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🇸🇦 Saudi Arabia /Technology

Data Centers Open New Path for Saudi Cooling Industry Localization

From Asharq Al-Awsat · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

In-depth Named sources Context piece
  • Saudi Arabia’s construction and digital-infrastructure boom is increasing demand for efficient, reliable cooling systems that can operate in harsh climatic conditions.
  • Data-center electricity consumption worldwide reached about 415 TWh in 2024 and could rise to about 945 TWh by 2030, increasing demand for cooling technologies.
  • The trend gives Saudi Arabia an opportunity to expand domestic cooling-equipment production as it seeks to increase local content.

Saudi Arabia’s cooling industry is finding a new growth engine in data centers, as artificial intelligence and cloud computing accelerate investment in digital infrastructure. The facilities require cooling systems that can deliver high efficiency and reliability in the Kingdom’s harsh climate.

The expansion adds to demand already generated by buildings and megaprojects. Nabil Shahin, managing director of the Middle East and North Africa office of the U.S.-based Air-Conditioning, Heating, and Refrigeration Institute, told Asharq Al-Awsat that Saudi Arabia accounts for more than half of the Gulf air-conditioning market. He linked the growth to expanding commercial and construction projects, as well as the data-center boom.

The pressure is also global. The International Energy Agency estimates that electricity demand for building cooling has risen by about 50% since 2015, reaching around 2,900 terawatt-hours. Air-conditioner shipments reached about 200 million units in 2024. Global data-center electricity use stood at approximately 415 TWh last year and is projected to reach about 945 TWh by 2030, with cooling and environmental-control systems representing a significant share.

Shahin described the Kingdom as experiencing a “growth boom” in data centers, driven by AI and cloud-computing demand. Several U.S. and European companies are developing projects there. In response, AHRI is working with the Saudi Standards, Metrology and Quality Organization to adapt equipment standards to Saudi temperatures, climate conditions, and local requirements.

SASO has also asked AHRI to develop a new standard for evaporative cooling systems, known locally as “des.” The push comes as governments and industry face mounting pressure to improve air-conditioning efficiency and limit its environmental impact. The United Nations Environment Programme estimates that global cooling demand could more than triple by 2050 under existing policies, strengthening the case for less energy-intensive technologies and domestic manufacturing.

growth boom

· Nabil ShahinThe AHRI executive described Saudi Arabia’s expanding data-center sector, driven by AI and cloud-computing demand.
About this summary

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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