South Africa Data Center Cooling Market

South Africa Data Center Cooling Market Analysis

The South Africa Data Center Cooling Market size is estimated at USD 0.06 billion in 2025, and is expected to reach USD 0.12 billion by 2031, at a CAGR of 13.43% during the forecast period (2025-2031).

• The demand for data centers is driven by the increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players.
• Under Construction IT Load Capacity: The market's IT load capacity is expected to surpass 524 MW by 2030.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to exceed 1.8 million sq. ft by 2030.
• Planned Racks: The country's total number of racks to be installed is expected to reach 94K units by 2030. Johannesburg is expected to house the maximum number of racks by 2030.
• Planned Submarine Cables: There are several submarine cables under construction. One such cable, 2Africa, is estimated to start service in 2024. It stretches over 45,000 kilometers and has landing points in Cape Town, Mtunzini, and Port Elizabeth.
• New data centers across the country are focusing on implementing state-of-the-art monitoring systems to mitigate the risks associated with extreme weather events. Many use the latest, more energy-efficient cooling technologies, such as redundant cooling systems, smart monitoring technologies, and backup power generators, to ensure consistency of temperature in the event of power interruptions. Direct liquid cooling uses a higher thermal transfer of water to a more efficient cooling device.

South Africa Data Center Cooling Market Trends

The IT and Telecom Segment is Expected to Hold a Significant Market Share

• South Africa's strategic position and supportive business environment make it an advantageous location for data center investments. The country's data center cooling market is fueled by the growth of digital technologies like AI and big data, the increasing adoption of cloud services, and the need for huge data storage and processing capabilities. This is evident in the investments made by major cloud providers such as AWS, Google, Microsoft, Huawei, and Oracle. For example, in April 2023, AWS announced plans to invest USD 1.66 billion in expanding its cloud infrastructure in South Africa by 2029.
• Rapid technological advancements and the adoption of new technologies (such as AI and IoT) require advanced data center solutions in the country. Businesses in South Africa are adopting GenAI technology, enabling quicker digital transformation and increased reliability. In 2024, a survey conducted by Worldwide Worx, in collaboration with Dell Technologies and Intel, polled 100 IT decision-makers from major enterprises in South Africa. The findings revealed that 45% of respondents who were not utilizing GenAI intended to adopt it, signaling a receptive market to this emerging technology. Another factor that supports the growth of the market is the development of robust ICT infrastructure.
• The segment may continue its dominance due to the growing 5G connections. The 5G mobile data speed is expected to grow significantly and reach 407.59 Mbps by 2029, suggesting increasing data traffic and rising demand for data center servers in the segment.
• In South Africa, the telecom industry is advocating for digital content and service providers to contribute to the funding of network infrastructure rollouts, citing their significant role in generating internet traffic. Nomvuyiso Batyi, CEO of the Association of Comms and Technology (ACT), emphasized that revenues from over-the-top (OTT) platforms and the success of the OTT model hinge on access to high-quality, reliable, and efficient network infrastructure. Mobile operators, including Vodacom Group and MTN Group, invest approximately 41 billion rand (USD 2 billion) each year to expand their networks. Such instances in the market are expected to create more need for data centers, boosting the demand for data center cooling infrastructure in the coming years.

Liquid Cooling is Expected to Hold a Significant Share

• Liquid cooling offers many benefits in data centers, making it an attractive option for cooling computing environments with high performance. It is more energy-efficient than conventional air conditioning. It reduces the need for overcooling and improves the energy efficiency of data centers by providing precise temperature control.
• In South Africa, in order to serve the growing requirement of data storage in the region, the key data center operators are coming up with huge IT load capacities. This results in generating more heat from the servers, which require cooling solutions that provide efficiency and capacity benefits.
• In January 2023, ADC commenced construction on new facilities in Nairobi, Kenya, and Cape Town, South Africa. This initiative came from earlier expansions in South Africa and Ghana as the company advanced its plans for data center constructions in Abidjan, Lagos, Cairo, and Casablanca. Additionally, in April 2023, Cassava Technologies, the parent company of ADC, committed a substantial investment of USD 249 million in South Africa, channeling the funds through its subsidiaries: Liquid Intelligent Technologies, Africa Data Centres, and Distributed Power Africa.
• Data center operators are breaking new technological ground with technology partners such as Rittal. In April 2024, Rittal introduced a new cooling solution (direct-to-chip) that delivers over 1 megawatt of cooling output, paving the way for AI. As per a study conducted by Google, the interest in artificial intelligence (AI) in South Africa increased by 370% in 2023; it increased by 650% over the last five years. The demand for computing power is increasing, necessitating a new level of scaling, cooling, power distribution, and energy efficiency.
• As data centers become increasingly essential for businesses, the need for efficient cooling solutions becomes more pressing. The excessive heat generated by data centers can result in system downtime, equipment damage, and increased energy consumption. To address this issue, Engineered Fluids, which specializes in single-phase immersion cooling, launched its innovative immersion cooling solution in South Africa in April 2023. The coolant is non-conductive, non-corrosive, and biodegradable, and the servers are designed to be submerged in the coolant. Companies such as Vertiv, Rittal, Gigabyte, and others offer immersion cooling systems to directly address the rising demand for energy-efficient cooling solutions in the South African market.

South Africa Data Center Cooling Industry Overview

The South African data center cooling market is moderately consolidated. The benefits offered by the technology and support from the government imposing efficiency regulations on data centers are expected to help the market grow. Some of the major market players include Stulz GmbH, Vertiv Group Corp., Schneider Electric SE, Daikin Industries Ltd, and Mitsubishi Electric Corporation.

November 2023: Vertiv, the provider of critical digital infrastructure and continuity solutions, announced a collaboration with Intel to provide a liquid cooling solution in order to support the revolutionary new Intel Gaudi3 AI accelerator, scheduled to launch in 2024. The Intel Gaudi3 AI accelerator will allow both liquid and air-cooled servers to be operated by the VertivTM-pumped two-stage cooling infrastructure.

October 2023: Mitsubishi Heavy Industries Ltd introduced a new 40 kVA-class 12ft container-type data center with an immersion/air-cooled hybrid cooling system capable of simultaneously housing servers utilizing three types of cooling methods: air cooling (8 kVA), immersion cooling (25 kVA), and water cooling (8 kVA).

South Africa Data Center Cooling Market Leaders

South Africa Data Center Cooling Market News

• May 2024: Stulz unveiled its latest innovation, the CyberCool Coolant Management and Distribution Unit (CDU), specifically engineered to optimize heat exchange efficiency in liquid cooling solutions. The product line comprises four models, available in two distinct sizes. These units boast an impressive heat exchange capacity, ranging from 345 kW to 1,380 kW. Stulz set the rated water supply temperature for the facility water system at 32 °C (89.6 °F), with the liquid supply temperature for the technology cooling system pegged at 36 °C (96.8 °F)
• May 2024: Rittal, in collaboration with multiple hyperscale data center operators, developed a modular cooling system. This solution boasts a cooling capacity exceeding 1 MW, achieved through direct water cooling. It is specifically tailored to cater to the high-power densities of AI applications.