28% of CAGR during the forecast period. In addition to that, region is expected to lead the global market with holding more than 40% market share by 2027. Owing to technological advancements and recent developments are projected to boost the data center cooling market growth across the region. For instance, in August 2019, Schneider Electric announced the expansion of their data center solutions with the emergence of digitalized critical facility operators in North America region. These solutions are specifically manufactured for service providers and large data centers across the region with provided benefits such as increased operational efficiency, lower risk and maximum uptime. Rising number of data centers across the region with emergence of 4G/5G networks along with features like energy efficiency, low cost and reduced overall IT costs are driving the North America data center cooling market.

North America data center cooling market is expected to be dominated by the United States of America during the forecast period followed by Canada and Mexico. USA is projected to have more than 85% of market share by 2027. In 2020, investments in over 45 hyper-scale data center projects of more than 15 megawatts capacity and cryptocurrency facilities are expected to boost the demands for cooling infrastructure across the United States of America market. Rising cloud facility in USA also directs towards the increasing need for data storage system. On the other hand, rising awareness about carbon and GHG emissions have fuelled the market growth across the country with the introduction of green data center initiatives. For instance, in January 2022, GRC (Green Revolution Cooling) announced a multi-year collaboration with Intel. This tie-up is more focused on empowering the data center industry to moderate the environmental impact due to digital infrastructure.

According to the report, North America data center cooling market is segregated into two component types which are solution and services. Among these component type, solution segment is anticipated to acquire higher market share during the forecast period due to increasing adoption of various data center solutions across the region. Data center solution is again categorized into various product types. Among this product type, liquid cooling and air conditioning segments are projected to have significant market growth during the forecast period. Low maintenance cost and higher working efficiency has boosted the demands for these products across the region. Further, data center cooling services are segmented into three types such as consulting, installation & deployment and maintenance & support. Among these types, installation and deployment segment is projected to have higher market share compared to other segments. On the other hand, maintenance & support segment is increasing with higher compound annual growth rate during the forecast period.

North America data center cooling market is further segmented into several industries vertical including BFSI (Banking, Financial Services and Insurance sector), IT and Telecom, research & academic, government & defense, retail, energy, manufacturing and health care etc. Among these industry verticals, IT & Telecom segment is projected to lead the data center cooling market due to higher penetration of technology enabled devices across the region. In addition to that, rising emergence of smart hospitals due to Covid-19 pandemic has boosted the demands for data storage systems in healthcare segment which in turn, will create higher market growth for data center cooling system. Based on the type of cooling, North America data center cooling market is segmented into three cooling types including room-based cooling, raw-based cooling and rack-based cooling. Among these types, room-based and raw-based cooling types are expected to acquire higher market share during the forecast period. Owing to higher efficiency provided by these segments, these segments are expected to witness higher market growth by 2027 in North America region.

Impact of Covid-19 on North America Data Center Cooling Market:
Due to Covid-19 Outbreak, the construction of several facilities in the North America region has been halted due to moderate supply chain disruptions. Let alone in the United States of America, the total number of data center construction projects indentified was over 135. Among them, around 95 projects were operational in 2019. The pandemic has affected several construction as well as installation of cooling equipments in data centers across the region during 2020. However, staying at home due to lockdown situations have resulted into higher adoption of consumer electronics that creates higher demands for data storage systems. This progress is expected to boost the market growth for North America data center cooling market by 2027.

Major Companies present in the market:
Vertiv Holdings Co., Schneider Electric S.E., Stulz Gmbh, Mitsubishi Electric Corporation, Daikin Industries Limited, Rittal Gmbh & Co. KG, Nortek Air Solutions LLC, Johnson Controls International PLC, Munters Group AB., Black Box Corporation, Airedale International Air Conditioning Limited, Asetek, Inc., Coolcentric, Degree Controls, Inc., Condair Group AG, Chilldyne Inc., LiquidCool Solutions, CoolIT Systems, Delta Electronics, Alfa Laval Corporate AB, Shenzhen Envicool Technology Co., Ltd, Shanghai shenglin M&E Technology Co., Ltd, GRC (Green Revolution Cooling), Aspen Systems, Fujitsu Limited

Considered in this report:
• Geography: North America
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report:
• North America Data Center Cooling market with its value and forecast along with its segments
• Country wise market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• United States of America
• Canada
• Mexico

By Component in the report:
• Solution
• Services

By Product Type in the report:
• Air Conditioning
• Chilling Units
• Cooling Towers
• Economizer
• Liquid Cooling
• Control Systems
• Others

By Service Type in the report:
• Consulting
• Installation & Deployment
• Maintenance & Support

By Industry Verticals in the report:
• BFSI
• IT & Telecom
• Research & Academic
• Government & Defense
• Retail
• Energy
• Manufacturing
• Others

By Cooling Type in the report:
• Room-based Cooling
• Row-based Cooling
• Rack-based Cooling

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning. Post this we have started doing primary calls to industry people by equally segmenting in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry manufactures, consultants, Key vendors related to Data Center& HVAC solution industry. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

Research Consultant

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