Middle East & Africa Data Center Cooling Market Outlook, 2027

A data center is the department in any enterprise/organization that houses and maintains the back-end systems as well as stores data. Due to emerging centralized IT operations, this department has become one physical place, hence the name data center. Countries in Middle East & Africa region are focusing towards the adoption of digital transformation. Moreover, introduction of 5G network fuels the IoT, smart cities and industrial technological revolution. In order to achieve higher market growth, Middle East & Africa data center cooling market has attracted significant investments in recent years led by countries such as Israel, Oman, Saudi Arabia, Qatar, Turkey, South Africa etc. Higher emergence of cloud computing technology coupled with government initiatives across the region has boosted the demands for data center and data center cooling techniques. For instance, UAE government has introduced diverse projects including Smart Dubai and Smart Abu Dhabi to achieve higher economic growth. In addition to that, internet penetration in the region is calculated to be nearly 77%. Rising growth in internet usage has led the generation of high amount of data which needs to be stored and processed in data centers. This creates higher demands for data center cooling equipments to obtain optimal temperature and humidity in data center infrastructures.

According to the research report, “Middle East & Africa Data Center Cooling Market Outlook, 2027” published by Bonafide Research, data center cooling market is anticipated to have 10.26% CAGR during the forecast period. The Middle East & Africa market is expected to witness steady growth with the rise in economic developments in investments in various industries across the region. In addition to that, growing concerns for energy and cost efficiency data centers have projected to fuel the overall market growth. Increasing count of data centers in gulf countries and rising internet connectivity & availability with supporting infrastructures have boosted the demands for efficient data center cooling techniques. Middle East & Africa data center cooling market is segmented into three prominent countries including the United Arab Emirates, Saudi Arabia and South Africa. Among these countries, Saudi Arabia is expected to lead the Middle East & Africa market during the forecast period. The rising adoption of smart devices and higher demands for analytics, cloud adoption and the wireless networking technologies have led several governments in Saudi Arabia to invest in data center cooling technologies. Saudi Arabia has recently become one of the technology hubs of the Middle East & Africa region because major IT industries and healthcare sector is gaining significant access into the market. In addition to that, Saudi Arabia has introduced its ‘Vision 2030’ objectives which have led the technology giants like Google, Microsoft and IBM to set up data centers across several countries.

Data center cooling accounts for more than 30% of the total energy consumption. In the current scenario, various companies are moving forward towards sustainable cooling (which can save up to 80% or more energy costs). In addition to that, there is a rise in pressure for government agencies and other organizations to introduce green initiatives. Therefore, rising demands for eco-friendly cooling solutions are expected to boost the market growth in Middle East & Africa region. According to the report, Middle East & Africa data center cooling market is segmented into two components which are solution and services. Among these segments, solution component is expected to rise with higher market share during the forecast period due to increasing awareness about data storage and enhanced performance of cooling solutions across the region. Further, data center cooling solution segment is segregated into various product types including air conditioning, chilling units, cooling towers, economizer, liquid cooling and control systems. Among these types, air conditioning segment is expected to register higher market share of more than 25% by 2027. Lower maintenance cost and higher efficiency provided by this segment has boosted the demands for air conditioning cooling type across the region.

According to the report, Middle East & Africa data center cooling market is categorized into three cooling types including, room-based cooling, row-based cooling and rack-based cooling. Among these types, room-based cooling type is expected to acquire more than 44% of market share during the forecast period owing to effective cooling performance at less cost. Due to least use of pipes and ducts compared to other cooling types, this segment is anticipated to maintain large market share. In addition to that, energy efficient cooling is one of the major driving factors for room-based cooling in Middle East & Africa region.

Impact of Covid-19 on Middle East & Africa Data Center Cooling Market:
Middle East & Africa region has witnessed dual effects of Covid-19 pandemic and sharp oil price reduction across the country. These factors have impacted manifold economic situations and consequences across the gulf region. Due to lockdown situations and strict government regulations, major productions and manufacture plants were at halt. In addition to that, supply chain for data center cooling elements was also disrupted. However, pandemic has helped the region to spread awareness about technology revolution into several countries. Despite the pandemic, internet service providers, information technology and data centers have witnessed increasing demands as a result of the shift towards home and remote working. These factors implies towards the rise in the demands for data center cooling market in Middle East & Africa region.

Major Companies present in the market:
Vertiv Holdings Co., Schneider Electric S.E., Stulz Gmbh, Mitsubishi Electric Corporation, Daikin Industries Limited, Rittal Gmbh & Co. KG, Nortek Air Solutions LLC, Johnson Controls International PLC, Munters Group AB., Black Box Corporation, Airedale International Air Conditioning Limited, Asetek, Inc., Coolcentric, Degree Controls, Inc., Condair Group AG, Chilldyne Inc., LiquidCool Solutions, CoolIT Systems, Delta Electronics, Alfa Laval Corporate AB, Shenzhen Envicool Technology Co., Ltd, Shanghai shenglin M&E Technology Co., Ltd, GRC (Green Revolution Cooling), Aspen Systems, Fujitsu Limited

Considered in this report:
• Geography: Middle East & Africa
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report:
• Middle East & Africa Data Center Cooling market with its value and forecast along with its segments
• Country wise market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• UAE
• Saudi Arabia
• South Africa

By Component in the report:
• Solution
• Services

By Product Type in the report:
• Air Conditioning
• Chilling Units
• Cooling Towers
• Economizer
• Liquid Cooling
• Control Systems
• Others

By Service Type in the report:
• Consulting
• Installation & Deployment
• Maintenance & Support

By Industry Verticals in the report:
• BFSI
• IT & Telecom
• Research & Academic
• Government & Defense
• Retail
• Energy
• Manufacturing
• Others

By Cooling Type in the report:
• Room-based Cooling
• Row-based Cooling
• Rack-based Cooling

By Data Center Type in the report:
• Large Data Centers
• Enterprise Data Centers
• Mid-sized Data Centers

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning. Post this we have started doing primary calls to industry people by equally segmenting in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry manufactures, consultants, Key vendors related to Data Center& HVAC solution industry. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

Research Consultant

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