Growth of Data Centre Cooling Industry in the Middle East

The cooling market for data centres in the Middle East and North Africa is anticipated to grow from USD 0.19 billion in 2025 to USD 0.86 billion by 2031, representing a compound annual growth rate (CAGR) of 28.43%, as reported by Mordor Intelligence.

As the data centre sector emerges as one of the fastest-expanding industries in this area, effective thermal management is becoming increasingly vital. Research indicates that this sector is growing at a CAGR of 23%.

Capitalizing on this increasing need, Johnson Controls, a veteran in the industry with a history of 140 years (known for inventing the thermostat), is actively enhancing its operations in the region. The company recently participated in DCDConnect in Dubai, an event that gathered key stakeholders within the data centre field.

“This event is an excellent platform for Johnson Controls to showcase our involvement in the Middle Eastern market. We are unveiling new products and technologies, including our latest magnetic bearing air-cooled screw chiller, the YVAM, which has a base tonnage of approximately 1.5 megawatts. At this well-organized event, we are presenting this product alongside our comprehensive array of solutions in automation, security, and fire safety,” stated Todd Grabowski, President of Global Data Centre Solutions at Johnson Controls.

Interview Highlights:

Data centres are intricately linked to advancements in AI, which also presents sustainability challenges. How are you tackling these issues?

The product we are featuring is developed with these concerns in mind. It’s designed to enhance the efficiency of data centres by minimizing energy use for mechanical cooling and reallocating that energy where it truly counts—in the computing power chain. Our new YVAM chiller consumes about 40% less energy compared to traditional air-cooled chillers. It is also a water-free solution, eliminating water wastage, and is the quietest machine in its class, mitigating noise concerns when data centres are located near other infrastructure.

What is your outlook on the development of the Middle Eastern and African market?

We view it as an exceptional opportunity, especially with significant projects emerging in locations like Dubai and Saudi Arabia. This region shows immense potential, particularly with the growing adoption of AI-centric applications that are influencing the next generation of data centre constructions.

In your opinion, how will the rise of AI influence the market?

Whenever a new technology emerges, it often leads to changes in cost structures. As new companies bring forth more economical AI solutions, the market becomes increasingly accessible. This drives growth, enabling more businesses, industries, and individuals to leverage the technology. As AI becomes more affordable, the demand for computing power and data centres will rise, positioning AI as a crucial factor in scalability and demand.

What is your perspective on the future growth trajectory of the data centre industry?

As utilization increases, demand will naturally follow. Not all data centres serve the same purpose; some are tailored for AI or cloud computing, while others cater to edge applications where latency is critical. As a partner, we must accommodate all these differing requirements. Our solutions are crafted to be adaptable and scalable to suit a variety of applications and environments—whether in the Middle East or South Africa, where climate and needs may differ, thus necessitating flexibility in our technology.

What are your plans for expansion in the Middle East?

Our presence here underscores our dedication to this region. We have established a robust local team in Dubai and have commenced manufacturing within the area, which sets us apart. These investments are indicative of our long-term commitment to the market and our confidence in its potential.

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