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Middle East and Africa Green Data Center Market to Witness Investment of USD 1.5 Billion by 2027. More than 2GW Power Capacity to be Added in the Next 6 Years - Arizton

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News provided by

Arizton Advisory & Intelligence

14 Dec, 2022, 19:00 GMT

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CHICAGO, Dec. 14, 2022 /PRNewswire/ -- According to Arizton's latest research report, the Middle East and Africa green data center market will grow at a CAGR of 15% from 2021-2027. Major cloud service providers in the region expect to expand their presence during the forecast period, which enhances the demand for wholesale colocation services in the region. The Middle East and Africa green data center will witness investments from cloud service providers, such as Google, Amazon Web Services, Microsoft, Oracle, and Tencent. The UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Turkey, Israel, Qatar, South Africa, Kenya, and Nigeria witnessed commercial investments in deploying the 5G network.

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Middle East and Africa Green Data Center Market

Middle East and Africa Green Data Center Market Report Scope

Report Attributes

Details

Market Size (2027)

USD 1.5 Billion

CAGR (2021-2027)

15 %

Market Size - Power Capacity (2027)

289 MW

Base Year

2021

Forecast Year

2022-2027

Market Segments

Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Technique, and General Construction

Vendors Profiled in the Report

Prominent Data Center Investors: Amazon Web Services (AWS), Africa Data Centres, Equinix, Future Digital Data Systems (FDDS), Gulf Data Hub, Digital Realty, IXAfrica, Moro Hub, Meeza, Microsoft, Ooredoo, Paratus Group, Rack Centre, Raxio Data Centres, Turkcell, and Google

Renewable Energy Providers: MASE, Enerwhere, SolarWind Middle East, Yellow Door Energy, Masdar, Canadian Solar, SirajPower, ACWA Power, EDF Renewables, Dubai Electricity and Water Authority (DEWA), ENGIE, AMEA Power, TotalEnergies, ACCIONA Energia, and Scatec

Region Analysis

Middle East & Africa

Countries Covered

Saudi Arabia, the UAE, Other Middle Eastern Countries, South Africa, and Other African Countries

Market Dynamics

·  Renewable Energy Initiatives by Hyperscale & Cloud Operators

·  Renewable Energy Initiatives by Colocation Operators

·  Automation & Intelligent Monitoring Solutions

·  The Deployment of Modular Data Centers

Page Number

255

Customization Request

https://www.arizton.com/request-sample/3603

Click Here to Download the Free Sample Report

Key Highlights

  • The Middle East and Africa green data center market account for around 10% of the overall data center market in the region. The region, primarily Africa-based countries, has been slow in adopting efficiency in operations due to lower fund availability. However, investment is expected to grow with more funding flowing into the industry and global operators entering the market.
  • Colocation operators in the Middle East and Africa green data center market, such as Equinix, Moro Hub, Digital Realty, Gulf Data Hub, and Rack Centre, have been investing in efficient operations to achieve their sustainability goals.
  • Innovations in green operations are also being explored. For instance, Saudi Arabia is exploring free cooling using salt and sunlight, wherein this electricity-free cooling technique is being developed at King Abdullah University of Science and Technology (KAUST).
  • The increased hyperscale data centers in the region and the need to power the facilities with renewable energy will also be a significant revenue boost for renewable energy suppliers and energy companies.

Government Interest in Curbing Carbon Emissions Will Drive Market Development

o  Several regional governments are driving the requirement for sustainable data center operations to ensure a reduced carbon footprint. Several countries have announced plans to become carbon neutral between 2030 and 2050.

o  The Saudi Arabia government aims to achieve net zero emissions by 2060. It is conducting the Middle East Green Initiative (MGI) Summit and the Saudi Green Initiative (SGI) in November 2022 to chart actionable plans to combat climate change.

o  The UAE has planned to reduce its carbon emissions by 31% by 2030.

o  As per the National Determined Contribution (NDC) 2020, South Africa announced that its range of GHG emissions will be between 398 million tonnes of CO2 to 440 million tonnes of CO2 by 2030.

o   Governments are also partnering with renewable energy companies to develop renewable energy projects like wind and solar farms.

High Adoption of Innovative Power Technologies

Reduced space requirement and low OPEX, achieved through less-frequent battery replacement and maintenance, are significant factors driving lithium-ion batteries' use. UPS battery failure, especially with VRLA batteries, is another major reason for power outages in data centers, further prompting operators to migrate to lithium-ion UPS solutions.

