Study Of Data Center Water Consumption In The Middle East And Africa Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Study of Data Center Water Consumption in the Middle East and Africa Market is Segmented by Source of Water Procurement (Potable Water, Non-Portable, and More), Data Center Type (Enterprise, Colocation, and More), Data Center Size (Small, Medium, Large and More), Cooling Technology (Chilled-Water Systems, Indirect Evaporative, and More), and by Geography. The Market Forecasts are Provided in Terms of Volume (Billion Liters).

Study Of Data Center Water Consumption In The Middle East And Africa Market Size and Share

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Study Of Data Center Water Consumption In The Middle East And Africa Market Analysis by Mordor Intelligence

The Middle East & Africa data center water consumption market reached 119.34 billion liters in 2025 and is forecast to scale to 426.31 billion liters by 2030, reflecting a solid 29.00% CAGR. The jump aligns with rapid build-outs of new capacity across the Gulf Cooperation Council, intensifying adoption of liquid-based cooling that safeguards equipment in ambient temperatures often above 40 °C. Surging AI inference and training clusters are elevating rack densities to 250 kW, tripling typical heat loads and lifting cooling water demand. Operators are responding with closed-loop systems, desalination tie-ins, and onsite treatment that recycle up to 96% of process water. The interplay of national water-security mandates and hyperscale growth is setting clear commercial incentives to cut municipal withdrawals, making water stewardship a front-of-mind metric for customers and investors alike.

Key Report Takeaways

  • By source of water procurement, potable water retained 58% of Middle East & Africa data center water consumption market share in 2024, whereas non-potable or greywater is projected to advance at a 29.5% CAGR to 2030.
  • By data center type, colocation facilities accounted for 47% revenue share in 2024, while the cloud segment is on track for a 30.25% CAGR through 2030.
  • By data center size, large facilities held 35% of the Middle East & Africa data center water consumption market size in 2024, and mega facilities are expanding at a 29.8% CAGR between 2025 and 2030.
  • By cooling technology, chilled-water systems led with a 50% share in 2024; direct liquid cooling is the fastest-growing at a 32.5% CAGR through 2030.
  • By geography, the GCC commanded a 48% share of the Middle East & Africa data center water consumption market in 2024, whereas East Africa posts the highest regional CAGR at 29.7% out to 2030.

Segment Analysis

By Source of Water Procurement: Potable Water Dominates Despite Sustainability Pressures

Potable water held 58% of Middle East & Africa data center water consumption market share in 2024, reflecting the maturity of municipal networks and the reliability of treated supplies. Operators, however, face tariff increases that are eroding cost advantages and exposing projects to potential rationing during peak demand seasons. Non-potable and greywater streams, therefore, present a path to resilience, especially in emirates where reclaimed wastewater already meets a sizeable share of public green-space irrigation.

The non-potable segment is growing at a 29.5% CAGR as hyperscalers sign offtake agreements with wastewater utilities and finance tertiary treatment upgrades. In East Africa, atmospheric capture units and rooftop harvesting systems are enabling start-ups to cool edge racks with negligible potable demand. These shifts imply that the Middle East & Africa data center water consumption market size tied to non-potable sources could surpass one-third of total demand before 2030. Desalinated seawater and brackish groundwater are also joining the procurement mix, underpinned by renewable energy that limits indirect emissions.

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Note: Segment shares of all individual segments available upon report purchase

By Data Center Type: Colocation Providers Lead Water Efficiency Innovations

Colocation vendors captured 47% of the Middle East & Africa data center water consumption market size in 2024 by spreading advanced cooling assets over multi-tenant footprints. High utilization rates create steady thermal loads that justify investment in sealed chilled-water loops and waste-heat recovery to nearby buildings. Some Gulf campuses report Water Usage Effectiveness below 0.02, signalling best-in-class stewardship.

Cloud service providers are recording the fastest 30.25% CAGR as hyperscalers roll out direct liquid cooling at new availability zones. The Middle East & Africa data center water consumption market benefits when single-tenant facilities adopt near-ambient liquid loops that operate without evaporative towers. Enterprise sites remain smaller but are piloting modular immersion enclosures that can be installed without major plant retrofits, widening access to efficient cooling across the region.

