Saudi Arabia Data Center Cooling Market Set to Surge, Projected to Reach USD 894.0 Million by 2030 | Infinium Global Research

Infinium Global Research has added a new report on Saudi Arabia Data Center Cooling Market. The report covers the analysis of regional markets of Saudi Arabia. Moreover, the report gives insights into the factors that affect the regional performance of the market in the short run and in the long run. The Saudi Arabia data center cooling market is a customer intelligence and competitive study of the demand, forecasts, trends, and macro indicators in Saudi Arabia market. The dynamics including drivers, restraints, opportunities, political, socioeconomic factors, technological factors, key trends, and future prospects. The Saudi Arabia data center cooling market, which was valued at USD 306.3 million in 2022, is gearing up for remarkable growth, with a projected CAGR of 16.53% during the forecast period of 2023-2030.

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The surge in demand for cloud solutions across various industries is a primary catalyst driving the expansion of the Saudi Arabia data center cooling market. Industries are undergoing digital transformation, embracing cloud computing to streamline operations and reduce IT costs, which necessitates the establishment of large-scale data centers. Additionally, the market is witnessing the entry of numerous cloud service providers, both regional and global, further fueling its growth. Prominent cloud providers, including SAP, Oracle, and Ali Baba Cloud, have established their data centers within the country. The emergence of local cloud providers has also contributed to this growth trend. However, the market faces challenges due to the high costs associated with data center cooling systems.

Rapid Industrialization and Diverse Industry Growth Driving Demand

Saudi Arabia has witnessed rapid industrialization in recent years, with hydrocarbons, petrochemicals, and mining sectors playing pivotal roles in the country's economy. Furthermore, emerging sectors such as Information and Communications Technology (ICT), healthcare, and renewable energy are gaining traction. The ICT sector alone, valued at over USD 32 billion in 2021 according to the International Trade Administration, is the largest in the Middle East and North Africa region. The healthcare and life sciences industry is also on the rise, thanks to government support.

The government's commitment to these industries is evident in its allocation of approximately USD 18.5 billion for the pharmaceutical and medical devices sectors over the next decade, fostering the growth of local pharmaceuticals and medical devices. As these industries undergo digital transformation, cloud computing solutions are being adopted to drive efficiency and cost reduction. Major entities like Saudi Aramco have partnered with leading cloud providers to migrate operations to the cloud, necessitating the expansion of data centers. This surge in end-use industries and their increased adoption of cloud technologies is a driving force behind the growth of data center cooling in Saudi Arabia.

Rise of Cloud Service Providers in Saudi Arabia

Saudi Arabia has witnessed the establishment of data centers by both regional and global cloud service providers, further intensifying market growth. Prominent providers such as SAP, Oracle, and Ali Baba Cloud have strategically placed their cloud data centers within the country's borders. Local cloud providers have also entered the market, offering cloud-based solutions and setting up their data centers in Saudi Arabia. Key Information and Communications Technology (ICT) companies, including STC, Saudi Information Technology Company (SITE), Al-Kam Telecommunications and IT (V2), have leveraged their data centers to provide cloud solutions to end-users. Recent developments indicate that several companies are planning to expand their data center footprint across Saudi Arabia.

For instance, in July 2021, the Ministry of Communications and Information Technology (MCIT) launched an ambitious USD 18 billion plan to establish a network of large-scale data centers in the country. Saudi Telecom Company (STC) also unveiled plans in February 2022 to transfer its data centers and international submarine cables assets to a new entity. These developments in the cloud industry are poised to drive the demand for data center cooling solutions in Saudi Arabia.

High Costs Associated with Data Center Cooling Pose Challenges

While the Saudi Arabia data center cooling market exhibits significant growth potential, it faces challenges primarily linked to the substantial investment required for setting up and operating data centers. Building data centers entails significant costs, ranging from USD 600 to 1,100 per square foot or USD 7 million to 12 million per megawatt of commissioned IT load. HVAC/cooling systems account for approximately 20% of these costs, in addition to consulting fees ranging from USD 40,000 to 80,000. Furthermore, data center cooling systems consume a substantial amount of energy, contributing to 40-50% of the total electrical load of a data center, as per a White Paper by Uptime Institute & Upsite Technologies. These high costs associated with HVAC/cooling systems may deter widespread adoption.

Government Initiatives Propel Technological Advancements

Saudi Arabia has taken significant strides in digital transformation, especially since the launch of Saudi Vision 2030. With annual investments exceeding USD 3 billion, the country is committed to advancing cloud solutions, cybersecurity controls, data management, e-commerce, and the Internet of Things. Regulatory bodies such as the Ministry of Communications and Information Technology (MCIT), Communications and Information Technology Commission (CITC), Saudi Data and AI Authority (SDAIA), and National Cybersecurity Authority (NCA) are instrumental in setting new regulations and policy frameworks. Initiatives like the Cloud First Policy introduced in 2019, MCIT's USD 18 billion data center plan, and Saudi Arabia's aspiration to become a key data center hub in the Middle East are expected to create significant growth opportunities in the Saudi Arabia data center cooling market.

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Table of Content

Chapter 1. Report Overview

1.1. Report Description

1.2. Research Methods

1.3. Research Approaches

Chapter 2. Executive Summary

Chapter 3. Market Overview

3.1. Introduction

3.2. Market Dynamics

3.2.1.Drivers

3.2.2.Restraints

3.2.3.Opportunities

3.2.4.Challenges

3.3. PEST-Analysis

3.4. Porter's Diamond Model for Saudi Arabia Data Center Cooling Market

3.5. IGR-Growth Matrix Analysis

3.6. Competitive Landscape in Saudi Arabia Data Center Cooling Market

Chapter 4. Saudi Arabia Data Center Cooling Market by Type of Cooling

4.1. Room-based Cooling

4.2. Rack-based Cooling

4.3. Row-based Cooling

Chapter 5. Saudi Arabia Data Center Cooling Market by Type of Data Center

5.1. Enterprise Data Center

5.2. Colocation Data Center

5.3. Wholesale Data Center

5.4. Hyperscale Data Center

Chapter 6. Saudi Arabia Data Center Cooling Market by Industry Vertical

6.1. BFSI

6.2. Manufacturing

6.3. IT & Telecom

6.4. Media & Entertainment

6.5. Retail

6.6. Government & Defense

6.7. Healthcare

6.8. Energy

6.9. Other

Chapter 7. Company Profiles

7.1 Schneider Electric

7.1.1 Overview

7.1.2 Company Overview

7.1.3 Product Portfolio

7.2 Johnson Controls (Al Salem Johnson Controls)

7.2.1 Overview

7.2.2 Company Overview

7.2.3 Product Portfolio

7.3 Munters Group

7.3.1 Company Overview

7.3.2 Product Portfolio

7.4 Alfa Laval

7.4.1 Overview

7.4.2 Company Overview

7.4.3 Product Portfolio

7.5 Ligrand

7.5.1 Overview

7.5.2 Company Overview

7.5.3 Product Portfolio

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Reasons to Buy this Report:

=> Comprehensive analysis of regional markets of Saudi Arabia Data Center Cooling.

=> Complete coverage of all the product types and application segments to analyze the trends, developments, and forecast of market size up to 2030.

=> Comprehensive analysis of the companies operating in this market. The company profile includes an analysis of the product portfolio, revenue, SWOT analysis, and the latest developments of the company.

=> Infinium Global Research- Growth Matrix presents an analysis of the product segments and geographies that market players should focus on to invest, consolidate, expand, and/or diversify.

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