United Arab Emirates Data Center Cooling Market Size
| Study Period | 2017 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.1 Billion |
| Market Size (2030) | USD 0.4 Billion |
| CAGR (2024 - 2030) | 17.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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United Arab Emirates Data Center Cooling Market Analysis
The United Arab Emirates Data Center Cooling Market size is estimated at USD 0.1 billion in 2024, and is expected to reach USD 0.4 billion by 2030, growing at a CAGR of 17.70% during the forecast period (2024-2030).
- The UAE data center cooling market has seen significant growth, solidifying its position as a leading digital infrastructure hub in the region. This surge is driven by the country's commitment to digital transformation and its adoption of advanced technologies such as IoT, Cloud, AI, and ML, alongside bolstered network connectivity.
- Under Construction IT Load Capacity: The IT load capacity of the UAE data center cooling market is expected to reach more than 967 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 3.4 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach above 173 thousand units by 2030. Dubai is expected to house the maximum number of racks by 2030.
- Planned Submarine Cables: Many submarine cables are under construction in the United Arab Emirates. One such cable, 2Africa, was estimated to start service in 2023. It was estimated to stretch over 45,000 kilometers, with landing points from Abu Dhabi and Kalba.
- The average winter temperature in the United Arab Emirates is between 16.4 °C (61.5 °F) and 24 °C (75.2 °F). The country's average summer temperature is between 32 °C (89.6 °F) and 37.2 °C (98.96 °F). DC cooling is done in the DC facilities, depending on the climatic conditions.
United Arab Emirates Data Center Cooling Market Trends
The IT and Telecom Segment is Expected to Record Significant Market Share
- The strategic positioning of the United Arab Emirates as a business hub in Middle East and Africa and South Asia (MEASA) lures multinational corporations, increasing demand for telecom and cloud services. This factor is fueling the demand for data centers in the country.
- In terms of connectivity, high-speed internet, a well-established telecom infrastructure, and advancements by key telecom players are bolstering the expansion of data centers in the country. In February 2024, at MWC Barcelona, Huawei, a Chinese vendor, and du, an Emirati telco, inked a Memorandum of Understanding (MoU) to enhance 5G-Advanced (5G-A) technology in the United Arab Emirates. Termed "5G-A Country," the initiative aims to expedite the country's digital evolution.
- In recent years, the United Arab Emirates has been in charge of digital transformation, with government entities and businesses alike modernizing their IT infrastructure and processes. As a result, the demand for cloud computing solutions has surged across the nation. For example, in 2023, the UAE Central Bank unveiled a new digital currency, introduced open finance, and launched a domestic card payment initiative, all aimed at propelling digital transformation in the financial services industry.
- Furthermore, in 2023, G42, a prominent AI and cloud computing firm based in the United Arab Emirates, launched the USD 10 billion G42 Expansion Fund. This global technology growth fund was set up in partnership with the Abu Dhabi Growth Fund (ADG). Such instances in the market are expected to create more need for data centers, boosting the demand for data center cooling infrastructures in the coming years.
Liquid Cooling is Expected to Hold a Significant Market Share
- In UAE data centers, to serve the growing requirement of data storage, the key data center operators are coming up with huge IT load capacities, resulting in generating more heat from the servers, which require cooling solutions that provide efficiency and capacity benefits. For instance, Khazna Data Center is expected to hold an IT load capacity of more than 120 MW in the coming years. Such instances in the region are expected to drive the demand for direct-to-chip cooling solutions.
- Vertiv stands out as one of the prominent players in the Middle Eastern AI industry, boasting a robust portfolio of successful AI initiatives. The company's critical digital infrastructure is primed for AI, catering not only to edge and enterprise demands but also extending its support to commercial, industrial, hyperscale, and colocation segments.
- Direct-to-chip liquid cooling is revolutionizing the Middle Eastern data center scene, majorly focusing on the UAE and Saudi Arabian hotspots. The Vertiv Liebert XDU Coolant Distribution Unit is a game-changer in the UAE data center cooling market. Tailored for the intense heat output of cutting-edge technologies like AI and HPC, this system efficiently handles CPUs and GPUs, managing to dissipate a remarkable 75% of the generated heat.
- Furthermore, Digital Realty rolled out a new liquid-to-chip cooling colocation service, direct liquid cooling (DLC), across its 170 data centers worldwide, including those in the United Arab Emirates. This new offering boasts an array of mechanical solutions, including rear door heat exchangers (RDHx) and DLC, supporting power densities from 30 to over 150 kW per rack.
- Immersion cooling is suitable for high-performance computing (HPC) and other advanced technologies that are becoming more prevalent in data centers. In May 2024, an executive from AWS highlighted that the country's efforts in developing AI tools, exemplified by the Falcon large language model, are showcasing its emergence as a significant contender in the global technology landscape.
United Arab Emirates Data Center Cooling Industry Overview
The UAE data center cooling market is fragmented. The benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to aid market growth. Market penetration is growing with a strong presence of major players such as Stulz GmbH, Astek Group, Schneider Electric SE, Vertiv Group Corp., and Mitsubishi Electric Corporation.
- December 2023: Vertiv acquired Cooltera Ltd, a coolant distribution unit (CDU) and secondary fluid networks (SFN) manufacturer. This acquisition is expected to improve the company's existing DC cooling solutions.
