Focus On Efficiency Drives Development Of APAC DC Cooling Solutions Mkt

Growing demand for internet applications, virtualisation and online delivery systems has, in turn, lent momentum to the datacentre cooling solutions centre market in Asia-Pacific. Emerging best practices, including greater focus on efficiency, will continue to aid market development in the region.
New analysis from Frost & Sullivan, finds that the market generated revenues of more than US$1.2 billion in 2011 and estimates this to reach US$2.17 billion in 2018.

Digital transactions and online hosting services are gaining pace, and the need to network globally for better process and logistics management has heightened, speeding up the establishment of datacentres in Asia-Pacific. Hence, cooling system suppliers are investing in new product development to keep up with these fast-changing requirements and thereby stimulate sale volumes.

“Datacentres are likely to face an energy deficit owing to escalating digitisation and cloud computing, and green datacentre cooling solutions that reduce carbon emissions are becoming popular,” said Frost & Sullivan Energy and Environment Senior Research Analyst Amit Kumar Singh. “Customer evaluation of cooling solutions based on total cost of ownership rather than purely on initial capital costs further highlights the importance of efficiency.”

The expansion of corporate and government networks to meet the challenges of the ever-widening scale of business and operation, along with the explosion in social networking, will increase the use of datacentres, and consequently boost cooling systems market growth. Datacentre operators from across the globe are relocating their datacentres to the Asia-Pacific, further contributing to the market’s scope.

Regulations on global warming and carbon emissions are likely to compel datacentre providers to replace existing systems with more efficient cooling solutions, adding to market revenues in the region. However, these upgrades will be limited to a certain degree due to the high capital costs. Potential customer’s preference for traditional standard cooling solutions, and reluctance to commit to the sizeable investments necessary for new more efficient cooling systems, pose another challenge.
Long, drawn-out bureaucratic processes delay equipment purchase and implementation, dampening the demand. The slow construction market in Asia-Pacific has weakened demand from vertical markets, further affecting cooling infrastructure expansion.

“Cooling solution providers must partner with IT vendors to broaden business opportunities, build comprehensive solutions, and widen their reach,” concluded Singh. “Creating a global product design team will enable cooling equipment vendors to consistently develop sought-after products that comply with the industry’s highest efficiency benchmarks.”