Hyperscale Migration to Liquid Cooling to Boost APAC Data Center Cooling Market to USD 3.37 Billion Investment in 2027

China leads the Asia Pacific data center cooling market and is expected to grow at a CAGR of 5.07% during the forecast period. In China, investments are led by internet, cloud, and telecommunication service providers. Alibaba, China Unicom, China Telecom, Baidu, Tencent, and China Mobile are leading companies in the region. In China, smart cities are also being developed so that regional investments will rise. For instance, Alibaba, a cloud service provider, has developed a smart city in Hangzhou called City Brain. The smart city was designed to improve the economy, environment, and energy consumption and monitor traffic congestion. The use of AI has helped it reduce traffic by 15%. In China, most facilities are designed to cool servers using water-based cooling techniques. The growing construction of facilities will propel the adoption of developed multiple chillers, cooling towers, and CRAH units in the country.

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In Singapore, increased deployment of AI and ML workloads will increase liquid-immersion and direct-to-chip cooling. Data centers with a deployed rack power density of over 20–30 kW will use direct-to-chip cooling. Apart from cryptocurrency and scientific research, even complex artificial intelligence and machine learning applications are increasingly requiring direct-to-chip and liquid immersion cooling in data centers. Vendors have also started innovations in design and technology used by the cooling systems they are offering. The market for direct liquid cooling and immersion cooling solutions is expected to become more competitive with the growing adoption of HPC infrastructure for AI and ML workloads among data centers. Initiatives such as Open Commute Projects are expected to bring several new cooling techniques and technologies to the market, thereby creating more competition among vendors. Datacenter operators are on the lookout for vendors providing systems with real-time monitoring and management solutions.

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