Middle-East Data Center Cooling Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 421.40 Million |
| Market Size (2029) | USD 943.80 Million |
| CAGR (2024 - 2029) | 16.80 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Middle-East Data Center Cooling Market Analysis
The Middle-East Data Center Cooling Market size is estimated at USD 421.40 million in 2024, and is expected to reach USD 943.80 million by 2029, growing at a CAGR of 16.80% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are major factors driving the demand for data centers in the region.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Middle Eastern data center construction market is expected to reach 2,059.5 MW by 2029.
Under Construction Raised Floor Space: The region's construction of raised floor area is expected to increase 9.7 million sq. ft by 2029.
Planned Racks: The region's total number of racks to be installed is expected to reach 496K units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029.
The Middle East has a Mediterranean climate with hot, dry summers and mild, rainy winters. However, harsh winter conditions continue in the mountains of Iran and Iraq. Precipitation is generally meager, ranging from 350 mm to 750 mm annually. The region is known for being hot and dry. The choice of cooling technology is typically based on the geographic location of the data center.
Planned Submarine Cables: Close to 26 submarine cable systems are connecting the Middle East, and many are under construction. One submarine cable, Blue, is projected to begin service in 2024. It spans over 4,696 kilometers and has a landing point in Tel Aviv.
Middle-East Data Center Cooling Market Trends
The Information Technology Industry is Expected to Experience the Highest Growth
- To facilitate the transition to knowledge-based economies, the governments of the United Arab Emirates and Saudi Arabia are prioritizing digital initiatives such as 5G. With national consumer initiatives such as digital payments, smartphones are leading the transition to a digital lifestyle. The main drivers of this expansion were larger markets such as Iraq and Egypt, which continued to grow despite their huge current user bases. With the proliferation of smartphones and the use of 5G devices, the amount of raw data is expected to grow. More smartphone users can lead to increased data consumption and increased internet usage. The need for more data centers has increased the demand for cooling equipment in the region.
- The introduction of various OTT platforms and increased speeds will increase the demand for rack space, increasing the number of data centers, which will likely increase the demand for cooling equipment in the Middle East.
- Many large cloud providers have entered the region to take advantage of this greenfield market. This also increases the need for data center cooling. Additionally, local weather makes cooling solutions a priority for data centers.
- The dual impact of COVID-19 and plummeting oil prices had multiple economic implications across the Gulf region. Despite the economic slowdown, sectors of the economy, internet service providers (ISPs), information technology (IT), infrastructure providers, and data centers, are seeing increased demand, mainly due to the shift to telecommuting and remote work. This marks the growing demand for the data center cooling market in the region.
- The data center industry is starting to gain momentum with investments from cloud service providers such as Google and Oracle. In Saudi Vision 2030, Oracle partners with NEOM Tech & Digital Hold Co. to become the first tenant of NEOM's hyperscale data center. Oracle Cloud Infrastructure (OCI) is intended to provide a high-performance, resilient platform for cloud services housed in data centers and driving demand for cooling equipment.
Saudi Arabia to Hold the Highest Market Share
- Saudi Arabia has emerged as one of the technology hubs in the Middle East and Africa. As big IT and healthcare companies gain access to the market, demand for data centers in the region is soaring so that companies can store their data within borders.
- Additionally, Saudi Arabia's Vision 2030 goals have seen tech giants such as Google, Microsoft, and IBM build data centers and plan to expand their facilities.
- 4G usage is increasing due to social media and smartphone penetration. 4G service in the country is driven by high mobile video consumption. For example, 43% of smartphone users aged 16-29 watch on-demand video every week. About 62% of people watch videos using a smartphone or tablet. With almost 660 million 5G subscribers projected by the end of 2023, 5G is set to become the fastest mobile generation to date.
- Saudi Arabia's FTTH (fiber-to-the-home) broadband subscriber numbers have doubled due to the availability of high-speed internet plans, increased internet usage, expanded options, and quality services tailored to healthcare, business, and education. The growth in data storage has accompanied the expansion of data centers, increasing the need for data center cooling in this region.
- Customers in Saudi Arabia are spending more time and money online, increasing demand for e-commerce in the region. This increase is due to digital payment methods. As a result, 26% of Saudi consumers now use digital wallets for their transactions. In Saudi Arabia, 69-85% of online orders are cash on delivery, and e-wallets such as PayPal, Amazon Payments, and Google Wallet account for 24% of total turnover. The country's data centers will benefit from the digitization of the e-commerce sector as more data is processed and stored. Such incidents in the country are expected to boost demand for data center cooling manufacturers in the coming years.
