Impact of COVID-19 on the Global Data Center Cooling Market
Datacenter cooling systems are being widely implemented across several industry verticals. The proliferation of data centers due to the growing usage of advanced networks such as 4G LTE is expected to propel the demand for data center cooling systems to cool equipment and infrastructure. Such types of cooling solutions help in monitoring and controlling temperatures in data centers and keeping them within permissible limits. The equipment and machinery used in data centers process high volumes of data resulting in increased heating. Thus, the need for reducing equipment and ambient temperatures drives the global demand for data center cooling. Future opportunities in digitalization and the penetration of advanced technologies, including big data and cloud computing in various industries such as IT & telecom, retail, media & entertainment, government & defense, energy, and healthcare, are likely to support the demand for data storage and processing, in turn, stimulating the growth of the data center cooling market over the projected timeframe.
The demand for data center cooling systems has been steady during the COVID-19 pandemic. However, this requirement is expected to grow with the increased focus of the industry players on data solutions owing to full/partial lockdowns imposed worldwide. The lockdowns have resulted in severe losses to businesses worldwide. The implementation of the lockdowns for suppressing the spread of the pandemic has placed restrictions on public gatherings at international events, concerts, and theatres, which is hampering the market growth. However, government support is projected to stimulate the growth of the data center cooling market over the forecast timeframe. Moreover, the market is showing a substantial recovery rate, which is attributed mainly to the wide adoption of remote working policies by industry players to prevent the spread of COVID-19 at workplaces. However, the industry is certainly expected to face challenges owing to the long-term effects of the COVID-19 pandemic.