Data Centers Open New Avenue for Localizing Saudi Cooling Industry

english.aawsat.com Sep 7, 2026

Data Centers Open New Avenue for Localizing Saudi Cooling Industry

Curated by Shubham · TechCapsules · Sep 7, 2026

AI-summarised brief · reviewed before publication

Rapid expansion in Saudi Arabia’s construction sector and digital infrastructure is driving significant demand for advanced cooling solutions. Data centers, fueled by artificial intelligence and cloud computing growth, have emerged as a primary catalyst for this industry shift. Globally, cooling electricity demand has risen 50% since 2015, with data center consumption projected to nearly double by 2030. This surge intensifies pressure on power grids and underscores the urgent need for energy-efficient technologies to mitigate environmental impact. In response, Saudi Arabia aims to localize its cooling manufacturing base to meet domestic needs and increase local content. The US-based Air-Conditioning, Heating, and Refrigeration Institute is collaborating with the Saudi Standards, Metrology and Quality Organization to adapt equipment standards for the Kingdom’s harsh climatic conditions. Nabil Shahin, AHRI’s regional managing director, noted that Saudi Arabia controls over half of the Gulf’s air-conditioning market. This partnership seeks to develop specific standards for evaporative cooling systems, ensuring equipment reliability and efficiency in extreme temperatures while supporting the Kingdom’s broader industrial localization goals.

💡 Why It Matters

· Standardizing evaporative cooling technology for extreme climates allows Saudi Arabia to secure supply chain resilience while reducing reliance on imported equipment.
· This strategic localization directly supports the Kingdom’s economic diversification goals by transforming a critical infrastructure necessity into a domestic manufacturing opportunity.

Read full article on english.aawsat.com

AI Data Centers Are Swallowing Farmland — and Rural America Is Fighting…

Rural land prices near proposed AI data center sites surged 79% in 2026, with developers offering farmers up to ten times market value for their property. This aggressive acquisition strategy has triggered a coordinated national backlash against the rapid expansion of tech infrastructure into agricultural communities. On July 18, 2026, 142 protests occurred across 42 US states, marking the largest single-day demonstration against data center construction in history. Concerns center on resource depletion, as hyperscale facilities can consume five million gallons of water daily, equivalent to a city of 50,000 people. In response to community resistance, New York signed an executive order restricting new facilities, while Georgia, Pennsylvania, and other states enacted moratoriums. Consequently, 75 data center projects valued at over $130 billion were delayed or canceled in the first quarter of 2026. The conflict highlights a growing tension between Big Tech’s need for cheap land, power, and water, and rural communities’ desire to protect local resources and control over their development.

💡 The unprecedented scale of community resistance has forced a strategic pivot in how tech giants approach infrastructure expansion. With billions in projects stalled, developers can no longer rely on financial incentives to bypass local opposition, signaling a new era where regulatory and social hurdles dictate the geographic footprint of the AI industry.

nextplatform.com · Sep 8

Dell Says AI Will Drive 75 Percent Of Datacenter Demand By 2030

Dell Technologies projects that artificial intelligence will account for 75 percent of datacenter demand by 2030, driven by a surge in enterprise adoption and necessary infrastructure modernization. During its fiscal 2027 second-quarter earnings call, Chief Operating Officer Jeff Clarke revealed that 6,500 unique organizations have deployed AI systems using Dell PowerEdge servers. This growth is fueled by customers replacing aging hardware, with over 1.2 million servers in the installed base dating back to the 2017 PowerEdge 14G generation or earlier. Consolidating these legacy systems into newer 17G and upcoming 18G models allows for significant workload density improvements. Consequently, Dell reported $41.11 billion in product sales, a 71.8 percent year-over-year increase. Combined revenues reached $46.97 billion, while operating income tripled to $5.36 billion. Net income rose 3.55 times to $4.13 billion, marking an 8.8 percent profit margin. This financial performance reflects Dell’s successful optimization of supply chains and manufacturing operations, enabling it to secure larger GPU allocations and capitalize on the transition from traditional server upgrades to AI-driven infrastructure investments.

💡 Dell’s shift to an 8.8 percent net margin demonstrates that legacy hardware vendors can achieve software-like profitability by mastering supply chain logistics during component shortages. This financial resilience allows traditional OEMs to compete directly with hyperscalers for critical GPU resources, fundamentally altering the competitive landscape for enterprise AI infrastructure.

openpr.com · Sep 7

AI Data Center Liquid Cooling Market to Reach US$ 23.23 billion by…

The AI data‑center liquid‑cooling market, valued at $3.39 billion in 2025, is projected to reach $23.23 billion by 2035, expanding at a 21.21% CAGR. The surge reflects a shift by hyperscale operators, cloud providers and AI infrastructure firms toward liquid‑cooling to manage the power density of GPUs and accelerators. Conventional air‑cooling cannot meet the thermal load of rapidly growing AI workloads, prompting investments in high‑density, energy‑efficient solutions. Recent moves include Supermicro’s rear‑door heat exchangers supporting 10‑120 kW racks, Vertiv’s integrated power‑liquid‑cooling system for the Naval Postgraduate School’s NVIDIA DGX GB300, and NVIDIA’s Rubin platform operating at 45 °C coolant. In Japan, NTT DATA and Daikin are testing AI‑driven cooling optimization, while Nidec unveiled a 300 kW in‑rack CDU prototype, positioning the industry for sustainable growth globally.

