Data Center Containment Market - By Containment (Aisle, Chimney, Curtain), By Data Center (Enterprise, Colocation, Hyperscale), By Arrangement (Soft Containment, Rigid Containment, Hybrid Containment, Modular Containment), By Application & Forecast, 2024 – 2032

Data Center Containment Market Size

Data Center Containment Market was valued at USD 1.2 billion in 2023 and is estimated to register a CAGR of over 10.5% between 2024 and 2032. The market is experiencing rapid growth, driven by several factors such as increasing data generation and storage needs, cost reduction, rising adoption of cloud services, regulatory compliance, and data security.
 

For instance, in November 2023, Facebook announced the expansion of its data centers in the U.S. to accommodate the increasing data from its platforms, illustrating the growing need for data center capacities due to data generation from various sectors such as social media, e-commerce, and IoT devices. Rising energy costs and the push for sustainable data centers are also factors driving the adoption of containment solutions. For instance, in June 2023, Google announced a new AI-powered cooling system for its data centers that leverages containment strategies to optimize airflow and reduce energy consumption by up to 40%.
 

The data center containment market is experiencing growth due to the deployment of 5G networks, which increases data transmission speeds and volume, necessitating upgraded and new data centers to handle the enhanced load. Also, governments and private sectors are heavily investing in data center infrastructure to support the growing digital economy. The rise in colocation services, where businesses rent space for their servers and other computing hardware in a third-party data center, drives the need for advanced containment solutions to ensure efficient and cost-effective operations.
 

The market faces several pitfalls and challenges that can impede its growth and efficiency. Containment solutions help with cooling and managing airflow, but they do not fix deeper issues such as energy waste or overusing equipment. Simply adding containment will not lead to lasting improvements or significant energy savings without a comprehensive approach. Another notable challenge is the rapid pace of technological change, which can make current containment solutions quickly outdated. The reliance on advanced technologies, such as AI, for optimizing containment systems introduces risks related to cybersecurity and operational reliability. Any malfunction or cyber-attack on these systems can lead to significant operational disruptions and financial losses.
 

Data Center Containment Market Trends

Recent trends in the data center containment industry include the growing adoption of AI-driven cooling systems, increased emphasis on sustainability, and the integration of modular and scalable containment solutions. These trends are driven by the need for enhanced energy efficiency, cost reduction, and environmental responsibility. Companies are increasingly implementing AI and ML technologies to optimize cooling and airflow management, significantly reducing energy consumption and operational costs. Modular containment solutions are gaining popularity due to their flexibility and scalability.
 

Rapid economic growth and urbanization is leading to increased demand for data services, further boosting the need for advanced data center containment solutions. Hyperscale data centers are becoming more prevalent with the increasing demand for cloud services. Data center operators are paying more attention to airflow management within containment systems to prevent hot spots and ensure uniform cooling throughout the facility. Some facilities are turning to liquid cooling solutions to manage heat more effectively as data center densities increase. Containment systems are evolving to accommodate these liquid cooling technologies.
 

Data Center Containment Market Analysis

Based on containment, the market is divided into aisle containment, chimney containment, curtain containment, and others. In 2023, the aisle containment segment was valued at over USD 700 million in 2023. The aisle containment market growth in the market is increasing due to rising energy costs and environmental concerns pushing data center operators toward energy-saving solutions. Aisle containment, particularly hot aisle/cold containment, optimizes airflow management, leading to significant reductions in cooling energy consumption. Aisle containment helps manage heat dissipation effectively in high-density environments. It is increasingly designed with modularity and scalability in mind. For instance, in April 2024, Schneider Electric unveiled its new line of modular aisle containment systems. These systems offer flexible configurations to cater to diverse data center layouts and changing requirements.
 

Based on data center, the market is categorized into enterprise data center, colocation data center, hyperscale data center, and others. The enterprise data center segment is anticipated to register a CAGR of over 9% from 2024 to 2032. The adoption of hot and cold aisle containment solutions, as well as chimney or ducted containment systems, has gained significant traction in enterprise data centers. These containment methods help organizations achieve better thermal management, enhance operational efficiency, and meet sustainability goals by minimizing energy waste. Additionally, the increasing focus on data center modernization and the need for scalable infrastructure have driven the demand for modular and flexible containment solutions that can adapt to evolving business needs. As enterprises prioritize cost savings, energy efficiency, and operational resilience, the market is poised to witness substantial growth driven by the evolving requirements of enterprise data centers.
 

