Saudi Arabia and Serbia Expand Partnership in Energy, Technology and Trade

Saudi Arabia’s construction boom and rapid investment in digital infrastructure are creating a new market for cooling technology. From buildings and megaprojects to data centers, demand is growing for systems that can operate efficiently and reliably in harsh climatic conditions.

The expansion of artificial intelligence and cloud computing is making data centers a major growth driver. 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’s air-conditioning market. He attributed the growth to expanding commercial and construction projects and the rise of data centers.

The pressure extends beyond the Kingdom. The International Energy Agency estimates that global electricity demand for building cooling has risen by about 50% since 2015, reaching roughly 2,900 terawatt-hours. Air-conditioner shipments worldwide reached about 200 million units in 2024. Data centers consumed around 415 TWh of electricity in 2024, and that figure could reach about 945 TWh by 2030. Cooling and environmental-control systems account for a significant share of their energy use.

The article also points to the environmental challenge. The UN Environment Programme estimates that global cooling demand could more than triple by 2050 under existing policies, increasing the importance of efficient equipment and technologies that use less energy.

Saudi Arabia sees the shift as an opportunity to build its domestic air-conditioning and cooling manufacturing base and meet more of its needs through local production. Shahin described a “growth boom” in the Kingdom’s data-center sector, driven by AI and cloud services. Several U.S. and European companies are developing data centers there, while AHRI is working with the Saudi Standards, Metrology and Quality Organization to adapt equipment standards to local temperatures, climate conditions and requirements. SASO has also asked AHRI to develop a new standard for evaporative cooling systems, locally known as “des”

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