Middle-East Data Center Cooling Industry Overview
The Middle Eastern data center cooling market is highly competitive and has many significant players, some dominating the market. Market penetration is growing with a strong presence of major players, such as Schneider Electric SE, Daikin Industries Ltd, Johnson Controls International PLC, Electric Corporation, and Munters Group AB in established markets. With the increasing focus on innovation, the demand for new technologies, such as liquid-based cooling and portable cooling technologies, is also growing, which, in turn, is driving investments for further developments in the region.
January 2023: ALEC, a UAE-based company, expanded its reach to Saudi Arabia with ALEC Data Center Solutions. The state-of-the-art data center infrastructure, utilizing cutting-edge liquid cooling technology, provides regional businesses with cloud services and data storage solutions.
Middle-East Data Center Cooling Market Leaders
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Munters Group AB
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Mitsubishi Electric Corporation
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Johnson Controls International Plc
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Daikin Industries Ltd
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Schneider Electric SE
*Disclaimer: Major Players sorted in no particular order
Middle-East Data Center Cooling Market News
April 2024: Carrier Global Corporation partnered with Strategic Thermal Labs to develop direct-to-chip cooling technology. Under this partnership, Carrier will leverage the advancement in direct-to-chip technology and incorporate it into their data center cooling solution.
October 2023: Mitsubishi Heavy Industries Ltd introduced a new 40kVA-class 12ft container-type data center with an immersion/air-cooled hybrid cooling system capable of simultaneously housing servers utilizing three types of cooling methods: air cooling (8kVA), immersion cooling (25kVA), and water cooling (8kVA).
Middle-East Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption & Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increasing Trend of High-Performance Computing across Europe
- 4.2.2 Growing Rack Power Density
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4.3 Market Restraints
- 4.3.1 High Initial Investments
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of the COVID-19 Impact
5. MARKET SEGMENTATION
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5.1 Cooling Technology
- 5.1.1 Air-based Cooling
- 5.1.1.1 CRAH
- 5.1.1.2 Chiller and Economizer
- 5.1.1.3 Cooling Tower
- 5.1.1.4 Other Air-based Cooling
- 5.1.2 Liquid-based Cooling
- 5.1.2.1 Immersion Cooling
- 5.1.2.2 Direct-to-chip Cooling
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5.2 End User
- 5.2.1 IT & Telecommunication
- 5.2.2 BFSI
- 5.2.3 Government
- 5.2.4 Media & Entertainment
- 5.2.5 Other End Users
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5.3 Country
- 5.3.1 Saudi Arabia
- 5.3.2 United Arab Emirates
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Stulz GmbH
- 6.1.2 Rittal GMBH & Co.KG
- 6.1.3 Schneider Electric SE
- 6.1.4 Vertiv Group Corp.
- 6.1.5 Mitsubishi Electric Hydronics & IT Cooling Systems SpA
- 6.1.6 Asetek A/S
- 6.1.7 Johnson Controls International PLC
- 6.1.8 Fujitsu General Limited
- 6.1.9 Airedale International Air Conditioning
- 6.1.10 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityMiddle-East Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The Middle Eastern data center cooling market is segmented by cooling technology (air-based cooling (CRAH, chillers and economizers, and cooling towers), liquid-based cooling (immersion cooling and direct-to-chip cooling), end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of value for all the above segments.
Middle-East Data Center Cooling Market Research FAQs
How big is the Middle-East Data Center Cooling Market?
The Middle-East Data Center Cooling Market size is expected to reach USD 421.40 million in 2024 and grow at a CAGR of 16.80% to reach USD 943.80 million by 2029.
What is the current Middle-East Data Center Cooling Market size?
In 2024, the Middle-East Data Center Cooling Market size is expected to reach USD 421.40 million.
Who are the key players in Middle-East Data Center Cooling Market?
Munters Group AB, Mitsubishi Electric Corporation, Johnson Controls International Plc, Daikin Industries Ltd and Schneider Electric SE are the major companies operating in the Middle-East Data Center Cooling Market.
What years does this Middle-East Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Middle-East Data Center Cooling Market size was estimated at USD 350.60 million. The report covers the Middle-East Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle-East Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle-East Data Center Cooling Industry Report
Statistics for the 2024 Middle-East Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle-East Data Center Cooling analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
