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Market Overview

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The data center precision air conditioning market is projected to grow at a compound annual growth rate (CAGR) of 5.01% from 2022 to 2027, reaching a value of $2.9 billion by 2027 compared to $2.2 billion in 2021. Following the impact of COVID-19, the global data center cooling market experienced steady growth in 2021. As an essential service, the data center industry saw an increased demand for power capacity during the pandemic. The construction of hyperscale data centers with a power capacity exceeding 30 MW will continue to drive market growth throughout the forecast period, leading to increased adoption of cooling infrastructure.

The US dominates the global data center precision air conditioning market, followed by Western Europe, China, and Nordic countries. However, market growth is significantly boosted by the construction of data centers in Latin America, the Middle East and Africa, and Southeast Asia (excluding Singapore), including India, China & Hong Kong, and South Korea. The market has also witnessed mergers and acquisitions, contributing to increased facility construction.

With the growing adoption of high-performance computing (HPC) infrastructure for artificial intelligence and machine learning workloads in data centers, the data center precision air conditioning market is expected to become more competitive. Developed and matured markets such as North America, China, Japan, and Western European countries will see intense competition. In contrast, developing markets with a presence of global vendors may experience lower competition. The Middle East, Africa, APAC, and Latin American countries are actively developing their data center markets, leading to an increase in deployments and fueling the precision air conditioning market.

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Market Segmentation

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The market is segmented based on various factors, including product, deployment, tier standards, and geography.

Segmentation by Products
CRAC Units
CRAH Units

Segmentation by Deployment
In-row cooling
In-rack cooling
Centralized

Segmentation by Tier Standards
Tier I & Tier II
Tier III
Tier IV

Segmentation by Geography
North America – US, Canada
Western Europe – UK, Germany, France, Netherlands, Ireland, Switzerland, Italy, Belgium, Spain
Central Eastern Europe – Russia, Poland & Austria, Others
APAC – China, Hong Kong, Australia, New Zealand, India, Japan, Rest of APAC
Southeast Asia – Singapore, Malaysia, Thailand, Indonesia, Other Southeast Asian Countries
Nordic – Denmark, Norway, Sweden, Finland & Iceland, Other Nordic Countries
Middle East – UAE, Saudi Arabia, Turkey, Israel, Other MEA Countries
Africa – South Africa, Kenya, Nigeria, Other African Countries
Latin America – Brazil, Mexico, Other Latin American Countries

North America is experiencing an increasing adoption of AI-based infrastructure solutions, particularly in cooling infrastructure. This trend is driving the procurement of rack-based cooling solutions in the region. The market for Computer Room Air Conditioning (CRAC) and Computer Room Air Handler (CRAH) units is the largest revenue contributor, followed by evaporative coolers and chillers.

During the forecast period, the market is expected to see a shift towards modular in-rack cooling solutions. The most efficient cooling technology used in data centers is the in-row cooling technology, which is equipped with a rack power density of over 6kW per rack and above. The adoption of in-row cooling systems is high due to their increased efficiency and ability to prevent the mixing of hot and cold air. Additionally, the demand for high-performance computing infrastructure has grown with the deployment of the 5G network and the construction of edge data centers. As a result, modular cooling infrastructure installations, including in-row and rack-based cooling systems, are expected to grow during the forecast period.

In the US and Canada, most data centers are Tier III certified and have multiple levels of redundancy. In Western Europe, Tier IV facilities have adopted a 2N+1 redundant configuration for their cooling systems.

European countries, including Western Europe, the Nordics, and Central & Eastern Europe, are the primary revenue generators for adiabatic cooling units used to cool data centers with outside free air. In the UK, the majority of facilities are either Tier III or Tier IV certified by the Uptime Institute due to their high standard design and construction, which includes redundant configurations. In the Nordic region, colocation service providers are developing Tier III common facilities adopting N+1 or 2N redundant cooling systems.

The North American data center precision air conditioning market share is expected to surpass USD 1.01 billion by 2027. The US witnessed the opening of more than 110 facilities in 2021, followed by Canada with over 11 projects in the same period. North America, especially with the construction of hyperscale facilities with over 25 MW of power capacity, is a strong driver for the data center market. The growth in the North American data center market is concentrated in northern Virginia, Dallas, Chicago, the Silicon Valley region in California, as well as New York and Atlanta. Investments in Tier III facilities have also increased in this region, with the US dominating the market.

In the APAC region, China, Japan, Australia, New Zealand, and India are the primary data center markets that have attracted investments from global colocation companies and cloud service providers. Additionally, the region is witnessing investments in edge computing locations across countries such as China, India, and Australia. In Latin America, Brazil is the primary contributor to data center investments, followed by Mexico, Chile, Colombia, and other countries in the region. Most data centers in Latin America use air-based cooling systems with N+1 and N+2 redundancies.

In the Middle East & African countries, the major players in data center investments include the UAE, Saudi Arabia, South Korea, Israel, Kenya, Nigeria, Turkey, and others. Due to water scarcity in many of these countries, data center facilities in the region primarily adopt air-based cooling systems, including CRAH & CRAC, in-row, and centralized precision air conditioning systems.

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Competitive Landscape

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Key companies profiled in this report include Airedale, AIRSYS, ClimateWorx, Climaveneta, Data Aire, Delta Group, Emicon, Eaton, Huawei, Rittal, Renovoair Zhuhai, Swegon, Schneider Electric, STULZ, Vertiv.

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Recent Industry Developments

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Equinix has announced its plans to open a new data center in Aschheim on Dywidagstrasse 10 in 2022. With an investment of $90 million, the data center will span an area of 24,200 square feet and have a cabinet capacity of over 800.

Stack Infrastructure has successfully completed the construction of its newly built data center located outside Portland, Oregon. The project, which commenced in 2021, has resulted in a state-of-the-art facility with a capacity of 24 MW. Situated on 180,000 square feet of land, the data center is now operational and ready to serve the needs of customers.

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Key Questions Answered

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What was the market size and growth rate for the data center precision air conditioning market in 2020?

The market size of the global data center precision air conditioner market was USD 2.2 billion in 2021 and is projected to reach USD 2.9 billion by 2027, with a compound annual growth rate (CAGR) of 5.01% from 2022 to 2027.

What are the key trends impacting the growth of the data center precision air conditioner market?

The implementation of Monitoring & Automation Solutions and the deployment of Edge Data Centers are among the key trends impacting the growth of the market.

What are the market enablers and threats faced by vendors in the global market?

Increased investment for precision air conditioner adoption and the increase in the deployment of modular data centers are significant drivers for the market. However, the expected increase in water and electricity consumption poses a threat to market growth.

Who are the key vendors in the data center precision air conditioning market? What strategies are vendors adopting to ensure sustainability?

Airedale, Axis Communications, AIRSYS, ClimateWorx, and Climaveneta are key players in the data center precision air conditioning market. Vendors are adopting strategies such as procuring renewable energy sources to operate their facilities to ensure sustainability.

Which region is likely to provide significant business opportunities for vendors during the forecast period?

North America is projected to offer maximum business opportunities for precision air conditioning vendors during the forecast period.