South Africa Data Center Cooling Market Size (2024 - 2029)

The South Africa Data Center Cooling Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing, government regulations for local data security, and rising investments from domestic players. The market's expansion is further supported by the development of new regional data centers that are incorporating advanced cooling technologies and monitoring systems to address challenges posed by extreme weather events. These innovations aim to maintain temperature consistency and enhance energy efficiency, contributing to the overall growth in market size.

Market Size of South Africa Data Center Cooling Industry

South Africa Data Center Cooling Market Summary
Study Period 2017 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 0.05 Billion
Market Size (2030) USD 0.1 Billion
CAGR (2024 - 2030) 13.43 %
Market Concentration Medium

Major Players

South Africa Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Africa Data Center Cooling Market Analysis

The South Africa Data Center Cooling Market size is estimated at USD 0.05 billion in 2024, and is expected to reach USD 0.1 billion by 2030, growing at a CAGR of 13.43% during the forecast period (2024-2030).

  • 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 market's IT load capacity is expected to surpass 524 MW by 2030.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to exceed 1.8 million sq. ft by 2030.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 94K units by 2030. Johannesburg is expected to house the maximum number of racks by 2030.
  • Planned Submarine Cables: There are several submarine cables 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 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 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. Direct liquid cooling uses a higher thermal transfer of water to a more efficient cooling device.

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. Data center cooling 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 technology (air-based cooling (chiller and economizer, CRAH, cooling towers, and others), 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).

By Cooling Technology
Air-based Cooling
Chiller and Economizer
CRAH
Cooling Tower (covers direct, indirect & two-stage cooling)
Others
Liquid-based Cooling
Immersion Cooling
Direct-to-Chip Cooling
Rear-Door Heat Exchanger
By Type
Hyperscalers (owned & Leased)
Enterprise (On-premise)
Colocation
By End user Vertical
IT & Telecom
Retail & Consumer Goods
Healthcare
Media & Entertainment
Federal & Institutional agencies
Other end-users
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South Africa Data Center Cooling Market Size Summary

The South Africa 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 the adoption of advanced cooling technologies, such as liquid cooling and energy-efficient systems, to address the challenges posed by extreme weather conditions and rising data center densities. Key sectors contributing to this growth include telecommunications, banking, financial services, insurance, manufacturing, and e-commerce, with the latter two experiencing notable expansion due to Industry 4.0 initiatives and the proliferation of 5G technology. The market's expansion is further supported by the government's strategic investments in renewable energy and digital infrastructure, aiming to enhance energy efficiency and support the burgeoning digital economy.

The market landscape is consolidated, with major players like Schneider Electric, Rittal, Mitsubishi Electric, Johnson Controls, and Asetek leading the charge in providing innovative cooling solutions. These companies are actively developing and deploying cutting-edge technologies to meet the growing demands of high-performance computing environments. The introduction of modular and liquid cooling systems, along with government incentives and regulations promoting energy efficiency, is expected to bolster market growth. Additionally, the ongoing development of data centers in key urban areas, such as Johannesburg, and the implementation of state-of-the-art monitoring systems are set to further drive the demand for data center cooling solutions in South Africa.

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South Africa 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 & two-stage cooling)

        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

        3. 2.1.2.3 Rear-Door Heat Exchanger

    2. 2.2 By Type

      1. 2.2.1 Hyperscalers (owned & Leased)

      2. 2.2.2 Enterprise (On-premise)

      3. 2.2.3 Colocation

    3. 2.3 By End user Vertical

      1. 2.3.1 IT & Telecom

      2. 2.3.2 Retail & Consumer Goods

      3. 2.3.3 Healthcare

      4. 2.3.4 Media & Entertainment

      5. 2.3.5 Federal & Institutional agencies

      6. 2.3.6 Other end-users

South Africa Data Center Cooling Market Size FAQs

The South Africa Data Center Cooling Market size is expected to reach USD 0.05 billion in 2024 and grow at a CAGR of 13.43% to reach USD 0.1 billion by 2030.

In 2024, the South Africa Data Center Cooling Market size is expected to reach USD 0.05 billion.

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