It has a low TCO due to a longer lifecycle, low maintenance requirements, great energy efficiency, and endurance for higher temperatures. Reduced cooling system demand equals lower power use and CO2 emissions. Furthermore, lithium-ion batteries are significantly smaller and lighter, saving space and structural support in structures because of their increased power and energy density.

Prominent Data Center Investors

  • Amazon Web Services (AWS)
  • Africa Data Centres
  • Equinix
  • Future Digital Data Systems (FDDS)
  • Gulf Data Hub
  • Digital Realty
  • IXAfrica
  • Moro Hub
  • Meeza
  • Microsoft
  • Ooredoo
  • Paratus Group
  • Rack Centre
  • Raxio Data Centres
  • Turkcell
  • Google

Renewable Energy Providers

  • MASE
  • Enerwhere
  • SolarWind Middle East
  • Yellow Door Energy
  • Masdar
  • Canadian Solar
  • SirajPower
  • ACWA Power
  • EDF Renewables
  • Dubai Electricity and Water Authority (DEWA)
  • ENGIE
  • AMEA Power
  • TotalEnergies
  • ACCIONA Energia
  • Scatec

Market Segmentation

Infrastructure

  • Electrical
  • Mechanical
  • General Construction

Electrical Infrastructure 

  • UPS Systems
  • Generators
  • Other Electrical Infrastructures

Mechanical Infrastructure

  • Cooling Systems
    • CRAC & CRAH Units
    • Chiller Units
    • Cooling Towers & Dry Coolers
    • Other Cooling Units
  • Racks
  • Others Mechanical Infrastructure

Cooling Technique 

  • Air-based Cooling Technique
  • Liquid-based Cooling Technique

General Construction  

  • Core and Shell Development
  • MEP & Architectural Design Services
  • Physical Security
  • Fire Detection & Suppression
  • DCIM/BMS

Geography

  • Middle East
    • Saudi Arabia
    • The UAE
    • Other Middle Eastern Countries
  • Africa
    • South Africa
    • Other African Countries

Check Out Some of the Top-Selling Related Market Research Reports:

APAC Green Data Center Market -  The APAC green data center market was valued at USD 7 billion in 2021 and is expected to reach USD 13.1 billion by 2027, growing at a CAGR of 10.99% from 2022-2027. The region is one of the most dynamic global data center markets, with increased investments from colocation providers and hyperscale operators. The growing number of internet users, increased use of social media, elevated smartphone penetration, increased adoption of cloud services, and the need for enterprises to migrate from server room environments to data centers are the major drivers of the APAC green data center market.

Latin America Green Data Center Market -  The Latin America green data center market was valued at USD 455 million in 2021 and is expected to reach USD 825 million by 2027, growing at a CAGR of 10.43% from 2022 to 2027. A green data center is focused on the sustainability of the data center. The region's increasing digitalization, previously underserved status, the shift to the cloud, the growing popularity of IoT and big data, the emergence of 5G networks, the COVID-19 pandemic, and the demand for high-speed streaming of online entertainment content are some of the major factors driving the growth of the data center market in Latin America. With the tremendous growth in data center deployment, the green data center market is becoming a leading trend in data center development and operations.

Green Data Center Market -  The global green data center market is expected to reach USD 35.18 billion by 2027 from USD 35.58 in 2021, growing at a CAGR of 7.58% from 2022 to 2027. One of the prominent features of the market is that it has helped companies reduce energy costs leading to substantial cost savings. Governments globally are bringing new policies in favor of the green data center market to curb emissions and power consumption from the facilities. For instance, Pennsylvania announced the construction of one of the most significant government solar energy projects across the United States. The Pennsylvania PULSE project will involve the construction of seven large solar arrays at locations in Columbia, Juniata, Montour, Northumberland, Snyder, and York counties, contributing toward a significant development in the North America green data center market.

Middle East and Africa Data Center Market -  The Middle East and Africa data center market is expected to grow at a CAGR of over 10% from 2022 to 2027. It is projected to cross $12 billion by 2027 from $6 billion in 2021. The Middle East & Africa data center market has attracted significant investments in recent years, led by countries such as Israel, Oman, Qatar, Saudi Arabia, Turkey, the UAE, South Africa, Kenya, Egypt, and Nigeria. Middle East & African countries are working toward adopting digital transformation to attract foreign investments. Moreover, 5G network deployment fuels digital transformation, IoT, smart cities, and the fourth industrial revolution.

