Market Size of South Africa Data Center Cooling Industry
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 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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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.
South Africa Data Center Cooling Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Trend of High-Performance Computing across Europe
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1.2.2 Growing Rack Power Density
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1.3 Market Restraints
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1.3.1 High Initial Investments
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of the COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Cooling Technology
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2.1.1 Air-based Cooling
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2.1.1.1 CRAH
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2.1.1.2 Chiller and Economizer
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2.1.1.3 Cooling Tower
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2.1.1.4 Other Cooling Technologies
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2.1.2 Liquid-based Cooling
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2.1.2.1 Immersion Cooling
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2.1.2.2 Direct-to-chip Cooling
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2.2 End User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End Users
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South Africa Data Center Cooling Market Size 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.