Market Trends of MEA Data Center Cooling Industry
This section covers the major market trends shaping the MEA Data Center Cooling Market according to our research experts:
Healthcare to Show Significant Growth
- Digitization of consumer health records in the form of electronic medical records (EMR) contributes to data increment. The latest innovations in the medical equipment and modernization of legacy operating systems, such as management of personnel, improvement in the patient response systems, etc., generate a multitude of data, further necessitating the need for data centers. This need for data centers, in turn, drives the demand for data center cooling.
- With digitization creating the most significant impact, investment in healthcare technology
has been considered as a key priority. According to a report published by Omnia Health Insights in June 2020, telemedicine was also identified as a crucial development for clinics and medical practices, particularly those with a turnover of USD 5-10 million, and more so in the GCC and the Middle East than other regions. - For instance, in July 2020, TVM Capital Healthcare raised a second growth capital fund focused on investment in the Gulf. The new fund will have a strong focus on the GCC, but also Saudi Arabia specifically. For its new Gulf-focused fund, the company will look to invest in all areas of health care, except for general hospitals. This has further increased the generation of data records of patients, and in turn, increased the demand for data center cooling technologies in the region.
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Saudi Arabia to Hold the Highest Market Share
- Saudi Arabia has recently become one of the technology hubs of the Middle East and Africa region. With major IT and Healthcare firms gaining access to the market, there has been a steep increase in demand for data centers in the region such that the companies can keep their data within the boundaries of the country.
- Further, Saudi Arabia’s Vision 2030 objectives have led to the technology giants, like Google, Microsoft, and IBM, setting up data centers in the country, with plans to extend the facilities as well.
- Currently, six areas of the country offer 22 colocation data centers for several private and public enterprises across the globe. Further, in January 2021, BIOS Middle East, a leading provider of cloud and managed IT services in the Middle East, announced it has established two new cloud footprints in Riyadh and Jeddah to serve customers in the Kingdom of Saudi Arabia. Such instances are expected to increase the demand for data center cooling solutions in the country.
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