{
  "id": 5241415,
  "title": "As the world grows hotter, a 'cooling economy' emerges",
  "url": "https://urgent.news/2026/09/03/as-the-world-grows-hotter-a-cooling-economy-emerges",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-03T03:52:13.000Z",
  "source": {
    "name": "Al Majalla English",
    "slug": "al-majalla-english",
    "url": "https://en.majalla.com/node/332848/business-economy/world-grows-hotter-cooling-economy-emerges"
  },
  "original_language": "en",
  "account": "As the world's temperatures rise, a cooling economy is emerging, with air conditioning becoming an essential part of daily life. In an Arab city, the demand for cool air is evident, transforming from a luxury to a necessity alongside water and electricity. Behind the cool air is an investment story that goes beyond the individual air conditioner unit.\n\nMillions of air conditioners being switched on simultaneously place a significant load on power stations, transmission lines, and transformers. While AI data centers have garnered attention for their energy consumption, cooling is growing in scope and reach, impacting a broader geographical and social base. This includes households in developing countries, pharmaceutical warehouses, and food transportation.\n\nThe cooling economy starts with power stations and extends to building design, solar power, batteries, thermal storage, district cooling networks, food and pharmaceutical cold chains, smart control systems, and the metals, refrigerants, and technical skills needed. The International Energy Agency reports that 3.5 billion people live in regions with high temperatures, but only 15% own air conditioners. Income is a crucial factor in the adoption of air conditioning, as households with higher purchasing power quickly prioritize it over other luxuries.\n\nThe International Energy Agency (IEA) projects that emerging and developing economies will account for more than 80% of the projected increase in electricity demand for cooling by 2050. In South-East Asia, the number of air conditioners could grow ninefold between 2020 and 2040, while in Indonesia, ownership could rise from 14% in 2023 to 85% by mid-century. In India, air-conditioner ownership is expected to increase tenfold by 2050, and peak demand in buildings could rise sixfold.\n\nThe impact of cooling extends beyond the purchase price, as each appliance creates years of electricity demand and requires a grid capable of handling the load, maintenance technicians, spare parts, and refrigerants. A cheap air conditioner may prove costly in the long run if it consumes excessive electricity. Despite the growing demand, only 1 billion people in 77 countries face high risks due to the lack of essential cooling, which could increase to 1.05 billion by 2030. The market for cooling remains largely untapped, with a vast population of 2.83 billion people who have the income to consider buying cooling appliances but lack affordable options, reliable electricity, or financing.",
  "summary": "As the world grows hotter, a 'cooling economy' emerges newspress_en Thu, 09/03/2026 - 04:52 Business & Economy On a summer afternoon in an Arab city, no economic report is needed to understand the meaning of demand for cooling. A few minutes outdoors, followed by a single step into an air-conditioned lobby, are enough to show that cool air is no longer a luxury in this part of the world. It has…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}