Middle East & Africa Data Center Cooling Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The data center cooling market in the Middle East and Africa (MEA) is projected to grow significantly, reaching approximately USD 1.69 billion by 2031, up from USD 584.19 million in 2023, with a compound annual growth rate (CAGR) of 14.2% during the forecast period.

Executive Summary and Market Analysis

The MEA region is experiencing substantial advancements and investments in data center cooling technologies. A notable development occurred in May 2022 when Microsoft Corp. partnered with G42 to invest in Kenya, committing USD 1 billion to various digital initiatives, including the establishment of a cutting-edge green data center to support Microsoft Azure in East Africa. This initiative emphasizes technological progress and environmental sustainability, utilizing renewable energy sources for data center operations, which is expected to enhance the adoption of cooling systems in the region.

The growth of the data center cooling market in MEA is further supported by economic development and increased investments in the information and communications technology (ICT) sector. These trends highlight the region's dedication to implementing advanced cooling technologies to meet the evolving demands of data center operations and facilitate digital transformation.

Market Segmentation Analysis

The MEA data center cooling market can be segmented based on components, cooling types, data center types, and industry verticals:

1. Components: The market is divided into air conditioning systems, chillers, air handling units, cooling towers, heat exchangers, humidifiers, and others. In 2023, air conditioning systems held the largest market share.

2. Cooling Types: The market is categorized into room-based cooling, row-based cooling, and rack-based cooling, with room-based cooling leading in market share in 2023.

3. Data Center Types: The market includes hyperscale data centers, colocation data centers, wholesale data centers, and enterprise data centers, with hyperscale data centers dominating the market in 2023.

4. Industry Verticals: The market is segmented into IT and telecom, banking, financial services and insurance (BFSI), healthcare, manufacturing, government and defense, media and entertainment, retail, energy, and others. The IT and telecom sector held the largest share in 2023.

Market Outlook

Liquid cooling has emerged as a preferred solution for high-performance computing (HPC) and data center operations. This technology reduces the need for continuous air circulation, significantly lowering utility consumption and enhancing energy efficiency. Currently, around 40% of data centers are utilizing liquid cooling technologies. Companies are forming strategic partnerships to advance these technologies. For example, in September 2023, Mitsubishi Heavy Industries (MHI) and ZutaCore, Inc. announced a partnership to develop sustainable liquid cooling solutions aimed at achieving energy efficiency and zero emissions. This collaboration combines ZutaCore's HyperCool technology, a waterless direct-on-chip liquid cooling solution, with MHI's extensive product offerings, promising significant benefits in computing power, cost reduction, and heat reuse.

In 2024, STULZ plans to launch the CyberCool CMU, a coolant management and distribution unit designed to optimize heat exchange efficiency in liquid cooling systems. This innovative product will be showcased at Data Centre World Frankfurt 2024, highlighting the ongoing efforts to tackle heat challenges in data centers and meet the demands of various sectors. The advancements in liquid cooling technologies are expected to create significant growth opportunities for the data center cooling market in the coming years.

Country Insights

The MEA data center cooling market includes key countries such as the UAE, Saudi Arabia, South Africa, and the Rest of MEA, with the latter holding the largest market share in 2023. Countries like Israel and Egypt are pivotal in this segment, driven by collaborative initiatives among companies. For instance, in December 2023, Nutanix and Raya Data Centers signed a Memorandum of Understanding to provide tailored cloud computing solutions for public and enterprise sectors in Egypt. The growth of the data center cooling market in these countries is fueled by increased government and private sector focus on developing data centers and enhancing cloud computing services.

Company Profiles

Key players in the MEA data center cooling market include Asetek, Mitsubishi Corp, Stulz SpA, Vertiv Group Corp., Aspen Systems, Daikin Industries, Delta Electronics, Danfoss, Motivair Corporation, and others. These companies are pursuing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative solutions to consumers.

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