- October 2023: GRC, DCV Industries, and Dell Technologies collaborated to deliver high-efficiency, containerized data centers to the Middle East. This collaboration leverages GRC's patented single-phase immersion cooling systems, DCV's durable containerized data center enclosures, and Dell's high-density PowerEdge servers. Together, these components form a comprehensive solution that slashes data center construction, upkeep, and energy expenses, especially in challenging environments.
United Arab Emirates Data Center Cooling Market Leaders
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Stulz GmbH
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Astek Group
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Schneider Electric SE
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Vertiv Group Corp.
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Mitsubishi Electric Corporation
*Disclaimer: Major Players sorted in no particular order
United Arab Emirates Data Center Cooling Market News
- January 2024: XTREME DB SYSTEMS (XDS) secured investment to construct a cutting-edge smart data center equipped with immersion cooling technology in Dubai. XDS is set to revolutionize the data center landscape, providing customers not just with traditional hosting and fan-based cooling but also introducing three distinct nonconductive fluid cooling options, i.e., rear door, horizontal rack, and direct-to-chip cooling. This innovative approach at the new XDS data center will give customers the flexibility to opt for either traditional racks or advanced liquid cooling solutions.
- January 2024: Data center firm Aligned launched a new liquid cooling system called DeltaFlow. The liquid cooling technology supports high-density computing requirements and supercomputers and can cool up to 300 kW per rack density. The new DeltaFlow system works simultaneously with Aligned’s air-cooled Delta technology, enabling no change in power delivery or existing data hall temperatures.
United Arab Emirates Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Key Cost Considerations for Cooling
4.2.1 Analysis of the Key Cost Overheads Related to DC Operations with an Eye on DC Cooling
4.2.2 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
4.2.3 Key Innovations and Developments in Data Center Cooling
4.2.4 Key Energy Efficiency Practices Adopted in Data Centers
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Government Initiatives and Rising Demand for Digitalization are Propelling Market Growth
5.1.2 Rise in Cloud-based Businesses Driving the Demand for the Market Studied
5.2 Market Challenges
5.2.1 Dynamic Nature of Regulations on Cooling Solutions
5.3 Market Opportunities
5.3.1 Adoption of AI in the Country Drives the Demand for Market Studied
5.4 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN THE COUNTRY
6.1 Analysis of IT Load Capacity and Area Footprint of Data Centers (For the Period of 2017-2030)
6.2 Analysis of the Current DC Hotspots and Scope for Future Expansion in the Country
6.3 Analysis of Major Data Center Contractors and Operators in the Country
7. MARKET SEGMENTATION
7.1 By Cooling Technology
7.1.1 Air-based Cooling
7.1.1.1 Chiller and Economizer
7.1.1.2 CRAH
7.1.1.3 Cooling Tower (Covers, Direct, Indirect, and Two-stage Cooling)
7.1.1.4 Other Air-based Cooling Technologies
7.1.2 Liquid-based Cooling
7.1.2.1 Immersion Cooling
7.1.2.2 Direct-to-Chip Cooling
7.1.2.3 Rear-Door Heat Exchanger
7.2 By Type
7.2.1 Hyperscale (Owned and Leased)
7.2.2 Enterprise (On-premise)
7.2.3 Colocation
7.3 By End-user Industry
7.3.1 IT and Telecom
7.3.2 Retail and Consumer Goods
7.3.3 Healthcare
7.3.4 Media and Entertainment
7.3.5 Federal and Institutional Agencies
7.3.6 Other End-user Industries
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Stulz GmbH
8.1.2 Astek Group
8.1.3 Schneider Electric SE
8.1.4 Vertiv Group Corp.
8.1.5 Mitsubishi Electric Corporation
8.1.6 Daikin Industries Limited
8.1.7 Johnson Controls International PLC
8.1.8 Munters
8.1.9 Alfa Laval AB
8.1.10 Emerson Electric Co.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
United Arab Emirates Data Center Cooling Industry Segmentation
Data center cooling is a system that helps maintain optimal operating temperatures in data center environments. It is critical, as data center facilities 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. Methods such as air conditioning, liquid cooling, and hot/cold aisle containment are commonly used to control temperature and humidity in data centers.
The UAE data center cooling market is segmented by technology (air-based cooling [chiller and economizer, CRAH, cooling towers, and other air-based cooling technologies] and liquid-based cooling [immersion cooling, direct-to-chip cooling, and rear-door heat exchanger]), type of data center (hyperscale, 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 sizes and forecasts in terms of value (USD) for the above segments.
| By Cooling Technology | ||||||
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| By Type | |
| Hyperscale (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 |
United Arab Emirates Data Center Cooling Market Research FAQs
How big is the United Arab Emirates Data Center Cooling Market?
The United Arab Emirates Data Center Cooling Market size is expected to reach USD 0.1 billion in 2024 and grow at a CAGR of 17.70% to reach USD 0.4 billion by 2030.
What is the current United Arab Emirates Data Center Cooling Market size?
In 2024, the United Arab Emirates Data Center Cooling Market size is expected to reach USD 0.1 billion.
Who are the key players in United Arab Emirates Data Center Cooling Market?
Stulz GmbH, Astek Group, Schneider Electric SE, Vertiv Group Corp. and Mitsubishi Electric Corporation are the major companies operating in the United Arab Emirates Data Center Cooling Market.
What years does this United Arab Emirates Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the United Arab Emirates Data Center Cooling Market size was estimated at USD 0.08 billion. The report covers the United Arab Emirates Data Center Cooling Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Arab Emirates Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Arab Emirates Data Center Cooling Industry Report
Statistics for the 2024 United Arab Emirates Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Arab Emirates Data Center Cooling analysis includes a market forecast outlook for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