By Data Center Size: Large Facilities Dominate While Mega Centers Grow Fastest

Large campuses commanded 35% of the Middle East & Africa data center water consumption market share in 2024 due to early investments by telecom incumbents. These sites typically combine evaporative assistance in winter with chilled-water circuits in summer, balancing water and power spends. Recycling systems now recover up to 96% of blow-down and condensate, trimming utility bills and improving ESG scores.

Mega centers above 100 MW, often located in Saudi Arabia free zones, are expanding at a 29.8% CAGR. Designs include underground thermal storage and onsite desalination powered by photovoltaic arrays. As a result, the Middle East & Africa data center water consumption market size anchored in mega projects is poised to triple within five years. Small and midsize facilities continue to adopt prefabricated modules that integrate nanofiltration and UV to meet emerging compliance thresholds.

Study of Data Center Water Consumption In The Middle East And Africa: Market Share by Data Center Size
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Note: Segment shares of all individual segments available upon report purchase

By Cooling Technology: Chilled-Water Systems Maintain Dominance as Direct Liquid Cooling Surges

Chilled-water systems retained a 50% share in 2024 thanks to proven reliability and compatibility with both low-density and mixed-density halls. Operators enhance efficiency through variable speed drives and AI-driven control algorithms that adapt flow rates to live thermal maps. These steps are critical for the Middle East & Africa data center water consumption market, where summers push wet-bulb temperatures to extremes.

Direct liquid cooling is scaling fastest at a 32.5% CAGR because it removes heat at the chip and reduces reliance on high makeup water volumes. Vendors deliver cold plates pre-charged with biodegradable dielectric fluids, enabling top-up cycles of once a year rather than daily. Hybrid deployments combine DLC on AI pods with chilled-water coils on traditional IT, creating balanced portfolios that future-proof new builds. This trend is pivotal for long-run reductions in the Middle East & Africa data center water consumption market footprint.

Geography Analysis

The GCC accounted for 48% of the Middle East & Africa data center water consumption market in 2024, backed by sovereign funds that prioritize digital infrastructure within national diversification agendas. United Arab Emirates facilities are pairing waste heat with adjacent desalination trains that push brine rejects to solar ponds, closing water loops in deserts where precipitation is under 100 mm annually. Saudi Arabia’s Red Sea giga-projects deploy photovoltaic-powered reverse-osmosis and use the reject heat to drive absorption chillers for adjacent GPU farms, reinforcing circular resource flows.

East Africa posts the fastest 29.7% CAGR on the back of undersea cable landings and national cloud strategies. Kenya’s upcoming 1 GW green zone integrates treated effluent from nearby municipal plants into data hall cooling loops, showcasing a replicable model for other cities facing tight freshwater quotas. Rainwater harvesting tanks and atmospheric moisture capture backstop supply during drought cycles, positioning the region as a test bed for resilient designs.

North Africa is gaining traction as Egypt leverages its crossroads location to host connectivity hubs that also serve European workloads during seasonal peaks. Integration with Nile River treated sewage effluent creates cost savings, though climate variability elevates the value of redundant groundwater rights. Southern Africa remains a mature node with Johannesburg and Cape Town clusters moving toward greywater cooling as utility tariffs climb. Regional collaboration on shared treatment infrastructure will influence how the Middle East & Africa data center water consumption market evolves beyond 2030.

Competitive Landscape

The Middle East & Africa data center water consumption market is moderately concentrated, with international platforms such as Equinix and Digital Realty operating alongside regional champions including Khazna Data Centers and Africa Data Centres. Barriers to entry stem from capital intensity, energy availability, and permitting complexity tied to water use. Differentiation is shifting toward water performance indicators as customers integrate sustainability clauses into service-level agreements.

Strategic alliances with technology suppliers give operators an edge. DataVolt partners with Aquatech to embed zero liquid discharge and membrane distillation that reclaims near 100% of the cooling loop blowdown. Equinix embeds its sites within a green finance framework that earmarks proceeds for water efficiency projects. OEMs such as 2CRSi deliver rack-integrated cold-plate assemblies that lower both water and power footprints.

Regional policy shifts accelerate competition. Gulf regulators now publish public dashboards of data center WUE, allowing customers to benchmark suppliers. This transparency rewards early movers who invested in closed-loop cooling and onsite desalination. Supply chain partnerships with membrane vendors and UV system integrators unlock cost economies, strengthening the strategic posture of firms that can finance entire water ecosystems in one capital cycle.

