Nigeria Data Center Cooling Market Size (2024 - 2029)

The Nigeria Data Center Cooling Market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium enterprises, government regulations for local data security, and rising investments by domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the construction of IT load capacity, raised floor space, and the installation of racks. Additionally, the market is adopting advanced cooling technologies to address challenges posed by extreme weather conditions, ensuring efficient temperature management and operational consistency.

Market Size of Nigeria Data Center Cooling Industry

Nigeria Data Center Cooling Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 3.85 Million
Market Size (2030) USD 12.25 Million
CAGR (2024 - 2030) 20.30 %
Market Concentration High

Major Players

Nigeria Data Center Cooling Market 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 3.85 million in 2024, and is expected to reach USD 12.25 million by 2030, growing at a CAGR of 20.30% 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 major factors driving the demand for data centers.
  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Nigeria data center market is expected to reach more than 226.7 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 0.6 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach above 32,389 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
  • 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 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 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 evaporative cooling) and end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Cooling Technology
Air-based Cooling
CRAH
Chiller and Economizer
Cooling Tower
Other Cooling Technologies
Liquid-based Cooling
Immersion Cooling
Direct-to-chip Cooling
End User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End Users
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Nigeria Data Center Cooling Market Size Summary

The Nigeria data center cooling market is poised for significant growth, driven by the increasing demand for cloud computing, government regulations on local data security, and substantial investments from domestic players. The market is characterized by the construction of new data centers that are implementing advanced cooling technologies to address the challenges posed by extreme weather conditions. These facilities are adopting energy-efficient cooling solutions, such as redundant cooling systems and direct liquid cooling, to maintain optimal temperatures and ensure operational continuity during power interruptions. The strategic location of Lagos, with its advanced network infrastructure and trade-free zones, further enhances the market's growth potential by attracting more organizations to leverage data center capabilities for specialized deployments.

The market landscape is fragmented, with major players like Schneider Electric SE, Rittal GMBH & Co.KG, and Mitsubishi Electric Hydronics & IT Cooling Systems SpA leading the charge in providing innovative cooling solutions. Recent partnerships and acquisitions, such as Carrier Global Corporation's collaboration with Strategic Thermal Labs and Vertiv's acquisition of Cooltera Ltd, highlight the ongoing advancements in cooling technologies. These developments are expected to enhance the efficiency and scalability of data center operations in Nigeria. As the demand for cloud services continues to rise, particularly in sectors like government, e-commerce, and BFSI, the data center cooling market is set to expand, supported by government initiatives and the growing need for local data hosting solutions.

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Nigeria 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 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

    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

Nigeria Data Center Cooling Market Size FAQs

The Nigeria Data Center Cooling Market size is expected to reach USD 3.85 million in 2024 and grow at a CAGR of 20.30% to reach USD 12.25 million by 2030.

In 2024, the Nigeria Data Center Cooling Market size is expected to reach USD 3.85 million.

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