Germany Data Center Cooling Market

Germany Data Center Cooling Market Analysis

The Germany Data Center Cooling Market size is estimated at USD 0.58 billion in 2025, and is expected to reach USD 1.30 billion by 2031, at a CAGR of 14.3% during the forecast period (2025-2031).

• The German government passed a draft of the Energy Efficiency Act in April 2023, which is now being debated in parliament. Section four of the draft is dedicated in detail to new requirements for the energy efficiency of data centers. According to the draft, newly built data centers must comply with energy efficiency standards, ensure a minimum temperature for air cooling, and use the waste heat they generate.
• The upcoming IT load capacity of the German data center market is expected to reach more than 1,900 MW by 2030. The country's construction of raised floor area is expected to increase to more than 11.8 million sq. ft by 2030.
• The country's total number of racks to be installed is expected to reach more than 589K units by 2030. Frankfurt is expected to house the maximum number of racks by 2030. Close to 7 submarine cable systems are connecting Germany, and many are under construction.
• In terms of development, in July 2023, Prysmian Group inked a service level agreement with the German-Dutch transmission system operator TenneT to provide nearshore and offshore cable inspection, maintenance, and repair services for TenneT's HVDC and HVAC submarine power cables in the North Sea. The agreement will be fulfilled in partnership with N-Sea.

Germany Data Center Cooling Market Trends

IT and Telecom to Hold Significant Share

• To oversee and champion digital transformation, the telecommunications industry is leaning toward institutionalization, positioning this evolution as a cornerstone for nurturing the digital economy and society. In Germany, the telecommunications industry grapples with a pressing issue: network congestion. As digital technologies surge and the appetite for high-speed internet grows, the current infrastructure struggles to keep pace. Consequently, this scenario is poised to spur a heightened demand for data center construction and innovative cooling solutions.
• Germany is actively addressing these challenges. A key strategy involves investing in new infrastructure, including fiber-optic cables and 5G networks. These advanced technologies promise faster speeds and increased capacity, effectively alleviating network congestion.
• Regulatory and policy measures can effectively tackle network congestion. A case in point is Germany's national broadband strategy, introduced by the government, which targets universal high-speed internet access for its citizens by 2025. The strategy encompasses funding for infrastructure projects, including data centers, and initiatives designed to foster competition among telecom providers.
• In 2024, Deutsche Telekom plans to extend its services to an additional 2.5 million customers annually. The company targets achieving 60% fiber-to-premises (FTTP) coverage on its infrastructure by 2030. This expansion is driving a significant surge in network traffic, consequently boosting the demand for servers and cooling solutions.

Liquid Cooling to Hold Significant Growth

• As data centers evolve, efficient cooling solutions become paramount to ensure optimal performance and manage the rising heat loads from contemporary IT equipment. Liquid cooling systems have emerged as a prominent technology in this domain.
• Air cooling alone cannot ensure the reliability of IT systems in facilities with exceptionally high-density racks, typically exceeding 30 kW, regardless of their age or optimization. In these facilities, rack power demands are nearing 20 kW, and companies are targeting 50 kW or higher. Therefore, liquid cooling is transitioning from an option to an absolute necessity. Notably, facilities like Cyrusone's Frankfurt 5 and Interxion's FRA-17, both under construction, are designed to accommodate this high rack density.
• In May 2023, a new draft proposed reducing heat reuse mandates, starting with a 10% heat reuse target in 2026 and ramping up to 20% by 2028. The GDA highlighted the need for adjustments, pointing out the variability in waste heat demand and the challenge of siting data centers near heating networks. The forthcoming act is poised to eliminate the stipulation mandating all data centers be within 5 km of a heating network. Instead, data centers can meet the requirement by equipping new facilities with a heat transfer station, making them ready to offer waste heat. However, achieving this will necessitate robust cooling solutions, like water-based cooling, to ensure stability during heat generation and transfer.
• Moreover, cloud infrastructure allows users to retrieve their files from anywhere in the world. Approximately 83% of companies in Germany utilize cloud services. Among these, 46% have reached an advanced stage of cloud implementation, 38% are just starting, and the remaining 16% have yet to adopt cloud solutions. As cloud infrastructure expands, it is anticipated that the demand for data centers will rise, subsequently boosting the need for water-cooling solutions.

Germany Data Center Cooling Industry Overview

The German data center cooling market exhibits a moderate level of consolidation among key industry players, having sharpened their competitive edge in recent years. Notable market leaders in this segment include Alfa Laval AB, STULZ GmbH, Schneider Electric SE, Vertiv Group Corp., and Daikin Applied Europe SpA. These industry giants, boasting significant market shares, are actively engaged in expanding their customer base throughout the region. Their growth strategies primarily hinge on strategic collaborative efforts aimed at enhancing market share and overall profitability. Moreover, companies such as Schneider Electric SE and Vertiv Group Corp. offer liquid and air-based cooling products.

Germany Data Center Cooling Market Leaders

Germany Data Center Cooling Market News

• May 2024: Carrier Germany showcased its comprehensive lineup of devices and services to ensure sustainable and efficient air conditioning for data centers.
• March 2024: Carrier unveiled a new line of high-performance chillers tailored for data centers. These chillers aim to minimize energy consumption and carbon emissions while lowering operational costs for users.