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MEA Data Center Cooling Market Size (2024 - 2029)

The Middle East and Africa data center cooling market is poised for significant expansion, driven by economic development and increased investments in the ICT sector. The region's focus on building digital infrastructure to support automation across various industries, such as financial services and telecommunications, is fueling this growth. The entry of major cloud players into the market further underscores the potential for increased demand for cooling solutions, particularly due to the region's challenging weather conditions. Additionally, Africa is emerging as a promising area for data center development, responding to the rising need for colocation and hosting services. Despite economic challenges posed by events like COVID-19 and fluctuating oil prices, the demand for data center cooling remains robust, driven by the shift towards remote working and the growing reliance on IT infrastructure.

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Market Size of MEA Data Center Cooling Industry

Middle East And Africa Data Center Cooling Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.60 %
Market Concentration Medium

Major Players

Middle East And Africa Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

MEA Data Center Cooling Market Analysis

The Middle East and Africa Cooling market is expected to grow at a CAGR of 9.6% during the forecast period. Further, the market is expected to witness and steady growth with an increase in economic development and investments in the ICT industry in the MEA region.

  • The market in the region is driven by a consistent storm of government and enterprise, developing a digital infrastructure to support automation adoption across a variety of end-user verticals, including financial services, telecommunications retail, and manufacturing.
  • Many major cloud players are entering the region to grab the opportunity of this untapped market. Hence this will also develop the demand for data center cooling. Additionally, the regional weather also makes cooling solutions a priority for data centers.
  • Africa is emerging as a potential market for data centers. Africa Data Centers, a subsidiary of Liquid Telecom, has fitted out another floor for adding enough space for another 160 racks in its facility in Nairobi, Kenya. The newly-opened floor is a direct response to the massive demand for colocation and hosting services in Africa.
  • The dual effects of COVID-19 and sharp oil price reduction have had manifold economic consequences across the Gulf region. Despite the downturn, one sector of the economy, namely internet service providers (ISPs), information technology (IT) infrastructure providers, and data centers, has seen demand increase primarily as a result of the shift towards home and remote working. This indicates the rising demand for the Data center cooling market in the region.

MEA Data Center Cooling Industry Segmentation

The cooling technologies considered under the scope of the study are Room Air Conditioning/Computer Room Air Handler units used for room-level cooling. The company also used advanced solution that includes evaporative/adiabatic cooling, direct liquid cooling/immersion cooling, and economizer segment/free cooling.

The study also covers the qualitative and quantitative analysis of the market in a different region of the Middle East market. The study also covers the impact of Covid-19 on the industry.

By Solution
Air Conditioners/Handlers
Row/Rack/Door/Overhead Cooling Systems
Chillers
Liquid Cooling Systems
Economizer Systems
By Service
Installation and Deployment
Consulting, Support and Maintenance Services
By End-User Vertical
Information Technology
BFSI
Telecommunication
Healthcare
Government
Other End-User Verticals
By Country
United Arab Emirates
Saudi Arabia
South Africa
Rest of MENA
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MEA Data Center Cooling Market Size Summary

The Middle East and Africa data center cooling market is poised for significant growth, driven by economic development and increased investments in the ICT sector. The region's market is bolstered by the expansion of digital infrastructure to support automation across various sectors such as financial services, telecommunications, retail, and manufacturing. The entry of major cloud players into the region is further stimulating demand for data center cooling solutions, which are essential due to the region's climatic conditions. Africa, in particular, is emerging as a promising market, with companies like Africa Data Centers expanding their facilities to meet the rising demand for colocation and hosting services. The shift towards remote working, accelerated by the COVID-19 pandemic and economic fluctuations, has also heightened the need for data center cooling in the Gulf region.

In Saudi Arabia, the demand for data centers has surged, driven by the country's Vision 2030 objectives and the influx of major IT and healthcare firms. This has led to the establishment of numerous colocation data centers and cloud footprints, necessitating advanced cooling solutions. The healthcare sector's digitization, including the adoption of electronic medical records and telemedicine, has further contributed to the data surge, increasing the demand for cooling technologies. The market is moderately fragmented, with key players like Schneider Electric, Daikin Industries, and Johnson Controls dominating. Partnerships and strategic investments, such as SAP's collaboration with Tabreed and the Saudi government's large-scale data center plans, are enhancing market presence and driving innovation in cooling solutions.

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MEA Data Center Cooling Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Assessment of Impact of COVID-19 on the Industry

    3. 1.3 Market Drivers

      1. 1.3.1 Development in IT Infrastructure in the Emerging Countries

      2. 1.3.2 Emergence of Green Data Centers

    4. 1.4 Market Restraints

      1. 1.4.1 Adaptability Requirements and Power Outages

    5. 1.5 Industry Policies

    6. 1.6 Industry Value Chain Analysis

    7. 1.7 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Buyers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Solution

      1. 2.1.1 Air Conditioners/Handlers

      2. 2.1.2 Row/Rack/Door/Overhead Cooling Systems

      3. 2.1.3 Chillers

      4. 2.1.4 Liquid Cooling Systems

      5. 2.1.5 Economizer Systems

    2. 2.2 By Service

      1. 2.2.1 Installation and Deployment

      2. 2.2.2 Consulting, Support and Maintenance Services

    3. 2.3 By End-User Vertical

      1. 2.3.1 Information Technology

      2. 2.3.2 BFSI

      3. 2.3.3 Telecommunication

      4. 2.3.4 Healthcare

      5. 2.3.5 Government

      6. 2.3.6 Other End-User Verticals

    4. 2.4 By Country

      1. 2.4.1 United Arab Emirates

      2. 2.4.2 Saudi Arabia

      3. 2.4.3 South Africa

      4. 2.4.4 Rest of MENA

MEA Data Center Cooling Market Size FAQs

The MEA Data Center Cooling Market is projected to register a CAGR of 9.60% during the forecast period (2024-2029)

Schneider Electric SE, Daikin Industries Ltd, Johnson Controls International Plc, Mitsubishi Electric Corporation and Munters Group AB are the major companies operating in the MEA Data Center Cooling Market.

MEA Data Center Cooling Report Snapshots

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