Table of Content

1 RESEARCH METHODOLOGY

2 RESEARCH OBJECTIVES

3 RESEARCH PROCESS

4 SCOPE & COVERAGE

4.1 MARKET DEFINITION

4.2 BASE YEAR

4.3 SCOPE OF THE STUDY

4.4 MARKET SEGMENTS

4.4.1 MARKET SEGMENT BY INFRASTRUCTURE

4.4.2 MARKET SEGMENTATION BY ELECTRICAL INFRASTRUCTURE

4.4.3 MARKET SEGMENTATION BY MECHANICAL INFRASTRUCTURE

4.4.4 MARKET SEGMENTATION BY GENERAL CONSTRUCTION

4.4.5 MARKET SEGMENTATION BY GEOGRAPHY

5 REPORT ASSUMPTIONS & CAVEATS

5.1 KEY CAVEATS

5.2 CURRENCY CONVERSION

5.3 MARKET DERIVATION

6 MARKET AT A GLANCE

7 PREMIUM INSIGHTS

8 INTRODUCTION

8.1 GREEN DATA CENTER METRICS

8.2 PUE

8.2.1 KEY

8.3 POLICY DRIVERS

8.3.1 THE PARIS AGREEMENT & SCIENCE BASED TARGETS INITIATIVE (SBTI)

8.3.2 CLIMATE NEUTRAL DATA CENTRE PACT

8.3.3 LONG DURATION ENERGY STORAGE (LDES) COUNCIL

8.3.4 RE100

8.3.5 CIRCULAR ECONOMY

8.4 ENERGY CERTIFICATIONS

8.5 IT INFRASTRUCTURE EFFICIENCY

8.5.1 E-WASTE DISPOSAL

9 MARKET OPPORTUNITIES & TRENDS

9.1 ESTABLISHMENT OF GREEN IT SOLUTIONS

9.1.1 SERVER VIRTUALIZATION

9.1.2 CONVERGED & HYPERCONVERGED INFRASTRUCTURE

9.1.3 ADVANCED RISC MACHINE (ARM) SERVERS

9.1.4 DATA STORAGE ADMINISTRATION

9.2 GOVERNMENTS' CARBON NEUTRALITY PLEDGE

9.3 ADOPTION OF INNOVATIVE POWER TECHNOLOGIES

9.3.1 ECODIESEL GENERATORS

9.3.2 NATURAL GAS GENERATORS

9.3.3 FUEL CELLS

9.3.4 HVO FUEL

9.3.5 NUCLEAR ENERGY GENERATION

9.3.6 MICROGRIDS

9.3.7 GRID INTERACTIVE UPS

9.4 ADOPTION OF ADVANCED UPS BATTERIES

9.5 GREEN CONSTRUCTION & URBAN MAINTENANCE TECHNIQUES

9.5.1 MODULAR DATA CENTER DEPLOYMENT

9.5.2 OTHER CONSTRUCTION TECHNIQUES

9.6 INNOVATIVE DATA CENTER COOLING TECHNOLOGIES

10 MARKET GROWTH ENABLERS

10.1 RENEWABLE ENERGY INITIATIVES BY HYPERSCALE & CLOUD OPERATORS

10.2 RENEWABLE ENERGY INITIATIVES BY COLOCATION OPERATORS

10.3 AUTOMATED & INTELLIGENT MONITORING SOLUTIONS

10.4 DEPLOYMENT OF MODULAR DATA CENTERS

11 MARKET RESTRAINTS

11.1 INCREASED CARBON EMISSIONS FROM DATA CENTERS

11.2 WATER CONSUMPTION BY DATA CENTERS

11.3 LACK OF SKILLED DATA CENTER PROFESSIONALS

11.4 LOCATION CONSTRAINTS FOR GREEN DATA CENTERS

12 MARKET LANDSCAPE

12.1 MARKET OVERVIEW

12.2 INVESTMENT: MARKET SIZE & FORECAST

12.3 POWER CAPACITY: MARKET SIZE & FORECAST

12.4 FIVE FORCES ANALYSIS

12.4.1 THREAT OF NEW ENTRANTS

12.4.2 BARGAINING POWER OF SUPPLIERS

12.4.3 BARGAINING POWER OF BUYERS

12.4.4 THREAT OF SUBSTITUTES

12.4.5 COMPETITIVE RIVALRY

13 INFRASTRUCTURE

13.1 MARKET SNAPSHOT & GROWTH ENGINE

13.2 MARKET OVERVIEW

13.3 ELECTRICAL INFRASTRUCTURE

13.3.1 MARKET OVERVIEW

13.3.2 MARKET SIZE & FORECAST

13.4 MECHANICAL INFRASTRUCTURE

13.4.1 MARKET OVERVIEW

