Nigeria Data Center Cooling Market Size
| Study Period | 2017 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.03 Billion |
| Market Size (2030) | USD 0.1 Billion |
| CAGR (2024 - 2030) | 25.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Nigeria Data Center Cooling Market Analysis
The Nigeria Data Center Cooling Market size is estimated at USD 0.03 billion in 2024, and is expected to reach USD 0.10 billion by 2030, growing at a CAGR of 25% during the forecast period (2024-2030).
- Nigeria is swiftly solidifying its position as a key data center hub in Africa. This momentum is fueled by the nation's dedication to digital transformation and its embrace of cutting-edge technologies like IoT, big data, AI, ML, and enhanced network connectivity.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Nigeria data center market is expected to reach more than 480 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 1.7 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach above 86K units by 2030. Johannesburg is expected to house the maximum number of racks by 2030.
- Planned Submarine Cables: Many are under construction. 2Africa, which stretches over 45,000 kilometers and has landing points in Lagos, Nigeria, was estimated to start service in 2023.
- New data centers across the country are focusing on implementing state-of-the-art monitoring systems to mitigate the risks associated with extreme weather events. Many would use the latest, more energy-efficient cooling technologies, such as redundant cooling systems, smart monitoring technologies, and backup power generators, to ensure consistency of temperature in the event of power interruptions. Another example is direct liquid cooling, which uses a higher thermal transfer of water to a more efficient cooling device.
- The average winter temperature is between 32°C (90°F) and 34°C (94 °F). The average summer temperature is between 42.9°C (109.22 °F) to over 44.5 °C (112.1°F). Depending upon climatic conditions, the DC cooling is done in the DC facilities.
Nigeria Data Center Cooling Market Trends
The IT & Telecom Segment to Have Significant Market Share
- The increasing number of IoT devices, Cloud adoption, and artificial intelligence (AI) applications in the region is driving the need for robust data processing and storage capabilities. At the Huawei Cloud Startup Summit Nigeria 2024, over 150 industry startups, venture capitalists, and partners convened in Lagos to discuss startup innovation, collaboration, and digital transformation. The summit, themed "Unleash the Power of Startups," showcased Huawei Cloud's commitment to supporting 100 Nigerian startups over the next two years, providing them with cutting-edge cloud-native infrastructure, expert services, and up to USD 150,000 credit voucher for cloud adoption.
- According to the report, AWS predicts that the Nigerian market will generate an additional economic value of N30.2 trillion (~0.02 USD trillion) over the next decade (2023-2033). This boost represents 0.36 percent of Nigeria's cumulative gross domestic product (GDP) and is attributed to the accelerated adoption of cloud technologies.
- The growing internet and e-commerce adoption in finance and other industries are the key drivers for the growth of colocation services in the country as companies increasingly migrate their operations to cloud and remote servers, thus creating the demand for feasible colocation services.
- Further, Nigeria is one of the prominent West African countries for network upgradation. The country, coupled with Ethiopia, is expected to account for one-third of mobile subscribers in Sub-Saharan Africa by 2025, which will be achieved with an advanced focus on upgrading the present network technologies.
- As of March 2024, 5G connectivity subscriptions accounted for 1.24% of Nigeria's total mobile connections, according to the latest statistics from the Nigerian Communications Commission (NCC). With the total active mobile connections in Nigeria at 219 million, this 1.24% translates to approximately 2.7 million Nigerians embracing the latest 5G technology.
Liquid Cooling to Have Significant Share in the Market
- Liquid cooling offers many benefits in data centers, making it an attractive option for cooling computing environments with high performance. It is more energy-efficient than conventional air conditioning. By providing precise temperature control, it reduces the need for overcooling and improves data center energy efficiency.
- Lagos is a prominent and strategically favorable location for data center facilities in Nigeria. The region houses the majority of service providers from several end users, generating the required demand for market growth.
- In Nigeria data centers, to serve the growing requirement of data storage in the region, the key data center operators coming up with huge IT load capacities, result in generating more heat from the servers, which require cooling solutions that provide efficiency and capacity benefits. For instance, In July 2024, MTN Nigeria unveiled its ambitious project to construct West Africa's largest data center in Lagos. This state-of-the-art facility is set to feature 1,500 racks and will maintain a carrier-neutral stance, allowing connections to multiple ISPs and cloud service providers. The center is anticipated to uphold the prestigious Tier 4 standard.
- In Nigeria, companies are introducing new products to meet the diverse needs of customers. Vertiv stands out as a leading player in the sector, having been recognized as the "Most Innovative Data Centre Cooling Company of the Year" at the Nigerian Tech Industry Awards. Vertiv is addressing well-known technology challenges, optimizing service and performance, and enhancing customer experience, contributing to advancements in the ICT sector. Furthermore, the company is exploring new technologies, such as direct-to-chip cooling and immersion cooling, to improve efficiency and handle increasing power consumption in data centers.
- Furthermore, Dow introduced DOWSIL Immersion Cooling Technology - a game changer for cooling cloud and data centers. This new technology enables optimal cooling and thermal conductivity, while reducing operation costs - energizing industry advancement, and ushering forward this Green Revolution. These instances will cater to sustainable and energy efficient immersion cooling solutions in Nigeria.
Nigeria Data Center Cooling Industry Overview
The Nigerian data center cooling market is consolidated moderatley. The benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the market grow directly. Market penetration is growing with a strong presence of major players such as Stulz GmbH, Vertiv Group Corp., Schneider Electric SE, Daikin Industries, Ltd., and Mitsubishi Electric Corporation.
