Intelligent Data Centres Issue 01 | Page 51

Global data centre cooling market expected to grow T he global data centre cooling market size is expected to reach US$20.7 billion by 2025 expanding at a CAGR of 13.5%, according to a study conducted by Grand View Research. Emergence of cloud computing coupled with initiatives by government organisations to promote the adoption of cloud technology and enable prominent vendors to introduce technological advancements is driving the market growth. For example, the government of the UAE introduced various projects including Smart Dubai and Smart Abu Dhabi, which were aimed at bringing about Digital Transformation and economic growth in the country. Such initiatives are expected to drive the market in UAE. For instance, Apple’s North Carolina data centre facility operates completely on sustainable, eco-friendly power sources as data centre cooling is achieved through the free-air cooling technique, allowing the chillers to be off 75% of the time. Additionally, there is a rise in pressure from the local and federal government agencies, environmentalists and the general public for organisations to implement green initiatives. Therefore, high demand for eco-friendly and cost-effective cooling solutions is expected to propel the market growth. However, high installation and maintenance costs, electricity consumption and carbon emissions are some of the challenges affecting the industry growth. Further key findings from the study suggest: • • The telecom segment accounted for more than 20% of the total market share in 2018 owing to increased penetration of 4G services and development of 5G infrastructure that has data-intensive networks • • Furthermore, the growing number of telecom subscribers using smartphones and tablets is anticipated to boost the demand for data centres, thereby propelling the market growth • • The Middle East region is expected to witness substantial growth owing to a rising need for enhanced cooling techniques • • Several IT companies including Google, Oracle Corporation and Alibaba have announced their plans to build data centres in the Middle East • • Europe is also anticipated to witness a significant growth owing to the cold weather conditions in Nordic countries • • The raised floor with containment segment is expected to register the fastest CAGR 6% from 2019 to 2025. ◊ Issue 01 51 i Rising numbers of data centres, increasing usage of cloud computing and an increased demand for eco-friendly cooling technologies are some of the key factors that are expected to boost the market growth. Data centre cooling accounts for more than 30% of the total energy consumption. In the current scenario, companies are moving toward sustainable cooling, which can save up to 80% or more on energy costs for cooling.