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.

Market Size of Africa Data Center Cooling Industry

Africa Data Center Cooling Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 0.1 Billion
Market Size (2030) USD 0.6 Billion
CAGR (2024 - 2030) 31.56 %
Market Concentration Medium

Major Players

Africa Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Data Center Cooling Market Analysis

The Africa Data Center Cooling Market size is estimated at USD 0.1 billion in 2024, and is expected to reach USD 0.6 billion by 2030, growing at a CAGR of 31.56% during the forecast period (2024-2030).

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 3,182 MW by 2030.

Under Construction Raised Floor Space: The region's construction of raised floor area is expected to increase by 11.4 million sq. ft by 2030.

Planned Racks: The region's total number of racks to be installed is expected to reach 570K units by 2030. South Africa is expected to house the maximum number of racks by 2030.

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 km, 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 into cooling technology (air-based cooling [CRAH, chillers and economizers, and cooling towers] and liquid-based cooling [immersion cooling and direct-to-chip cooling], end-user industry (IT and telecommunication, BFSI, government, and media and entertainment), and country (South Africa, Nigeria, and Rest of Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Cooling Technology
Air-based Cooling
Chiller and Economizer
CRAH
Cooling Tower (covers direct, indirect, and two-stage cooling)
Other Air-based Cooling Technologies
Liquid-based Cooling
Immersion Cooling
Direct-to-Chip Cooling
Rear-Door Heat Exchanger
By Type
Hyperscalers (owned & Leased)
Enterprise (On-premise)
Colocation
By End-user Industry
IT & Telecom
Retail & Consumer Goods
Healthcare
Media & Entertainment
Federal & Institutional agencies
Other End-user Industries
By Country
Nigeria
South Africa
Rest of Africa
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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 INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Key cost considerations for Cooling

      1. 1.2.1 Analysis of the key cost overheads related to DC operations with an eye on DC Cooling

      2. 1.2.2 Comparative Study of the cost and operational considerations related to each Cooling technology based on key factors such as design complexity, PUE, advantages, drawbacks, extent of utilization of natural weather conditions)

      3. 1.2.3 Key innovations and developments in Data Center Cooling

      4. 1.2.4 Key energy efficiency practices adopted in Data Centers

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Cooling Technology

      1. 2.1.1 Air-based Cooling

        1. 2.1.1.1 Chiller and Economizer

        2. 2.1.1.2 CRAH

        3. 2.1.1.3 Cooling Tower (covers direct, indirect, and two-stage cooling)

        4. 2.1.1.4 Other Air-based Cooling Technologies

      2. 2.1.2 Liquid-based Cooling

        1. 2.1.2.1 Immersion Cooling

        2. 2.1.2.2 Direct-to-Chip Cooling

        3. 2.1.2.3 Rear-Door Heat Exchanger

    2. 2.2 By Type

      1. 2.2.1 Hyperscalers (owned & Leased)

      2. 2.2.2 Enterprise (On-premise)

      3. 2.2.3 Colocation

    3. 2.3 By End-user Industry

      1. 2.3.1 IT & Telecom

      2. 2.3.2 Retail & Consumer Goods

      3. 2.3.3 Healthcare

      4. 2.3.4 Media & Entertainment

      5. 2.3.5 Federal & Institutional agencies

      6. 2.3.6 Other End-user Industries

    4. 2.4 By Country

      1. 2.4.1 Nigeria

      2. 2.4.2 South Africa

      3. 2.4.3 Rest of Africa

Africa Data Center Cooling Market Size FAQs

The Africa Data Center Cooling Market size is expected to reach USD 0.1 billion in 2024 and grow at a CAGR of 31.56% to reach USD 0.6 billion by 2030.

In 2024, the Africa Data Center Cooling Market size is expected to reach USD 0.1 billion.

Africa Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)