Cooling is important to the efficient operation of most devices. In the data centre, cooling ensures efficient performance and prevents overhearing of servers, storage arrays and switches. In a new report, Omdia claims that the data centre thermal management market surged US$7.67 billion, and forecasts this to continue with a CAGR of 18.4% until 2028.
Omdia says the surge will largely be fuelled by AI-driven demands and innovations in high-density infrastructure marking a pivotal moment for the industry.
Liquid-cooling versus air-cooling forecast 2021-2028
Market dynamics
Key trends include the rapid adoption of Rear Door Heat Exchangers (RDHx) combined with 1-P direct-to-chip cooling, achieving an impressive 65% year-over-year growth, frequently integrating heat reuse applications. This period also sees a strategic blend of air and liquid cooling technologies, creating a balanced and efficient thermal management.
Omdia's principal analyst, Shen Wang says that in 2023, the global data centre cooling market experienced increased consolidation, Top5 and Top10 concentration ratios rising by 5% from the previous year.
Market growth for data centre cooling was primarily constrained by production capacity, particularly for components like Cooling Distribution Units (CDUs), rather than a lack of demand. Numerous supply chain players struggled to satisfy the soaring market needs, causing component shortages.
However, improvements forecasted for 2024 are expected to alleviate this issue, unlocking orders delayed from the previous year due to supply chain bottlenecks. During this time, liquid cooling adoption witnessed robust growth, particularly in North America and China, with new vendors entering the scene and tracked companies exhibiting significant expansion.
The AI influence
The data centre thermal management is advancing due to AI's growing influence and sustainability requirements. Despite strong growth prospects, the industry faces challenges with supply chain constraints in liquid cooling and embracing sustainable practices.
Moving forward, the integration of AI-optimized cooling systems, strategic vendor partnerships, and a continued push for energy-efficient and environmentally friendly solutions will shape the industry's evolution.
Successfully addressing these challenges will ensure growth and establish thermal management as a cornerstone of sustainable and efficient data centre operations, aligning technology with environmental stewardship.
"Data centre cooling is projected to be a US$16.8bn market by 2028, fuelled by digitalization, high power capacity demand, and a shift towards eco-friendly infrastructure, with liquid cooling emerging as the biggest technology in the sector," concludes Wang.
