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Africa Data Center Cooling Market Size (2024 - 2029)

The Africa Data Center Cooling Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing, government regulations for local data security, and rising investments by domestic players. The market's expansion is further supported by the development of IT load capacity, raised floor space, and the installation of racks, with South Africa anticipated to host the majority of these facilities. The choice of cooling technology is influenced by the region's geographic diversity and climate variability, which poses challenges due to Africa's reliance on rain-fed agriculture. Additionally, the connectivity infrastructure is set to improve with the construction of submarine cables, enhancing data center capabilities across the continent.

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Market Size of Africa Data Center Cooling Industry

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Africa Data Center Cooling Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 240.70 Million
Market Size (2029) USD 505.20 Million
CAGR (2024 - 2029) 15.40 %
Market Concentration Medium

Major Players

Africa Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Africa Data Center Cooling Market Analysis

The Africa Data Center Cooling Market size is estimated at USD 240.70 million in 2024, and is expected to reach USD 505.20 million by 2029, growing at a CAGR of 15.40% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in Africa.

Under Construction IT Load Capacity: The upcoming IT load capacity of the African data center construction market is expected to reach 1,226 MW by 2029.

Under Construction Raised Floor Space: The region's construction of raised floor area is expected to increase 5.2 million sq. ft by 2029.

Planned Racks: The region's total number of racks to be installed is expected to reach 260K units by 2029. South Africa is expected to house the maximum number of racks by 2029.

Average temperatures in Africa range from 15°C to 36°C in summer and -2°C to 26°C in winter. Africa's heavy reliance on rain-fed agriculture makes it highly vulnerable to climate variability and change. The choice of cooling technology is typically based on the geographic location of the data center.

Planned Submarine Cables: Close to 70 submarine cable systems connect Africa; many are under construction. One submarine cable expected to begin service in 2024 is Africa-1, spanning over 10,000 kilometers with a landing point in Port Said, Egypt, and Ras Ghareb, Egypt.

Africa Data Center Cooling Industry Segmentation

Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.

The African data center cooling market is segmented by cooling technology (air-based cooling (CRAH, chillers and economizers, and cooling towers), liquid-based cooling (immersion cooling and direct-to-chip cooling), and end user (IT & telecommunication, BFSI, government, and media & entertainment), and country (South Africa, Nigeria, and Rest of Africa). The market sizes and forecasts are provided in terms of value for all the above segments.

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Africa Data Center Cooling Market Size Summary

The Africa Data Center Cooling Market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The region's data center infrastructure is expanding rapidly, with South Africa, Nigeria, and Egypt leading in smartphone connections and digital wallet usage, which are contributing to the surge in data consumption. The rollout of 5G services and the expansion of fiber optic networks are further propelling the need for advanced data center facilities, particularly Tier 3 and Tier 4 centers, to support the burgeoning digital services and IoT environments across the continent. This growth is also fueled by the need for data localization, prompting cloud aggregators to establish data centers in Africa, thereby enhancing the attractiveness of regional investments.

The competitive landscape of the African data center cooling market is marked by the presence of major players such as Schneider Electric SE, Daikin Industries Ltd, and Johnson Controls International PLC, who are driving innovation in cooling technologies. The market is witnessing a shift towards advanced solutions like liquid-based and portable cooling systems, catering to the high-power demands of modern applications, including AI. Recent developments, such as Rittal's modular cooling system and Carrier Global Corporation's direct-to-chip cooling technology, highlight the industry's focus on meeting the increasing cooling requirements of data centers. As the number of data centers continues to rise, so does the demand for efficient cooling equipment, ensuring the region's infrastructure can support its rapid digital transformation.

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Africa Data Center Cooling Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Trend of High-Performance Computing across Europe

      2. 1.2.2 Growing Rack Power Density

    3. 1.3 Market Restraints

      1. 1.3.1 High Initial Investments

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of the COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Cooling Technology

      1. 2.1.1 Air-based Cooling

        1. 2.1.1.1 CRAH

        2. 2.1.1.2 Chiller and Economizer

        3. 2.1.1.3 Cooling Tower

        4. 2.1.1.4 Other Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

        1. 2.1.2.1 Immersion Cooling

        2. 2.1.2.2 Direct-to-chip Cooling

    2. 2.2 End User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End Users

    3. 2.3 Country

      1. 2.3.1 South Africa

      2. 2.3.2 Nigeria

Africa Data Center Cooling Market Size FAQs

The Africa Data Center Cooling Market size is expected to reach USD 240.70 million in 2024 and grow at a CAGR of 15.40% to reach USD 505.20 million by 2029.

In 2024, the Africa Data Center Cooling Market size is expected to reach USD 240.70 million.

Africa Data Center Cooling Market Report Snapshots

Africa Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)