Market Trends of United Arab Emirates Data Center Cooling Industry
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.
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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.