💡 Liquid cooling is the linchpin that lets hyperscale AI farms pack more compute into smaller footprints, unlocking the performance needed for next‑gen models.

cio.com · Sep 7

IT infrastructure shortages are real and lasting. Here’s how to cope

Lead times for enterprise IT infrastructure have stretched to nine‑18 months, while component costs have surged 35%‑50% for PCs and over 125% for some servers, driven primarily by a shortage of memory. Gartner analyst Jon Forest notes memory price hikes of 50%‑200% have pushed PC prices up 35%‑45% and are inflating network switch costs as well. Hyperscalers’ aggressive acquisition of memory capacity is cascading down to servers, storage, and networking gear, creating a durable supply‑chain strain that eclipses earlier disruptions such as chip‑fab fires or the COVID‑19 pandemic. Analysts predict memory expenses will account for up to 25% of network hardware budgets by the end of 2027, with overall enterprise network equipment prices expected to rise over 20% in 2026 and continue climbing into 2027. Companies are urged to optimize existing assets, explore alternative sourcing, and coordinate closely with vendors and finance teams.

💡 The prolonged AI‑driven memory crunch forces firms to redesign procurement strategies, potentially reshaping capital allocation and technology roadmaps across the sector.

electronicsmedia.info · Sep 7

NEPCON ASIA 2026 Shenzhen to Showcase 200+ New Product Launches and Next-Generation…

NEPCON ASIA 2026 will convene at the Shenzhen World Exhibition & Convention Center from October 27 to 29, serving as a premier hub for electronics manufacturing and smart production solutions. Spanning 100,000 square meters, the event features global industry leaders such as Panasonic, ASMPT, and Fuji alongside prominent Chinese brands. The exhibition highlights over 200 new product launches driven by AI innovation, advanced packaging, and supply-chain shifts. Key attractions include an Optical Module Manufacturing Process Demo Zone focusing on high-speed 800G to 3.2T technologies and a dedicated Computing Power Expo covering data centers, AI chips, and server systems. The event addresses critical industrial segments including PCB assembly, semiconductor testing, automotive electronics, and embodied intelligence. It provides a comprehensive sourcing gateway for equipment and technologies essential for optimizing production lines in high-growth verticals like consumer electronics, AI hardware, and new-energy equipment, reflecting Asia’s dominant role in global electronics output.

💡 The dedicated optical module demo zone directly addresses the urgent infrastructure demands of next-generation AI computing. By showcasing complete mass-production workflows for high-speed interconnects, the event bridges the gap between theoretical chip performance and scalable manufacturing reality.

newscase.com · Sep 7

Nokia’s Oulu AI Campus Plan Adds Physical Substance to a Stock Riding…

Nokia has signed a preliminary agreement with Nscale DC Holdings Finland Oy to acquire a plot in Oulu’s Toppila district for approximately €5 million. The land, located on Tervahovintie, is intended for the development of a new AI data center campus. Oulu’s city development committee is scheduled to vote on the acquisition next Tuesday. This strategic move anchors the Finnish telecommunications equipment maker’s expansion in artificial intelligence infrastructure within its home country. The project represents a tangible commitment to physical assets, complementing the company’s broader technological initiatives. By securing this site, Nokia aims to bolster its capabilities in AI and quantum computing sectors. The deal underscores a shift toward establishing dedicated facilities for high-performance computing needs. Local authorities will finalize the approval process shortly, potentially accelerating construction timelines. This investment aligns with Nokia’s efforts to diversify its portfolio beyond traditional telecommunications hardware. The campus will serve as a hub for advanced research and development activities. Stakeholders view this acquisition as a significant step in Nokia’s long-term growth strategy. The company continues to leverage its heritage in Oulu while adapting to modern digital demands. This development adds concrete value to the stock, which has benefited from multiple market tailwinds. Investors are closely monitoring the progress of this infrastructure project. The initiative reflects a broader trend of tech firms investing in localized data centers. Nokia’s focus on Oulu highlights the region’s growing importance in the European tech landscape. The preliminary agreement sets the stage for future operational expansions.

💡 Nokia is pivoting from pure software and hardware sales to owning critical AI infrastructure, creating a new revenue stream independent of telecom cycle fluctuations. This physical asset base provides tangible valuation support for a stock previously driven by speculative tech trends.