Growth of Data Centre Cooling Sector in the Middle East

The data centre cooling market in the Middle East and North Africa is anticipated to expand from USD 0.19 billion in 2025 to USD 0.86 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 28.43%, according to findings from Mordor Intelligence.

As the data centre sector becomes one of the fastest growing fields in this area, effective thermal management is increasingly important, with a growth rate of 23% reported for this segment.

Recognizing this trend, Johnson Controls, a longstanding leader in the industry with a history of 140 years (known for inventing the thermostat), is working to enhance its footprint in this region. Recently, the company participated in DCDConnect in Dubai, which convened key players in the data centre industry.

“This event provides a prime opportunity for Johnson Controls to showcase our role in the Middle Eastern market. We are introducing new products and technologies, including our latest magnetic bearing air-cooled screw chiller with a base capacity of around 1.5 megawatts, the YVAM. We are presenting this product alongside our comprehensive lineup of automation, security, and fire solutions. Essentially, we are highlighting the full range of offerings Johnson Controls provides for data centre clients at this well-structured event,” stated Todd Grabowski, President of Global Data Centre Solutions at Johnson Controls.

Highlights from a recent interview:

Data centres are closely connected to advancements in AI but also bring sustainability challenges. What approach are you taking to address these issues?

The featured product focuses directly on these challenges. It aims to enhance efficiency in data centres by minimizing energy consumption for mechanical cooling and reallocating that energy to critical areas within the computing power chain. The YVAM uses approximately 40% less energy than traditional air-cooled chillers. It is designed as a sustainable solution that avoids water usage entirely, thus preventing water waste. Additionally, it operates as the quietest machine in the industry, which is beneficial for data centres located near other facilities, eliminating noise concerns for nearby areas.

What is your vision for the development of the Middle Eastern and African markets?

We regard this as a significant opportunity. Numerous promising projects have already emerged in locations like Dubai and Saudi Arabia. There is extensive potential in this region, particularly with the growth of AI-driven applications influencing the next generation of data centre designs.

How do you foresee the impact of AI growth on the market?

Every time new technology is introduced, it brings about changes in cost structure. As new players enter the scene with more affordable AI models, the market becomes more accessible. This accessibility stimulates growth because a broader range of companies, sectors, and individuals can leverage the technology. With AI becoming more economical, the demand for computing power and data centres is set to rise. Thus, we see AI as a major catalyst for scalability and demand.

What is your outlook on the future of the data centre industry?

As usage increases, demand will continue to expand. Different data centres cater to various purposes; some focus on AI or cloud computing, while others are designed for edge applications where latency is critical. As a partner, we must address these diverse needs. Our solutions are developed to be adaptable and scalable for varying applications and environments—whether in the Middle East or South Africa, as the climate and requirements differ, our technology must be flexible.

What are your plans for expansion in the Middle East?

Our presence in the region underscores our commitment. We have established a strong local team in Dubai and have begun manufacturing locally as well, which sets us apart. These investments signal our long-term intentions in this market and our confidence in its potential.

Business

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