North America dominated the global data center containment market with a major share of over 40% in 2023. The widespread adoption of cloud services in North America necessitates large and efficient data centers. Hyperscale data centers, which are massive facilities owned and operated by technology giants, such as Google, Amazon, and Microsoft, continue to proliferate. These facilities require advanced containment solutions to manage airflow and cooling efficiently across vast server footprints.
 

The exponential growth of data consumption, driven by trends such as cloud computing, big data, IoT, and streaming services, necessitates the construction of more data centers. The demand for containment solutions to optimize cooling and energy efficiency rises with data center capacity expanding. Technologies, such as AI, ML, and IoT, are increasingly adopted by North America. For instance, in March 2024, Eaton introduced the SmartRack modular data center solution, designed for rapid deployment to meet the demands of edge computing, AI, and ML. This solution integrates IT racks, cooling systems, and service enclosures, providing a comprehensive and efficient infrastructure for critical IT loads.
 

The rapid increase in data center construction across Europe is a major growth driver of the data center containment industry. Innovations in High-performance Computing (HPC) and the rising demand for scalable, reliable, and efficient storage solutions are contributing to market expansion. Markets, such as Germany, the UK, and France, play a major role in the market growth. Aisle containment contributes to improved physical security and environmental control for sensitive data stored in European data centers.
 

In the Asia Pacific region, the data center containment industry is experiencing growth due to digital transformation and increased data demand. The surge in e-commerce activities and the widespread adoption of cloud computing services have led to an increased demand for data centers. Significant foreign investments are also boosting the market. Countries, such as China, India, Malaysia, and Indonesia, are seeing rapid growth due to these factors. For instance, in April 2024, in Indonesia, EdgeConneX secured a USD 403.8 million investment to develop a 120 MW hyper-scale data center campus in Jakarta. This expansion is fueled by Indonesia's growing digital economy and increasing data demands.
 

Data Center Containment Market Share

Vertiv, Schneider Electric, and Legrand held significant market share of over 12% market share in 2023. These major players in the data center containment industry compete fiercely by providing comprehensive data center containment solutions. Vertiv excels with its comprehensive solutions and global reach, driving innovations through advanced products such as the smartaisle system. With various acquisitions and partnerships, the company has enhanced its product portfolio and market reach.
 

Schneider Electric integrates its containment systems with power, cooling, and monitoring solutions to offer end-to-end support for data centers. The global presence of the company caters to a diverse customer base. Its strong focus on sustainability and energy efficiency aligns with the growing demand for green data centers. This strategic combination of innovations, comprehensive solutions, global operations, and sustainability commitments positions these companies as leaders in the market.
 

Data Center Containment Market Companies

Major players operating in the data center containment industry are:

• Chatsworth Products, Inc.
• Eaton Corporation plc
• Emerson Network Power Co., LLC
• Legrand S.A.
• nVent Electric plc
• Rittal GmbH & Co. KG
• Schneider Electric SE
• Schroff GmbH
• Subzero Engineering, Inc.
• Vertiv Holdings Company
   

Data Center Containment Industry News

• In June 2024, Subzero Engineering, Inc partnered with Armstrong World Industries to introduce a combined data center containment and structural ceiling solution. This collaboration aimed to deliver high-strength, flexible, and quick-to-install containment systems, enhancing efficiency and reducing costs for data center operators in the U.S. market.
   
• In May 2024, Upsite Technologies, Inc. expanded its KoldLok product line with new solutions aimed at improving data center cooling efficiency. This included the KoldLok Mini Raised Floor Grommet, designed to optimize airflow management and reduce cooling costs.
   

The data center containment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2032, for the following segments:

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Market, By Containment

• Aisle containment
  • Hot aisle containment
  • Cold aisle containment
• Chimney containment
• Curtain containment
• Others

Market, By Data Center

• Enterprise data centers
• Colocation data centers
• Hyperscale data centers
• Others

Market, By Arrangement

• Soft containment
• Rigid containment
• Hybrid containment
• Modular containment

Market, By Application

• BFSI
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Retail & Ecommerce
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Argentina
  • Colombia
  • Chile
  • Rest of Latin America 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA