Europe Data Center Cooling Market 2014 - 2019

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EUROPE DATA CENTER COOLING MARKET 2014 - 2019 Market Shares, Forecasts & Trends

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1.2. RESEARCH METHODOLOGY

The research methodology can be put into the following sequence: 1) Secondary Research: Information was collected from a number of public and paid data sources. Public sources involved government sites, company annual reports, white papers and research publications by recognized industry experts. Paid data sources include authentic industry databases.

2) Primary Research: After collecting data from secondary sources, primary interviews were conducted with stakeholders at different points of the value chain like manufacturers, companies producing parts for cooling systems for data centres, end-product users and key opinion leaders of the industry. Primary research was used both to validate the data points obtained from secondary research and to fill the data gaps after secondary research.

3) Market Engineering: The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.

4) Expert Validation: The market engineered data is verified and validated by a number of experts, both in-house and external.

5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.

Europe Data Center Cooling Market | Sample

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2 EXECUTIVE SUMMARY Europe is a big market for data center cooling. The European data center cooling market is estimated to grow from $1.5 billion in 2013 to $2.84 billion by 2019 at an estimated CAGR of 11.25%. After North America, Europe is one of the biggest centers for eco-friendly data cooling. Green Technology or using renewable resources to cool data centers is being widely used in this region. There are a number of data centers spread across Europe handling a large volume of internet traffic from the region. Europe has an internet penetration of more than 75% of its population. In fact, in some countries like the Netherlands, Sweden, Denmark and Finland, internet penetration is more than 90%. Internet usage in the region has grown for some years because of an increase in the usage of smartphones, tablets and laptops. It is hardly surprising that Europe has almost 14% of all internet users, globally. Little attention has been given so far to the cost of energy used by different IT systems. But with the rising energy costs, enterprises are looking towards those solutions which can help them to save some dollars. The demands for such systems are on the rise and have become one of the driving factors behind the decisions regarding deploying new technologies. Data Center cooling is a primary target for energy efficiency improvements. These help in bringing down costs related to data centers’ energy consumption. Companies are now working towards new cooling technologies as well as refining the old ones. Some of the cooling technologies which are being used at present are chillers, air conditioners, economizers and hot huts. With data centers as one of the contributors to greenhouse gas emission, green data centers are gaining traction. These data centers maximize energy efficiency and minimize environmental impact.

There are many companies which are working towards improving the efficiency of existing data center. Skanska one of such companies has developed eOPTI-TRAX, a new data center cooling technology which will reduce expenditure incurred on cooling the servers considerably. As the demand for data center grows, there will be need for more effective cooling solutions. Though there are some major players like IBM, Schneider Electric and HP present in the Data Center cooling market, some other vendors like Skanska are challenging the status quo with their superior solutions Europe Data Center Cooling Market | Sample

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6 Europe Data Center Cooling Market Breakdown by Product Type 6.3 Row type 6.3.1 Introduction

Row type of cooling is where the cooling is done for a specific row of cabinets. In Row type, cooling equipment like the air conditioners is placed adjacent to the computer racks or within the row between two server racks or above the racks. The architecture is such that there are shorter paths of air flow so there is a higher utilization of the air conditioner capacity. The hot air from the servers exhaust is taken and passes through refrigerant or chilled water cooling coils to cool the air down which is let out near the server air inlet.

This type of cooling is widely being used in the industry now for medium to high density of servers in a data centres. There have been significant improvements in efficiency when deployed in high recirculation or low containment environment. This system provides the data centre to make changes in the cooling system for future uses. Companies can add more cooling systems to the existing systems and row based system is excellent for retrofitting existing installations.

The system has its disadvantages that this system is not viable for small or low density server space. It also requires an additional electrical and cooling infrastructure to support the air conditioners. As the cooling equipment will be in every row it also poses the problem of having more leakage problems in the pipes.

There are more advantages to the system where the technical expertise required is less in this because of the use of standard equipments. It also has lower capital expenses compared to other types of cooling methods.

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8 Europe Data Center Cooling Market Segmentation 8.1.4 Market Share, Size and Forecast by Countries 8.1.4.5 SWEDEN

Sweden is one of the best places in the world for digital business. It was ranked 3rd in the World Economic Forum and INSEAD’s “Global Information Technology Report 2014”. It has a stable economy, internet penetration of more than 90% and very good infrastructure to support the digital business. It is also well connected to the various regions around it such as the mainland Europe, Russia and North America.

Sweden accounts for 6.1% of the data centres in Europe and it is estimated that it will grow from $101 million to more than $165 million by 2019 at a CAGR of 11.2%

The region has more than 34 data centres which are being used by various companies. Recently Facebook opened its first data centre in Sweden in a town called Lulea. It is a huge data centre which will have three 300,000 square foot server buildings. This huge data centre will be cooled by using power from hydropower. As the place is cold most of the times in a year, the data centre will use the cold air blowing to cool the servers and will also use the hot air from the servers for the offices. This is a perfect example of green data centres.

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Colocation Data Centres in Sweden 3% 3%

Boras Eslov

11% 3% 6% 62%

3%

Hudiksvall Linkoping

3% 6%

Gothenburg

Lund Malmo Pitea Stockholm

As the fight against environmental pollution increases, companies are looking for new solutions for cooling their data centres. Sweden is a huge market for green data centre cooling technology. Most of the energy demand of Sweden is met by renewable energy by hydropower or wind energy. The climate in the country is generally cold or cool throughout the year. The regions to the north are very cold and temperatures drop below freezing for more than half of the year. These cold conditions can be used to cool the data centres. This will limit the use of electricity to cool down the servers.

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