The research study covers the present scenario and growth prospects of the data center cooling market in MEA for 2016-2020. To calculate the market size, the report considers revenue generated from the investments made in new data centers and the renovation of existing ones.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the data center cooling market in MEA:
- Increase in construction of new data centers
- Growing construction of green data centers
- Increased heat density in data centers
- Need to reduce OPEX in data centers
Increase in construction of new data centers
Cloud computing and big data analytics have influenced the demand for data centers in MEA. Public cloud is the largest growing market in the region. The cloud IP traffic in the region is expected to experience a CAGR of around 40% over the forecast period.
The construction of data centers by global organizations is growing in the Middle East. In 2015, Alibaba partnered with Meraas, a Dubai holding group, to offer its cloud services in the region. In addition, in 2016, Oracle is planning to open a data center in Abu Dhabi due to increased cloud service demand in the region.
In 2016, Airtel opened USD 10 million data center in Sierra Leone. Also, Ecuador's National Telecommunications Corporation (CNT) constructed a USD 21 million data center in Ecuador in the same year.
Many local organizations, governments, and banks are involved in the construction of data centers in the Middle East. This scenario is likely to continue throughout the forecast period owing to investments by telecommunications service providers and global CSPs.
Growing construction of green data centers
The growing demand for data centers in MEA has paved the way for the development of solutions that enable the operation of green facilities. Power usage effectiveness (PUE) and Leadership in Energy and Environmental Design (LEED) certification play a vital role in building and operating green data centers.
Advanced infrastructure offers high efficiency with low power consumption and environmental effects. Innovations in cooling systems such as free and evaporative cooling solutions help in operating green data center infrastructure. Green data centers enable reduction of heat and noise emissions. There are also cooling systems that are designed to function with no moving parts and less noise emission.
Rakesh Kumar Panda, a lead analyst at Technavio for research on data center, says, “Green data center solutions are gaining traction in the market as they can reduce the emission of greenhouse gasses. Green data centers are equipped with components that can inhibit the transfer of dust particles, increasing the efficiency of the cooling system.”
Increased heat density in data centers
Rapid advances in technology related to data center equipment and the increased implementation of technologies have led to an increase in heat density. Currently, there are many data centers worldwide operating high-performance computing infrastructure to improve business operations, where the rack-level heat density is around 10 kW.
At present, the adoption of high-performance computing infrastructure in data centers is low in MEA. However, growth in cloud, Internet of Things (IoT), and big data analytics will prompt enterprises to invest in data centers and adopt high-performance infrastructure with at least 20% spending with respect to the overall infrastructure spending. “This will lead to the operation of high-performance computing infrastructure for at least 20 racks from the total number of racks installed in the data center,” adds Rakesh.
Need to reduce OPEX in data centers
Most data center operators in MEA are aware of the high OPEX involved in operating data centers. In this region, most upcoming data center facilities are expected to be designed based on Tier 3 and Tier 4 standards. However, these data centers will require energy efficient infrastructure to reduce carbon emissions and power consumption.
Power consumption is the major OPEX of any data center operator. Enterprises in MEA planning to establish data centers will likely adopt energy efficient cooling techniques like free cooling to minimize OPEX.
Browse Related Reports:
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- Data Center Cooling Market in Southeast Asia 2016-2020
- Global Data Center Precision Air Conditioning Market 2016-2020
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