Study Of Data Center Water Consumption In The Middle East And Africa Industry Leaders

  1. Equinix, Inc.

  2. Digital Realty Trust Inc.

  3. MEEZA

  4. Etisalat

  5. Africa Data Centres

  6. *Disclaimer: Major Players sorted in no particular order
Study Of Data Center Water Consumption In The Middle East And Africa Concentration
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Recent Industry Developments

  • April 2025: NVIDIA launched the Blackwell platform, improving liquid cooling efficiency 300-fold for AI workloads
  • March 2025: The GCC formed a regional water security task force to coordinate desalination and wastewater reuse programs that benefit data center projects
  • February 2025: Africa Data Centres disclosed municipal withdrawals of only 6,242 liters in FY24 and announced rainwater harvesting retrofits
  • January 2025: Khazna Data Centers deployed a closed-loop cooling system achieving near-zero WUE

Table of Contents for Study Of Data Center Water Consumption In The Middle East And Africa Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 GCC Net-Zero Water Policies Accelerating Closed-Loop Cooling Adoption
    • 4.2.2 AI and High-Density Workloads Boosting Advanced Water-Cooling Demand
    • 4.2.3 Rising Middle-East Water Tariffs Driving Re-use Investments
    • 4.2.4 Expansion of Edge DCs in Sub-Saharan Africa Leveraging Local Non-Potable Sources
    • 4.2.5 Large-Scale Renewable-Powered Desalination Co-location Opportunities
    • 4.2.6 ESG-Linked Financing Incentives for Water-Efficiency Retrofits
  • 4.3 Market Restraints
    • 4.3.1 Intensifying Water-Rights Regulation in Water-Stressed African Nations
    • 4.3.2 High Capex of Membrane-Based Water Treatment
    • 4.3.3 Limited Skilled Workforce for Advanced Recycling Systems
    • 4.3.4 Intermittent Municipal Supply in Remote Areas
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory and Technological Outlook
  • 4.6 Porter's Five Forces
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Suppliers
    • 4.6.3 Bargaining Power of Buyers
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Industry Rivalry
  • 4.7 Industry Regulations and Standards
  • 4.8 Case Study Analysis: Re-use Water (Grey, Rain, By-product, Evaporative)
  • 4.9 Key Considerations in Water-Scarce Areas
  • 4.10 Water Treatment Methods (Filtration, RO, UV, Chemical, Softening, Others)
  • 4.11 Data Center Industry Outlook
    • 4.11.1 Current DC Footprint
    • 4.11.2 Global Breakdown of DC Footprint
    • 4.11.3 Major Hotspots for DC Investments

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Source of Water Procurement
    • 5.1.1 Potable Water
    • 5.1.2 Non-Potable / Greywater
    • 5.1.3 Alternative Sources (Ground, Surface, Sea, Produced and Rain-water)
  • 5.2 By Data Center Type
    • 5.2.1 Enterprise
    • 5.2.2 Colocation
    • 5.2.3 Cloud Service Providers
    • 5.2.4 Hyperscale
  • 5.3 By Data Center Size
    • 5.3.1 Small
    • 5.3.2 Medium
    • 5.3.3 Large
    • 5.3.4 Massive
    • 5.3.5 Mega
  • 5.4 By Cooling Technology
    • 5.4.1 Chilled-Water Systems
    • 5.4.2 Indirect Evaporative / Adiabatic
    • 5.4.3 Direct Liquid Cooling
    • 5.4.4 Other Hybrid Solutions
  • 5.5 By Geography
    • 5.5.1 GCC (UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait)
    • 5.5.2 Levant (Jordan, Lebanon, Israel)
    • 5.5.3 Rest of Middle East (Turkey, Iraq, Iran)
    • 5.5.4 North Africa (Egypt, Morocco, Algeria)
    • 5.5.5 East Africa (Kenya, Ethiopia, Tanzania)
    • 5.5.6 West Africa (Nigeria, Ghana, Senegal)
    • 5.5.7 Southern Africa (South Africa, Angola)