- In November 2023, Vertiv, the provider of critical digital infrastructure and continuity solutions, announced the company is collaborating with Intel to provide a liquid cooling solution to support the revolutionary new Intel Gaudi3 AI accelerator, scheduled to launch in 2024. The Intel Gaudi3 AI accelerator will allow for both liquid and air-cooled servers to be operated by the VertivTM-pumped two-stage cooling infrastructure.
Nigeria Data Center Cooling Market Leaders
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Stulz GmbH
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Vertiv Group Corp.
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Schneider Electric SE
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Daikin Industries, Ltd.
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Mitsubishi Electric Corporation
*Disclaimer: Major Players sorted in no particular order
Nigeria Data Center Cooling Market News
- May 2024: Rittal, in collaboration with multiple hyperscale data center operators, developed a modular cooling system. This solution boasts a cooling capacity exceeding 1 MW, achieved through direct water cooling. It is specifically tailored to cater to the high-power densities of AI applications.
- May 2024: Stulz unveiled its latest innovation, the CyberCool Coolant Management and Distribution Unit (CDU), specifically engineered to optimize heat exchange efficiency in liquid cooling solutions. The product line comprises four models, available in two distinct sizes. These units boast an impressive heat exchange capacity, ranging from 345 kW to 1,380 kW. Stulz has set the rated water supply temperature for the facility water system at 32°C (89.6°F), with the liquid supply temperature for the technology cooling system pegged at 36°C (96.8°F)
Nigeria Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope Of The Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Key cost considerations for Cooling
4.2.1 Analysis of the key cost overheads related to DC operations with an eye on DC Cooling
4.2.2 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)
4.2.3 Key innovations and developments in Data Center Cooling
4.2.4 Key energy efficiency practices adopted in Data Centers
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Government initiatives and rising demand for digitalization are propelling market growth.
5.1.2 Increasing Cloud based businesses drives the demand for the studied market
5.2 Market Challenges
5.2.1 Dynamic nature of regulations on cooling solutions
5.3 Market Opportunities
5.3.1 Adoption of AI in the Country Drives the Demand for Studied Market
5.4 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN THE COUNTRY
6.1 Analysis of IT Load Capacity & Area footprint of Data Centers (for the period of 2017-2030)
6.2 Analysis of the current DC hotspots and scope for future expansion in the Country
6.3 Analysis of major Data Center Contractors and Operators in the Country
7. MARKET SEGMENTATION
7.1 By Cooling Technology
7.1.1 Air-based Cooling
7.1.1.1 Chiller and Economizer
7.1.1.2 CRAH
7.1.1.3 Cooling Tower (covers direct, indirect & two-stage cooling)
7.1.1.4 Others
7.1.2 Liquid-based Cooling
7.1.2.1 Immersion Cooling
7.1.2.2 Direct-to-Chip Cooling
7.1.2.3 Rear-Door Heat Exchanger
7.2 By Type
7.2.1 Hyperscalers (owned & Leased)
7.2.2 Enterprise (On-premise)
7.2.3 Colocation
7.3 By End user Vertical
7.3.1 IT & Telecom
7.3.2 Retail & Consumer Goods
7.3.3 Healthcare
7.3.4 Media & Entertainment
7.3.5 Federal & Institutional agencies
7.3.6 Other end-users
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Stulz GmbH
8.1.2 Vertiv Group Corp.
8.1.3 Schneider Electric SE
8.1.4 Daikin Industries, Ltd.
8.1.5 Mitsubishi Electric Corporation
8.1.6 Rittal GmbH & Co. KG
8.1.7 Johnson Controls International PLC
8.1.8 Huawei Digital Power Technologies Co., Ltd.
8.1.9 Alfa Laval AB
8.1.10 GIGA-BYTE Technology Co., Ltd.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Nigeria Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. This is important because data centers 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 Nigerian Data Center cooling market study comprises by Technology (Air-based cooling (Chiller and Economizer, CRAH, Cooling Towers and Others), Liquid-based cooling (Immersion Cooling, Direct-to-chip Cooling, Rear-Door Heat Exchanger)), Type of Data Center (Hyperscaler, Enterprise and Colocation) , by End-User Industry (IT & Telecom, Retail & Consumer Goods, Healthcare, Media & Entertainment, Federal & Institutional agencies, and Other end-users).
| By Cooling Technology | ||||||
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| By Type | |
| Hyperscalers (owned & Leased) | |
| Enterprise (On-premise) | |
| Colocation |
| By End user Vertical | |
| IT & Telecom | |
| Retail & Consumer Goods | |
| Healthcare | |
| Media & Entertainment | |
| Federal & Institutional agencies | |
| Other end-users |
Nigeria Data Center Cooling Market Research Faqs
How big is the Nigeria Data Center Cooling Market?
The Nigeria Data Center Cooling Market size is expected to reach USD 0.03 billion in 2024 and grow at a CAGR of 25% to reach USD 0.1 billion by 2030.
What is the current Nigeria Data Center Cooling Market size?
In 2024, the Nigeria Data Center Cooling Market size is expected to reach USD 0.03 billion.
Who are the key players in Nigeria Data Center Cooling Market?
Stulz GmbH, Vertiv Group Corp., Schneider Electric SE, Daikin Industries, Ltd. and Mitsubishi Electric Corporation are the major companies operating in the Nigeria Data Center Cooling Market.
What years does this Nigeria Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Nigeria Data Center Cooling Market size was estimated at USD 0.02 billion. The report covers the Nigeria Data Center Cooling Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Nigeria Data Center Cooling Industry Report
Statistics for the 2024 Nigeria Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Nigeria Data Center Cooling analysis includes a market forecast outlook for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Nigeria Data Center Cooling Market Report Snapshots
