At 14.2% CAGR, the Middle East & Africa Data Center Cooling Market is Projected to be Worth US$ 1,695.34 Million by 2031, Says Business Market Insights

According to Business Market Insights research, the Middle East & Africa data center cooling market was valued at US$ 584.19 in 2023 and is expected to reach US$ 1,695.34 million by 2031, registering a CAGR of 14.2% from 2023 to 2031. AI-optimized cooling and quieter cooling solutions and advancements in liquid cooling technologies are among the critical factors attributed to the Middle East & Africa data center cooling market expansion.

The future trend of AI-optimized cooling in the data center market is expected to gain traction in the coming years as organizations seek to efficiently manage excessive heat generated by using advanced technologies such as AI, machine learning, and edge computing. This trend is driven by the need to maintain optimal operating temperatures for high-density equipment, which is challenging for traditional cooling systems. AI-optimized cooling leverages artificial intelligence to dynamically monitor and adjust cooling systems in real-time, ensuring energy efficiency and hardware reliability in AI-driven data center environments. For instance, in 2024, companies such as Eaton introduced SmartRack modular data center solutions that integrate IT racks, cooling, and service enclosures, catering to the escalating need to incorporate machine learning, edge computing, and AI into the solutions. Additionally, in June 2024, Asetek and Fabric8Labs announced a partnership that might redefine the liquid cooling industry. At Computex 2024, these two innovative companies unveiled the AI-Optimized Cold Plate, a pioneering solution in liquid cooling technology designed to push the boundaries of performance and efficiency. As AI-optimized cooling continues to evolve, it is poised to play a paramount role in shaping the future of data center operations. It offers sustainable and efficient solutions for managing escalating thermal demands in modern data centers.

Cooling systems are often identified as the primary sources of noise in data centers, particularly due to the loud operation of compressors and fans, which can significantly impact the working environment for personnel within the data centers and the surrounding residents or workers. An increasing number of data center operators are acknowledging this concern, with some considering the adoption of liquid immersion cooling as a quieter alternative. In cases where data center operators are not yet ready to embrace immersion cooling, implementing straightforward adjustments to optimize airflow presents an effective strategy for mitigating the noise produced by traditional cooling systems.

On the contrary, high cost associated with data center cooling hampers the growth of Middle East & Africa data center cooling market.

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 segment held 50.5% share of the Middle East & Africa data center cooling market in 2023, amassing US$ 294.80 million. It is projected to garner US$ 917.15 million by 2031 to expand at 15.2% CAGR during 2023–2031.

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 segment held 67.1% share of the Middle East & Africa data center cooling market in 2023, amassing US$ 392.02 million. It is projected to garner US$ 1,111.56 million by 2031 to expand at 13.9% CAGR during 2023–2031.

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 segment held 47.5% share of the Middle East & Africa data center cooling market in 2023, amassing US$ 277.59 million. It is projected to garner US$ 852.91 million by 2031 to expand at 15.1% CAGR during 2023–2031.

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 segment held 39.5% share of the Middle East & Africa data center cooling market in 2023, amassing US$ 230.78 million. It is projected to garner US$ 740.19 million by 2031 to expand at 15.7% CAGR during 2023–2031.

Based on country, the Middle East & Africa data center cooling market is segmented into the UAE, Saudi Arabia, South Africa, and the Rest of Middle East & Africa. The Rest of Middle East & Africa held 42.1% share of Middle East & Africa data center cooling market in 2023, amassing US$ 246.18 million. It is projected to garner US$ 638.22 million by 2031 to expand at 12.6% CAGR during 2023–2031.

Key players operating in the data center cooling market are 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.

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