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 2024 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 20.90 Million
Market Size (2030) USD 78.90 Million
CAGR (2024 - 2030) 24.70 %
Market Concentration High

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 20.90 million in 2024, and is expected to reach USD 78.90 million by 2030, growing at a CAGR of 24.70% 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 some 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 855 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 3.4 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 170,963 units by 2029. Riyadh is expected to house the maximum number of racks by 2029.
  • DC Facilities: There are 12 colocation data center facilities in Saudi Arabia, 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.
  • 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 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 cooling technology (air-based cooling (CRAH, chiller and economizer, cooling towers, and others), liquid-based cooling (immersion cooling and direct-to-chip cooling), and evaporative cooling), and end user (IT and telecommunication, BFSI, government, and media and 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
Others
Liquid-based Cooling
Immersion Cooling
Direct-to-Chip Cooling
End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End User
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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 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 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 Others

      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 and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End User

Saudi Arabia Data Center Cooling Market Size FAQs

The Saudi Arabia Data Center Cooling Market size is expected to reach USD 20.90 million in 2024 and grow at a CAGR of 24.70% to reach USD 78.90 million by 2030.

In 2024, the Saudi Arabia Data Center Cooling Market size is expected to reach USD 20.90 million.

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