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 Equinix Inc.
    • 6.4.2 Digital Realty Trust Inc.
    • 6.4.3 Etisalat
    • 6.4.4 MEEZA
    • 6.4.5 Africa Data Centres
    • 6.4.6 Gulf Data Hub
    • 6.4.7 Teraco Data Environments
    • 6.4.8 Raxio Group
    • 6.4.9 Khazna Data Centers
    • 6.4.10 Digital Parks Africa
    • 6.4.11 Ooredoo Data Centers
    • 6.4.12 STC / Saudi Data Centers
    • 6.4.13 Moro Hub (DEWA)
    • 6.4.14 Teraco Data Environments
    • 6.4.15 Liquid Intelligent Technologies
    • 6.4.16 IXAfrica Data Centres
    • 6.4.17 MainOne (Equinix Nigeria)
    • 6.4.18 Paratus Africa
    • 6.4.19 Rack Centre
    • 6.4.20 Open Access Data Centres

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-Space and Unmet-Need Assessment
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Study Of Data Center Water Consumption In The Middle East And Africa Report Scope

  • The study tracks the critical applications of water for running large data centers, such as DC cooling, and power generation. The study also includes key applications based on the Water Consumption in Data Centers. The study also includes the overall water consumption based on the DC footprint across regions in terms of billion liters. Lastly, the study tracks the underlying trends and developments conceptualized by leading industry data center operators and cloud service providers.
  • The Study of Data Center Water Consumption in the Middle East and Africa is Segmented by Source of Water Procurement (Potable Water, Non-Potable Water, Other Alternate Sources), by Data Center Type (Enterprise, Colocation, Cloud Service Providers), and by Data Center Size (Mega, Massive, Large, Medium, Small). The Market Sizes and Forecasts are Provided in Terms of Volume (Billion Liters).
By Source of Water Procurement Potable Water
Non-Potable / Greywater
Alternative Sources (Ground, Surface, Sea, Produced and Rain-water)
By Data Center Type Enterprise
Colocation
Cloud Service Providers
Hyperscale
By Data Center Size Small
Medium
Large
Massive
Mega
By Cooling Technology Chilled-Water Systems
Indirect Evaporative / Adiabatic
Direct Liquid Cooling
Other Hybrid Solutions
By Geography GCC (UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait)
Levant (Jordan, Lebanon, Israel)
Rest of Middle East (Turkey, Iraq, Iran)
North Africa (Egypt, Morocco, Algeria)
East Africa (Kenya, Ethiopia, Tanzania)
West Africa (Nigeria, Ghana, Senegal)
Southern Africa (South Africa, Angola)
By Source of Water Procurement
Potable Water
Non-Potable / Greywater
Alternative Sources (Ground, Surface, Sea, Produced and Rain-water)
By Data Center Type
Enterprise
Colocation
Cloud Service Providers
Hyperscale
By Data Center Size
Small
Medium
Large
Massive
Mega
By Cooling Technology
Chilled-Water Systems
Indirect Evaporative / Adiabatic
Direct Liquid Cooling
Other Hybrid Solutions
By Geography
GCC (UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait)
Levant (Jordan, Lebanon, Israel)
Rest of Middle East (Turkey, Iraq, Iran)
North Africa (Egypt, Morocco, Algeria)
East Africa (Kenya, Ethiopia, Tanzania)
West Africa (Nigeria, Ghana, Senegal)
Southern Africa (South Africa, Angola)
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Key Questions Answered in the Report

What is the projected size of the Middle East & Africa data center water consumption market by 2030?

The market is forecast to reach 426.3 billion liters by 2030, up from 119.3 billion liters in 2025.

Which cooling technology is growing fastest in the region?

Direct liquid cooling is expanding at an estimated 32.5% CAGR through 2030 because it removes heat at the chip and cuts water use by up to 45% compared with air systems.

Why do GCC countries dominate the market today?

High digital-infrastructure investment and ambitious water-neutrality mandates make GCC data centers both numerous and water intensive, resulting in a 48% market share in 2024.

How are operators mitigating rising water tariffs?

They invest in onsite recycling, sign reclaimed-water offtake agreements, and adopt closed-loop cooling that can recycle up to 96% of process water, lowering exposure to tariff hikes.

What role do non-potable sources play in future growth?

Greywater and desalinated seawater supply is growing at a 29.5% CAGR, and analysts expect non-potable streams to exceed one-third of total consumption before 2030.

Which segment shows the highest growth rate by data center type?

Cloud service provider facilities are forecast to post a 30.25% CAGR as hyperscalers deploy large AI clusters that rely on water-efficient direct liquid cooling.

Page last updated on: July 1, 2025