Saudi Arabia Data Center Cooling Market Size (2024 - 2029)

The Saudi Arabia Data Center Cooling Market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations for local data security, and rising investments by domestic players. The market's expansion is further supported by the construction of new data centers equipped with advanced cooling technologies to address the challenges posed by extreme weather conditions. Riyadh is anticipated to be a central hub for data center infrastructure, including a substantial number of racks and IT load capacity. The adoption of 5G, smartphone penetration, and growing digitization are key factors contributing to the market's development.

Market Size of Saudi Arabia Data Center Cooling Industry

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Saudi Arabia Data Center Cooling Market Summary
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

Saudi Arabia Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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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 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
Air-based Cooling
Chiller and Economizer
CRAH
Cooling Tower (covers Direct, Indirect, and Two-stage Cooling)
Other Air-based Cooling
Liquid-based Cooling
Immersion Cooling
Direct-to-chip Cooling
Rear-door Heat Exchanger
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
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Saudi Arabia Data Center Cooling Market Size Summary

The Saudi Arabia data center cooling market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by a rapid expansion of data center infrastructure, including substantial increases in IT load capacity, raised floor space, and the number of racks, particularly in Riyadh, which serves as the primary hub for data centers in the country. The adoption of advanced technologies such as 5G, smartphone penetration, and digitization initiatives are further propelling the market's expansion. New data centers are focusing on implementing cutting-edge cooling technologies, including redundant cooling systems and direct liquid cooling, to address the challenges posed by extreme weather conditions and to enhance energy efficiency.

The market landscape is fragmented, with major players like Schneider Electric SE, Rittal GMBH & Co.KG, and Mitsubishi Electric Hydronics & IT Cooling Systems SpA playing pivotal roles. The cloud, telecom, and BFSI sectors are expected to dominate the market, supported by initiatives aligned with Saudi Arabia's Vision 2030, which aims to modernize and automate the economy. The rise of 5G networks and the expansion of IT infrastructure are key factors driving the demand for data center cooling solutions. Recent technological advancements, such as those by Vertiv and Carrier Global Corporation, are enhancing cooling efficiencies and supporting high-density computing requirements. The strategic location of Riyadh and ongoing developments in other cities like Jeddah, Dammam, and Madinah are expected to further bolster the market's growth in the coming years.

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Saudi Arabia Data Center Cooling Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Key cost considerations for Cooling

      1. 1.2.1 Analysis of the key cost overheads related to DC operations with an eye on DC Cooling

      2. 1.2.2 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)

      3. 1.2.3 Key innovations and developments in Data Center Cooling

      4. 1.2.4 Key energy efficiency practices adopted in Data Centers

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Cooling Technology

      1. 2.1.1 Air-based Cooling

        1. 2.1.1.1 Chiller and Economizer

        2. 2.1.1.2 CRAH

        3. 2.1.1.3 Cooling Tower (covers Direct, Indirect, and Two-stage Cooling)

        4. 2.1.1.4 Other Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

        1. 2.1.2.1 Immersion Cooling

        2. 2.1.2.2 Direct-to-chip Cooling

        3. 2.1.2.3 Rear-door Heat Exchanger

    2. 2.2 By Type

      1. 2.2.1 Hyperscalers (Owned and Leased)

      2. 2.2.2 Enterprise (On-premise)

      3. 2.2.3 Colocation

    3. 2.3 By End-user Industry

      1. 2.3.1 IT and Telecom

      2. 2.3.2 Retail and Consumer Goods

      3. 2.3.3 Healthcare

      4. 2.3.4 Media and Entertainment

      5. 2.3.5 Federal and Institutional agencies

      6. 2.3.6 Other End-user Industries

Saudi Arabia Data Center Cooling Market Size FAQs

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.

In 2024, the Saudi Arabia Data Center Cooling Market size is expected to reach USD 0.1 billion.

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