Middle East and Africa Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Middle East and Africa Data Center cooling is segmented by Solution (Air Conditioner/Handler, Overhead Cooling System, Chiller, Liquid Cooling System, Economizer Systems), By Service (Installation and Deployment, Consulting Support and Maintenance Services), By End-User Vertical ( Information Technology, BFSI, Telecommunication, Healthcare, Government), By Geography.

MEA Data Center Cooling Market Size

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Middle East And Africa Data Center Cooling Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.60 %
Market Concentration Medium

Major Players

Middle East And Africa Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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MEA Data Center Cooling Market Analysis

The Middle East and Africa Cooling market is expected to grow at a CAGR of 9.6% during the forecast period. Further, the market is expected to witness and steady growth with an increase in economic development and investments in the ICT industry in the MEA region.

  • The market in the region is driven by a consistent storm of government and enterprise, developing a digital infrastructure to support automation adoption across a variety of end-user verticals, including financial services, telecommunications retail, and manufacturing.
  • Many major cloud players are entering the region to grab the opportunity of this untapped market. Hence this will also develop the demand for data center cooling. Additionally, the regional weather also makes cooling solutions a priority for data centers.
  • Africa is emerging as a potential market for data centers. Africa Data Centers, a subsidiary of Liquid Telecom, has fitted out another floor for adding enough space for another 160 racks in its facility in Nairobi, Kenya. The newly-opened floor is a direct response to the massive demand for colocation and hosting services in Africa.
  • The dual effects of COVID-19 and sharp oil price reduction have had manifold economic consequences across the Gulf region. Despite the downturn, one sector of the economy, namely internet service providers (ISPs), information technology (IT) infrastructure providers, and data centers, has seen demand increase primarily as a result of the shift towards home and remote working. This indicates the rising demand for the Data center cooling market in the region.

MEA Data Center Cooling Market Trends

This section covers the major market trends shaping the MEA Data Center Cooling Market according to our research experts:

Healthcare to Show Significant Growth

  • Digitization of consumer health records in the form of electronic medical records (EMR) contributes to data increment. The latest innovations in the medical equipment and modernization of legacy operating systems, such as management of personnel, improvement in the patient response systems, etc., generate a multitude of data, further necessitating the need for data centers. This need for data centers, in turn, drives the demand for data center cooling.
  • With digitization creating the most significant impact, investment in healthcare technology
    has been considered as a key priority. According to a report published by Omnia Health Insights in June 2020, telemedicine was also identified as a crucial development for clinics and medical practices, particularly those with a turnover of USD 5-10 million, and more so in the GCC and the Middle East than other regions.
  • For instance, in July 2020, TVM Capital Healthcare raised a second growth capital fund focused on investment in the Gulf. The new fund will have a strong focus on the GCC, but also Saudi Arabia specifically. For its new Gulf-focused fund, the company will look to invest in all areas of health care, except for general hospitals. This has further increased the generation of data records of patients, and in turn, increased the demand for data center cooling technologies in the region.
Middle East And Africa Data Center Cooling Market : Total Consumer Spending in MENA, By Country, 2020

Saudi Arabia to Hold the Highest Market Share

  • Saudi Arabia has recently become one of the technology hubs of the Middle East and Africa region. With major IT and Healthcare firms gaining access to the market, there has been a steep increase in demand for data centers in the region such that the companies can keep their data within the boundaries of the country.
  • Further, Saudi Arabia’s Vision 2030 objectives have led to the technology giants, like Google, Microsoft, and IBM, setting up data centers in the country, with plans to extend the facilities as well.
  • Currently, six areas of the country offer 22 colocation data centers for several private and public enterprises across the globe. Further, in January 2021, BIOS Middle East, a leading provider of cloud and managed IT services in the Middle East, announced it has established two new cloud footprints in Riyadh and Jeddah to serve customers in the Kingdom of Saudi Arabia. Such instances are expected to increase the demand for data center cooling solutions in the country.
Middle East And Africa Data Center Cooling Market : Foreign Direct Investment in Saudi Arabia, 2018-2020

MEA Data Center Cooling Industry Overview

The Middle East and Africa Data Center cooling market is moderately fragmented and consists of several players. In terms of market share, few of the major players currently dominate the market. However, with innovative and sustainable packaging, many of the companies are increasing their market presence by securing new contracts and by tapping new markets.

  • May 2021 - Global technology company SAP has announced its partnership with The National Central Cooling Company PJSC (Tabreed), the leading UAE-based international district cooling developer, in a move that will contribute to the digital transformation of the district cooling industry.

