Saudi Arabia Data Center Cooling Market Size
| 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) | 31.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Data Center Cooling Market Analysis
The Saudi Arabia 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 31.30% 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 Saudi Arabian data center market is expected to reach more than 1,416 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 5 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach 254k units by 2030. Riyadh is expected to house the maximum number of racks by 2030.
- DC Facilities: Saudi Arabia has around 39 colocation data center facilities, with Riyadh being the major hotspot. Some factors contributing to the growth of data centers in the country are the adoption of 5G, smartphone penetration, and growing digitization.
- The average winter temperature is between 8 °C (46.4 °F) and 20 °C (68 °F), and the average summer temperature is between 27 °C (80.6 °F) to over 48 °C (118.4 °F). Winters can vary widely across the country, with frequent cold, fog, and snow periods in the north and more pleasant weather in the south. Depending upon climatic conditions, DC cooling is done in the DC facilities.
Saudi Arabia Data Center Cooling Market Trends
The IT and Telecom Segment is Expected to Have Significant Market Share
- Since the Kingdom of Saudi Arabia (KSA) launched its Cloud First Policy in 2019 to accelerate cloud adoption across its public and private sectors, the country has seen a 16% growth rate in cloud services, as stated by the International Trade Association. With its ICT readiness and use of cloud computing, the Great Kingdom of Saudi Arabia is a pioneer in the MENA region. The KSA leaders have made it possible to offer more diverse services while at the same time assuring enhanced data privacy protection because they recognize that cloud computing adoption is the key to economic progress. Methodologies that match IT resources with business and application needs are prioritized to improve cloud performance and hasten the achievement of ideal business objectives.
- Official data revealed that cloud computing registrations in Saudi Arabia surged by 40% Y-o-Y in Q4 2023. Between October and December 2023, the government issued 1,759 cloud computing permits. This uptick highlights the Kingdom's ambition to establish the region as a technological hub by 2030.
- Also, this move aligns with the Saudi government's proactive stance on adopting digital technologies, fostering economic diversification, and enhancing innovation. According to the ministry report, Riyadh led the way with 1,062 registrations, trailed by Makkah with 346 and the Eastern Province with 216. Madinah issued 46 permits, while Asir granted 24.
- In terms of telecom growth, the telecom industry is expected to continue to dominate due to users' increasing adoption of 5G networks. By 2029, 5G mobile data speed is expected to increase significantly to 921 Mbps. This supports the idea that data center servers are increasing in demand. The country's adoption of 4G is also fueling growth in the country's data center market. Rapid expansion and installation of IT infrastructure are projected to boost the market's growth during the forecast period.
- As part of Vision 2030, Saudi Arabia is planning to modernize and automate its economy, and the rise of 5G mobile services in the nation is essential to this effort. Creative and disruptive applications are made possible by 5G's disruptive capabilities. Saudi Arabia will be the first among the nations in Europe, Africa, and the Middle East to make the entire 6 GHz frequency range open for WiFi use, according to the CITC. This indicates that the free airwaves available to routers for the next generation of WiFi networks have increased by 150%. Saudi Arabia has now made 2,035 MHz of spectrum available for the next generation of WiFi and other license-exempt technologies, more than any other nation in the world, by assigning 1,200 MHz of the radio spectrum for WiFi6e. Such instances in the market are expected to create more need for data centers, boosting the demand for data center cooling infrastructure manufacturers in the coming years.
Liquid Cooling to Record Significant Share
- In data centers, liquid cooling offers many benefits and is an attractive option for high-performance cooling computing environments. The use of liquid cooling is more energy efficient compared to conventional air conditioning. It reduces the need for overcooling and improves the energy efficiency of data centers by providing precise temperature control.
- Liquid cooling uses space constraints and superior heat transfer properties of water or other liquids to provide efficient and cost-effective cooling of high-density racks up to 3,000 times more efficiently than air. Long proven in mainframe and gaming applications, liquid cooling is increasingly used to protect rack servers in regional data centers. Vertiv has introduced the Liebert XDU, a water-efficient liquid cooling solution designed for high-density data centers. This new generation of thermal management systems supports liquid-cooled servers and enables precise control of liquid quality, flow, and pressure.
- With destructive investments by the Saudi Arabian government in cloud computing and the country’s competitive business laws and robust technological infrastructure, the ICT industry is projected to continue expanding in the coming years. The deployment of 5G services and the development of smart cities are anticipated to increase data traffic and grow the demand for more data centers in the country.
- In addition, the Saudi Ministry of Communications and Information Technology (MCIT) has unveiled an ambitious USD 18 billion initiative to establish a network of large-scale data centers across the Kingdom. The government aims to position Saudi Arabia as the primary data center hub in the region, collaborating closely with local and international investors. This move is timely, given the nation's expanding international ties, which are set to bolster the data center industry. For instance, Tencent Holding, a Chinese internet services giant, plans to expand its cloud services in Saudi Arabia and the United Arab Emirates, focusing initially on providing cloud storage solutions to local gaming firms and later investing in AI computing capabilities, including an Arabic language model.
