Data centre cooling market expanding in the Middle East

Khaleej Times

23-04-2025

The Middle East and North Africa data centre cooling market is projected to grow from USD 0.19 billion in 2025 to USD 0.86 billion by 2031, at a CAGR of 28.43 per cent, according to a report by Mordor Intelligence.
With the data centre market is being one of the fastest growing industries in this region. With the surge, thermal management is getting crucial, and that market is growing at a CGAR of 23 per cent, research shows.
Sensing this demand, Johnson Controls, one of the oldest players in the industry with a legacy spanning 140 years (they invented the thermostat), is actively expanding its presence in the region. The company recently took part in DCDConnect in Dubai, that brought together major participants in the data centre space.
'It's a great event for Johnson Controls to demonstrate our presence in the Middle East marketplace. We're launching new products and new technologies. One of them is our new magnetic bearing air-cooled screw chiller with a base tonnage of about 1.5 megawatts, YVAM. We're showcasing that product here along with our full range of technologies in automation, security, and fire. Basically, we're showing everything Johnson Controls can offer to data centre customers at this very well-organized event,' said Todd Grabowski, President of Global Data Centre Solutions at Johnson Controls.
Excerpts from an interview:
Data centres have been closely tied to AI advancements but also raise sustainability concerns. How are you addressing that?
The product we're showcasing here is built around that concern. It's about making data centres more efficient. How do you use less energy for mechanical cooling and redirect that energy to where it really matters — the compute power chain. Our new YVAM product uses about 40 per cent less energy than a conventional air-cooled chiller. It's a sustainable system that doesn't use water, so it avoids water waste. It's also the quietest machine in the industry, which is helpful when you're building data centres near other infrastructure. Noise won't be a concern for surrounding areas.
How do you see the Middle East and Africa market developing?
We see it as a great opportunity. There are already some strong projects announced in places like Dubai and Saudi Arabia. We believe this region holds great potential, especially with the rise of AI-based applications that are shaping the next generation of data centre builds.
How do you think the growth of AI will affect the market?
Every time a new technology enters, there's a shift in affordability. When new players introduce more cost-effective AI models, the market becomes more accessible. That leads to growth because more companies, industries, and individuals can use the technology. As AI becomes more affordable, the demand for compute power and data centres increases. So we see AI as a big driver of scalability and demand.
What's your view on the future growth of the data centre industry?
As usage increases, demand will also grow. Not every data centre is built for the same purpose. Some focus on AI or cloud computing, while others are built for edge applications where latency matters. As a partner, we need to support all of these needs. Our solutions are made to be flexible and scalable for different use cases and environments — whether it's the Middle East or South Africa, the climate and requirements vary, so our technology must adapt accordingly.
What are your expansion plans in the Middle East?
Our presence here speaks to our commitment to the region. We have a strong local team in Dubai and now we're manufacturing in the region too. That's a big differentiator for us. These investments are a sign of our long-term plans in this market and our belief in the potential here.