The Future of Data Center Cooling Technologies: Global Insights and Projections 2023-2032

27 Mar 2024

The data center refrigerant market is experiencing robust growth, boasting a significant compound annual growth rate (CAGR) of 8.59%. This growth highlights the growing convergence of environmental sustainability and operational efficiency in the industry. As data centers expand globally, the need for effective cooling solutions is becoming more pressing.

Refrigerants are crucial in removing heat from IT infrastructure to ensure it functions at its best. With increasing awareness of environmental issues, there's a marked shift towards the use of environmentally friendly refrigerants, which have lower impacts on global warming and ozone depletion.

Data Center Refrigerant Market Overview

Industries like IT and Telecom are increasingly relying on refrigerants, driven by the growing need for strong and efficient cooling systems to back the expanding digital infrastructure. This trend underscores the importance of sophisticated refrigeration solutions that are suitable for the high-density computing environments found in contemporary facilities.

The global data center refrigerant market is expected to grow from $471.2 million in 2022 to $1,215.1 million by 2032, at a CAGR of 8.59% during the forecast period 2023-2032.

Furthermore, liquid cooling fluids are becoming more popular. They are key components of cutting-edge cooling approaches, such as immersion and direct-to-chip cooling, improving energy efficiency and reducing environmental impact in data centers. Their growing popularity indicates the industry's shift towards solutions that not only meet operational requirements but also support sustainability objectives.

Market Segmentation:

Segmentation 1: by Industry
• IT and Telecom
• Banking
• Financial Services and Insurance (BFSI)
• Research and Healthcare
• Retail
• Manufacturing
• Others

Segmentation 2: by Data Center Type
• Hyperscale
• Colocation
• Edge Data Center
• Enterprise

Segmentation 3: by Refrigerant Type
• Conventional Refrigerants 
• Liquid Cooling Fluids

Segmentation 4: by Cooling Type 
• Air Cooling 
• Liquid Cooling 
• Free Cooling

Segmentation 5: by Deployment 
• Installation/OEM 
• Aftermarket
Segmentation 6: by Region
• North America
• Europe
• U.K.
• China
• Asia-Pacific and Japan
• South America

Access Sample Report

Recent Developments in the Data Center Refrigerant Market 

•    In May 2022, Intel revealed its plan to invest $700 million in a new R&D facility dedicated to creating advanced immersion liquid cooling solutions and other technologies for data center use.
•    In November 2022, Google shared its initiative to develop a new cooling system for data centers, which utilizes the servers' waste heat to power the cooling mechanism. This system is currently in the early stages of development. 
•    In June 2021, Microsoft launched an environmentally friendly data center region in Arizona. These data centers in Arizona will use adiabatic cooling, a technique that avoids the use of water for cooling for more than half of the year. 

Key Players

Some of the prominent names in the market are:

• Honeywell International Inc.
• The Chemours Company
• Climalife
• Arkema
• Orbia
• Dow
• M&I Materials Ltd
• Asetek, Inc. A/S
• 3M
• Cargill, Incorporated

Evaluate TOC

Analyst Note

The data center refrigerant market is poised for robust growth, driven by the increasing demand for energy-efficient and sustainable cooling solutions in data center infrastructure. The adoption of advanced technologies, such as neural network implementations for real-time data analysis and indirect thermosyphon cooling methods, underscores the industry's commitment to optimizing cooling efficiency.

Investments in innovative cooling systems, exemplified by initiatives such as COOLERCHIPS, further propel market expansion. With escalating concerns over environmental impact and energy consumption, the market is expected to witness significant growth as organizations prioritize the adoption of eco-friendly refrigerants to achieve operational efficiency and sustainability goals.