- Also, the growing workloads and increasing demand for high-performance computing (HPC) applications generate significant heat in data centers. The high ambient temperatures in the region can create efficiency challenges, leading to increased demand for liquid cooling solutions in the country.
- Major data center cooling solution market players are increasing their innovation and presence in Saudi Arabia. For instance, in March 2024, Accelsius and Equus Compute Solutions (ECS) joined forces, aiming to cater to the rising demand for cutting-edge liquid cooling solutions in data centers. This collaboration sees Accelsius's top-tier direct-to-chip liquid cooling technology complemented by ECS's suite of services, spanning server and rack integration, deployment, commissioning, and comprehensive technical and customer support. The focus on collaboration and innovation is poised to significantly boost market demand within Saudi Arabia's data center landscape.
Saudi Arabia Data Center Cooling Industry Overview
The Saudi Arabian data center cooling market is fragmented as the benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly. Market penetration is growing with a strong presence of major players such as Stulz GmbH, Astek Group, Schneider Electric SE, Vertiv Group Corp., and Mitsubishi Electric Corporation.
- April 2024: Carrier Global Corporation partnered with Strategic Thermal Labs to develop direct-to-chip cooling technology. Under this partnership, Carrier will leverage the advancement in this technology and incorporate it into its data center cooling solutions.
Saudi Arabia Data Center Cooling Market Leaders
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Stulz GmbH
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Astek Group
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Schneider Electric SE
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Vertiv Group Corp.
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Mitsubishi Electric Corporation
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Data Center Cooling Market News
- November 2023: LiquidStack unveiled its latest innovation: a single-phase liquid cooling solution. This new technology empowers data centers with a cost-effective alternative to traditional air cooling and offers energy efficiency and sustainability through immersion cooling. LiquidStack's solution boasts unparalleled efficiency, outperforming its competitors by delivering over 100kW per full-size tank under comparable conditions. Given Saudi Arabia's ambitious move toward smart cities, this breakthrough is expected to increase the demand for single-phase cooling solutions, thereby enhancing the nation's computing capabilities.
- December 2023: Vertiv acquired Cooltera Ltd, a manufacturer of coolant distribution units (CDU) and secondary fluid networks (SFN). This acquisition is expected to improve the existing DC cooling solutions offered by the company.
Saudi Arabia 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 trend of Cloud based businesses in the country 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 in the 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, and Two-stage Cooling)
7.1.1.4 Other Air-based Cooling
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 and Leased)
7.2.2 Enterprise (On-premise)
7.2.3 Colocation
7.3 By End-user Industry
7.3.1 IT and Telecom
7.3.2 Retail and Consumer Goods
7.3.3 Healthcare
7.3.4 Media and Entertainment
7.3.5 Federal and Institutional agencies
7.3.6 Other End-user Industries
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Stulz GmbH
8.1.2 Astek Group
8.1.3 Schneider Electric SE
8.1.4 Vertiv Group Corp.
8.1.5 Mitsubishi Electric Corporation
8.1.6 Daikin Industries Limited
8.1.7 Johnson Controls International PLC
8.1.8 Munters
8.1.9 Alfa Laval AB
8.1.10 Emerson Electric Co.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Saudi Arabia 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 Saudi Arabian data center cooling market is segmented by technology (air-based cooling (chiller and economizer, CRAH, cooling towers, and other technologies), liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger)), type of data center (hyperscaler, enterprise, and colocation), and end-user industry (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries). The report offers market size and forecasts in value (USD) for all the above segments.
| By Cooling Technology | ||||||
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| By Type | |
| Hyperscalers (Owned and Leased) | |
| Enterprise (On-premise) | |
| Colocation |
| By End-user Industry | |
| IT and Telecom | |
| Retail and Consumer Goods | |
| Healthcare | |
| Media and Entertainment | |
| Federal and Institutional agencies | |
| Other End-user Industries |
Saudi Arabia Data Center Cooling Market Research FAQs
How big is the Saudi Arabia Data Center Cooling Market?
The Saudi Arabia Data Center Cooling Market size is expected to reach USD 0.1 billion in 2024 and grow at a CAGR of 31.30% to reach USD 0.6 billion by 2030.
What is the current Saudi Arabia Data Center Cooling Market size?
In 2024, the Saudi Arabia Data Center Cooling Market size is expected to reach USD 0.1 billion.
Who are the key players in Saudi Arabia Data Center Cooling Market?
Stulz GmbH, Astek Group, Schneider Electric SE, Vertiv Group Corp. and Mitsubishi Electric Corporation are the major companies operating in the Saudi Arabia Data Center Cooling Market.
What years does this Saudi Arabia Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Data Center Cooling Market size was estimated at USD 0.07 billion. The report covers the Saudi Arabia Data Center Cooling Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Saudi Arabia Data Center Cooling Industry Report
Statistics for the 2024 Saudi Arabia Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia 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.
Saudi Arabia Data Center Cooling Market Report Snapshots
