South Africa Data Center Cooling Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 202.5 Million |
| Market Size (2029) | USD 568.90 Million |
| CAGR (2024 - 2029) | 23.20 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Africa Data Center Cooling Market Analysis
The South Africa Data Center Cooling Market size is estimated at USD 202.5 million in 2024, and is expected to reach USD 568.90 million by 2029, growing at a CAGR of 23.20% during the forecast period (2024-2029).
- The demand for data centers is driven by the increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players.
- Under Construction IT Load Capacity: The Italian data center market's upcoming IT load capacity is expected to reach more than 828.9 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 4.4 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 220,200 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: Many are under construction. One such cable, 2Africa, is estimated to start service in 2024. It stretches over 45,000 kilometers and has landing points in Cape Town, Mtunzini, and Port Elizabeth.
- New regional data centers 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 temperature consistency during power interruptions. Another example is direct liquid cooling, which uses a higher thermal transfer of water to a more efficient cooling device.
South Africa Data Center Cooling Market Trends
The IT & Telecom Segment is Expected to Have Significant Market Share
- Telecom and BFSI are expected to contribute the highest market share, while the manufacturing and e-commerce segments will record the highest growth of 21.85% and 22.17%, respectively, during the forecast period. The IT load capacities of the manufacturing and e-commerce segments may reach 66.05 MW and 83.94 MW, respectively, by 2029 due to the increasing Industry 4.0 initiatives in the manufacturing segment and the increasing 5G penetration.
- The telecom segment may continue its dominance due to the growing 5G connections. The 5G mobile data speed is expected to grow significantly and reach 407.59 Mbps by 2029, suggesting increasing data traffic and rising demand for data center servers in the segment.
- Major sectors in the country, such as e-commerce, healthcare, telecommunication, and government, are expected to make a significant impact on the demand for data center services and solutions as more service aggregators are trying to connect the urban population with rural cultures and heritage, giving a platform for MSMEs to grow in the country.
- The COVID-19 pandemic accelerated the confluence of a number of trends in the country's healthcare sector, most notably consumers' preference for accessibility and convenience. Healthcare systems transformed digitally, changing their operations, culture, and use of technology while also becoming more consumer-friendly.
Liquid Cooling is Expected to Have Significant Share
- In data centers, liquid cooling offers many benefits and is an attractive option to cool high-performance computing environments. The use of liquid cooling is more energy efficient than conventional air conditioning. It reduces the need for overcooling and improves the energy efficiency of data centers by providing precise temperature control.
- Technological advances have helped to reduce the data center's water consumption by more than 15% in tropical climates and 80% in green areas, making liquid cooling easier to maintain, scale up, or affordable. Energy used for liquid cooling may be recycled to heat buildings and drinking water, while advanced artificial refrigerants can significantly reduce the carbon footprint of air conditioners.
- Liquid cooling takes advantage of the 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 allows for control of liquid quality, flow, and pressure.
- Also, the government is expected to make more investments to innovate in areas such as quantum computing, artificial intelligence, and applications utilizing 5G and 6G technologies. It aims to attain full 5G coverage, for which it planned a 5G spectrum auction in 2023. Such aspects are expected to complement the growth and demand for data processing facilities in the telecom industry, resulting in the rise of demand for DC cooling infrastructure in the country.
- Along with the growing adoption of digitalization, the increasing concerns over energy efficiency have witnessed more significant reforms in the market, completing the adoption of such facilities. For instance, the South African government has introduced the Renewable Energy Independent Power Producer Procurement Programme to facilitate these needs. From the inception of this program, over 6,000 MW of renewable energy projects, principally in wind and solar, were allocated to bidders. The government strategically invests in renewable energy projects, particularly solar and wind, to achieve this ambitious target.
- In February 2022, South Africa launched a 300 MW renewable energy program. Under this program, the government launched the tender process to procure up to 300 MW of renewable energy capacity. In August 2022, South Africa proposed to solve the country's energy crisis by converting three coal-fired reactors into gas-burning generators and establishing a new state-owned power utility.
- The key players (Equinix, Africa Data Centres, Vantage Data Centers, and NTT Ltd) in the market are planning to establish data centers in Johannesburg with a capacity of up to 270 MW, which is expected to increase the demand for Tier 4 facilities in the market. All the factors above further drive the demand for the segment.
South Africa Data Center Cooling Industry Overview
The South African data center cooling market is consolidated. 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 Schneider Electric SE, Rittal GMBH & Co.KG, Mitsubishi Electric Hydronics & IT Cooling Systems SpA, Johnson Controls International PLC, and Asetek A/S.
South Africa Data Center Cooling Market Leaders
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Schneider Electric SE
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Rittal GMBH & Co.KG
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Mitsubishi Electric Hydronics & IT Cooling Systems S.p.A.
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Johnson Controls International PLC
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Asetek A/S
*Disclaimer: Major Players sorted in no particular order
South Africa Data Center Cooling Market News
- 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)
- 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.
South Africa 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 Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Trend of High-Performance Computing across Europe
4.2.2 Growing Rack Power Density
4.3 Market Restraints
4.3.1 High Initial Investments
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of the COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Cooling Technology
5.1.1 Air-based Cooling
5.1.1.1 CRAH
5.1.1.2 Chiller and Economizer
5.1.1.3 Cooling Tower
5.1.1.4 Other Cooling Technologies
5.1.2 Liquid-based Cooling
5.1.2.1 Immersion Cooling
5.1.2.2 Direct-to-chip Cooling
5.2 End User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Stulz GmbH
6.1.2 Rittal GMBH & Co.KG
6.1.3 Schneider Electric SE
6.1.4 Vertiv Group Corp.
6.1.5 Mitsubishi Electric Hydronics & IT Cooling Systems SpA
6.1.6 Asetek A/S
6.1.7 Johnson Controls International PLC
6.1.8 Fujitsu General Limited
6.1.9 Airedale International Air Conditioning
6.1.10 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
South Africa 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 South African 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 for all the above segments.
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| End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End Users |
South Africa Data Center Cooling Market Research Faqs
How big is the South Africa Data Center Cooling Market?
The South Africa Data Center Cooling Market size is expected to reach USD 202.5 million in 2024 and grow at a CAGR of 23.20% to reach USD 568.90 million by 2029.
What is the current South Africa Data Center Cooling Market size?
In 2024, the South Africa Data Center Cooling Market size is expected to reach USD 202.5 million.
Who are the key players in South Africa Data Center Cooling Market?
Schneider Electric SE, Rittal GMBH & Co.KG, Mitsubishi Electric Hydronics & IT Cooling Systems S.p.A., Johnson Controls International PLC and Asetek A/S are the major companies operating in the South Africa Data Center Cooling Market.
What years does this South Africa Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the South Africa Data Center Cooling Market size was estimated at USD 155.52 million. The report covers the South Africa Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Data Center Cooling Industry Report
Statistics for the 2024 South Africa Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Data Center Cooling analysis includes a market forecast outlook for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