MEA Data Center Cooling Market Leaders

  1. Schneider Electric SE

  2. Daikin Industries Ltd

  3. Johnson Controls International Plc

  4. Mitsubishi Electric Corporation

  5. Munters Group AB

*Disclaimer: Major Players sorted in no particular order

Middle East And Africa Data Center Cooling Market Concentration
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MEA Data Center Cooling Market News

  • July 2021 - The Saudi Ministry of Communications and Information Technology (MCIT) has launched a USD 18 billion plan to build a network of large-scale data centers across the Kingdom.
  • November 2021 - Saudi Telecom announced to build 125 MW of data center of capacity across a total of more than 180,000 square meters (1.9 million sq ft) of land in a SAR 1.5 billion (USD 400 million) expansion project.

MEA Data Center Cooling Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Assessment of Impact of COVID-19 on the Industry

    3. 4.3 Market Drivers

      1. 4.3.1 Development in IT Infrastructure in the Emerging Countries

      2. 4.3.2 Emergence of Green Data Centers

    4. 4.4 Market Restraints

      1. 4.4.1 Adaptability Requirements and Power Outages

    5. 4.5 Industry Policies

    6. 4.6 Industry Value Chain Analysis

    7. 4.7 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Buyers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Solution

      1. 5.1.1 Air Conditioners/Handlers

      2. 5.1.2 Row/Rack/Door/Overhead Cooling Systems

      3. 5.1.3 Chillers

      4. 5.1.4 Liquid Cooling Systems

      5. 5.1.5 Economizer Systems

    2. 5.2 By Service

      1. 5.2.1 Installation and Deployment

      2. 5.2.2 Consulting, Support and Maintenance Services

    3. 5.3 By End-User Vertical

      1. 5.3.1 Information Technology

      2. 5.3.2 BFSI

      3. 5.3.3 Telecommunication

      4. 5.3.4 Healthcare

      5. 5.3.5 Government

      6. 5.3.6 Other End-User Verticals

    4. 5.4 By Country

      1. 5.4.1 United Arab Emirates

      2. 5.4.2 Saudi Arabia

      3. 5.4.3 South Africa

      4. 5.4.4 Rest of MENA

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Vertiv Co.

      2. 6.1.2 Schneider Electric SE

      3. 6.1.3 STULZ GMBH

      4. 6.1.4 Daikin Industries Ltd

      5. 6.1.5 Trane Inc.

      6. 6.1.6 Johnson Controls International Plc

      7. 6.1.7 Mitsubishi Electric Corporation

      8. 6.1.8 Rittal GmbH & Co. KG

      9. 6.1.9 Nortek Air Solutions LLC

      10. 6.1.10 Munters Group AB

      11. 6.1.11 Asetek A/S

      12. 6.1.12 Chilldyne Inc.

      13. 6.1.13 CoolIT Systems Inc.

      14. 6.1.14 Liquid Cool Solutions

      15. 6.1.15 Green Revolution Cooling Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

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MEA Data Center Cooling Industry Segmentation

The cooling technologies considered under the scope of the study are Room Air Conditioning/Computer Room Air Handler units used for room-level cooling. The company also used advanced solution that includes evaporative/adiabatic cooling, direct liquid cooling/immersion cooling, and economizer segment/free cooling.

The study also covers the qualitative and quantitative analysis of the market in a different region of the Middle East market. The study also covers the impact of Covid-19 on the industry.

By Solution
Air Conditioners/Handlers
Row/Rack/Door/Overhead Cooling Systems
Chillers
Liquid Cooling Systems
Economizer Systems
By Service
Installation and Deployment
Consulting, Support and Maintenance Services
By End-User Vertical
Information Technology
BFSI
Telecommunication
Healthcare
Government
Other End-User Verticals
By Country
United Arab Emirates
Saudi Arabia
South Africa
Rest of MENA
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MEA Data Center Cooling Market Research FAQs

The MEA Data Center Cooling Market is projected to register a CAGR of 9.60% during the forecast period (2024-2029)

Schneider Electric SE, Daikin Industries Ltd, Johnson Controls International Plc, Mitsubishi Electric Corporation and Munters Group AB are the major companies operating in the MEA Data Center Cooling Market.

The report covers the MEA Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the MEA Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

MEA Data Center Cooling Industry Report

Statistics for the 2024 MEA Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. MEA Data Center Cooling analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Middle East and Africa Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)