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

The Middle East & Africa data center cooling market size is expected to reach US$ 1,695.34 million by 2031 from US$ 584.19 million in 2023. The market is estimated to record a CAGR of 14.2% from 2023 to 2031.

Executive Summary and Middle East & Africa Data Center Cooling Market Analysis:

The adoption of data center cooling in the Middle East & Africa is witnessing significant developments and investments. In May 2022, Microsoft Corp. and G42 announced a comprehensive package of digital investments in Kenya as part of an initiative with the Republic of Kenya's Ministry of Information, Communications and the Digital Economy. In collaboration with Microsoft and other stakeholders, G42 will lead the arrangement of an initial investment of US$ 1 billion in various components outlined in the comprehensive package. One of the Kenyan investment priorities is a state-of-the-art green data center that G42 and its partners will build to run Microsoft Azure in East Africa Cloud Region. The initiative demonstrates a commitment to technological advancement and environmental sustainability through the use of renewable energy sources for data center operations. This is expected to boost the adoption of data center cooling systems in the MEA during the forecast period. Furthermore, the data center cooling market in the MEA is expected to witness steady growth, supported by increased economic development and investments in the ICT industry in the region. These developments underscore the region's commitment to adopting advanced cooling technologies to meet the evolving demands of data center operations and support the digital transformation of the region.

Middle East & Africa Data Center Cooling Market Strategic Insights

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Middle East & Africa Data Center Cooling Market Segmentation Analysis

Key segments that contributed to the derivation of the Middle East & Africa data center cooling market analysis are component, cooling type, data center type, and industry vertical.

• Based on component, the Middle East & Africa data center cooling market is segmented into air conditioning system, chillers, air handling units, cooling towers, heat exchangers, humidifiers, and others. The air conditioning system held the largest share of the market in 2023.
• Based on cooling type, the Middle East & Africa data center cooling market is segmented into room based cooling, row based cooling, and rack based cooling. The room based cooling held the largest share of the market in 2023.
• Based on data center type, the Middle East & Africa data center cooling market is segmented into hyperscale data center, colocation data center, wholesale data center, and enterprise data center. The hyperscale data center held the largest share of the market in 2023.
• Based on industry vertical, the Middle East & Africa data center cooling market is segmented into IT and telecom, BFSI, healthcare, manufacturing, government and defense, media and entertainment, retail, energy, and others. The IT and telecom held the largest share of the market in 2023.

Middle East & Africa Data Center Cooling Market Outlook

Liquid cooling has emerged as an optimal solution to meet the requirements of the high-performance computing (HPC) and data center industries. By negating the necessity for continuous air circulation, liquid cooling markedly diminishes utility consumption, thereby enhancing the energy efficiency of the facility. Liquid cooling technologies have emerged as a popular solution, with ~40% of data centers utilizing it. Companies are forming strategic partnerships to participate in the advancements of liquid cooling technologies. For instance, Mitsubishi Heavy Industries, Ltd. (MHI) and ZutaCore, Inc. formed a strategic partnership in September 2023 to advance sustainable liquid cooling solutions for the data industry to achieve energy efficiency and zero emissions. This collaboration involves MHI's investment in ZutaCore and a white-label sales agreement, combining ZutaCore's HyperCool dielectric direct-liquid-cooling technology with MHI's extensive product line and technological expertise at a global scale. ZutaCore's HyperCool technology is a waterless, direct-on-chip liquid cooling solution that aims to bridge the gap between data industry sustainability and ever-increasing computing power. It delivers 10x more computing, a 50% total cost of ownership (TCO) reduction, and 100% heat reuse, as well as reduces CO₂ emissions. This technology is designed to move large amounts of heat off the chip effectively and safely, with no practical limit to heat dissipation. It also aims to reduce the consumption of scarce resources, including energy, water, and land, while reducing capital and operating expenses. This partnership aims to expedite the growth of sustainable liquid cooling solutions crucial for energy efficiency. The comprehensive solution provided by this collaboration offers unprecedented benefits to high-performance computing workloads, server densification, and data center sustainability.

In 2024, STULZ, a global mission-critical air conditioning specialist, unveiled the CyberCool CMU, a cutting-edge coolant management and distribution unit (CDU) designed to optimize heat exchange efficiency in liquid cooling solutions. This innovative unit is set to be launched at Data Centre World Frankfurt 2024, scheduled in May, from 22^nd to 23^rd, at Messe Frankfurt. The CyberCool CMU is engineered to offer industry-leading levels of energy efficiency, flexibility, and reliability within a small footprint while providing precise control over an entire liquid cooling system. This development aligns with the ongoing efforts to address the escalating heat challenges in data centers and support the evolving demands of various sectors. Thus, advancements in liquid cooling technologies are expected to create lucrative opportunities for the data center cooling market growth in the coming years.

Middle East & Africa Data Center Cooling Market Country Insights

Based on country, the Middle East & Africa data center cooling market comprises the UAE, Saudi Arabia, South Africa, and the Rest of Middle East & Africa. The Rest of Middle East & Africa held the largest share in 2023.

Israel and Egypt are among the key countries in the Rest of MEA. The data center cooling market growth in these countries is driven by collaboration and partnership initiatives by companies in this market. For instance, in December 2023, Nutanix and Raya Data Centers, a premier data center solution and service provider in Egypt, signed a Memorandum of Understanding (MoU) to deliver cloud computing solutions and services tailored for the public and enterprise sectors in the country. Furthermore, the market is fueled by the increased focus of government and private stakeholders on the development of data centers and accelerating cloud computing services, which is expected to propel the data center cooling market growth in the Rest of MEA.

Middle East & Africa Data Center Cooling Market Report Highlights

Middle East & Africa Data Center Cooling Market Company Profiles

Some of the key players operating in the market Asetek, Inc; Mitsubishi Corp; Stulz SpA; Vertiv Group Corp.; Aspen Systems, LLC.; Daikin Industries Ltd; Delta Electronics Inc; Danfoss AS; Motivair Corporation; Madison Industries; Fujitsu Ltd; Rittal GmbH & Co KG; Schneider Electric SE; Trane Technologies Plc; Black Box Corporation; Carrier Global Corp; Alfa Laval AB; Hewlett Packard Enterprise Development LP; Boyd Corp; and Evapco Inc, among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Middle East & Africa Data Center Cooling Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.
• Industry trade journals and other relevant publications.
• Government documents, statistical databases, and market reports.
• News articles, press releases, and webcasts specific to companies operating in the market.

Note: All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

• Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.
• Enhance the expertise and market understanding of the analysis team.
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

Middle East & Africa Data Center Cooling Market Country and Regional Insights