13.4.2 MARKET SIZE & FORECAST

13.5 GENERAL CONSTRUCTION

13.5.1 MARKET OVERVIEW

13.5.2 MARKET SIZE & FORECAST

14 ELECTRICAL INFRASTRUCTURE

14.1 MARKET SNAPSHOT & GROWTH ENGINE

14.2 MARKET OVERVIEW

14.3 UPS SYSTEMS

14.3.1 MARKET OVERVIEW

14.3.2 MARKET SIZE AND FORECAST

14.4 GENERATORS

14.4.1 MARKET OVERVIEW

14.4.2 MARKET SIZE & FORECAST

14.5 OTHER ELECTRICAL INFRASTRUCTURE

14.5.1 MARKET OVERVIEW

14.5.2 MARKET SIZE & FORECAST

15 MECHANICAL INFRASTRUCTURE

15.1 MARKET SNAPSHOT & GROWTH ENGINE

15.2 MARKET OVERVIEW

15.3 COOLING SYSTEMS

15.3.1 MARKET OVERVIEW

15.3.2 MARKET SIZE & FORECAST

15.4 RACKS

15.4.1 MARKET OVERVIEW

15.4.2 MARKET SIZE & FORECAST

15.5 OTHER MECHANICAL INFRASTRUCTURE

15.5.1 MARKET OVERVIEW

15.5.2 MARKET SIZE & FORECAST

16 GENERAL CONSTRUCTION

16.1 MARKET SNAPSHOT & GROWTH ENGINE

16.2 MARKET OVERVIEW

16.3 CORE & SHELL DEVELOPMENT

16.3.1 MARKET OVERVIEW

16.3.2 MARKET SIZE & FORECAST

16.4 MEP & ARCHITECTURAL DESIGN SERVICES

16.4.1 MARKET OVERVIEW

16.4.2 MARKET SIZE & FORECAST

16.5 PHYSICAL SECURITY

16.5.1 MARKET OVERVIEW

16.5.2 MARKET SIZE & FORECAST

16.6 FIRE DETECTION & SUPPRESSION

16.6.1 MARKET OVERVIEW

16.6.2 MARKET SIZE & FORECAST

16.7 DCIM/BMS SOLUTIONS

16.7.1 MARKET OVERVIEW

16.7.2 MARKET SIZE & FORECAST

17 GEOGRAPHY

17.1 INVESTMENT: SNAPSHOT & GROWTH ENGINE

17.2 POWER CAPACITY: SNAPSHOT & GROWTH ENGINE

18 MIDDLE EAST

18.1 INVESTMENT: SNAPSHOT & GROWTH ENGINE

18.2 POWER CAPACITY: SNAPSHOT & GROWTH ENGINE

18.3 MARKET OVERVIEW

18.4 INVESTMENT: MARKET SIZE & FORECAST

18.5 POWER CAPACITY: MARKET SIZE & FORECAST

18.6 MARKET BY INFRASTRUCTURE

19 UAE

19.1 MARKET SNAPSHOT & GROWTH ENGINE

19.2 MARKET OVERVIEW

19.3 INVESTMENT: MARKET SIZE & FORECAST

19.4 POWER CAPACITY: MARKET SIZE & FORECAST

20 SAUDI ARABIA

20.1 MARKET SNAPSHOT & GROWTH ENGINE

20.2 MARKET OVERVIEW

20.3 INVESTMENT: MARKET SIZE & FORECAST

20.4 POWER CAPACITY: MARKET SIZE & FORECAST

21 OTHER MIDDLE EASTERN COUNTRIES

21.1 MARKET SNAPSHOT & GROWTH ENGINE

21.2 MARKET OVERVIEW

21.3 INVESTMENT: MARKET SIZE & FORECAST

21.4 POWER CAPACITY: MARKET SIZE & FORECAST

22 AFRICA

22.1 INVESTMENT: SNAPSHOT & GROWTH ENGINE

22.2 POWER CAPACITY: SNAPSHOT & GROWTH ENGINE

22.3 MARKET OVERVIEW

22.4 INVESTMENT: MARKET SIZE & FORECAST

22.5 POWER CAPACITY: MARKET SIZE & FORECAST

22.6 MARKET BY INFRASTRUCTURE

23 SOUTH AFRICA

23.1 MARKET SNAPSHOT & GROWTH ENGINE

23.2 MARKET OVERVIEW

23.3 INVESTMENT: MARKET SIZE & FORECAST

23.4 POWER CAPACITY: MARKET SIZE & FORECAST

24 OTHER AFRICAN COUNTRIES

24.1 MARKET SNAPSHOT & GROWTH ENGINE

24.2 MARKET OVERVIEW

24.3 INVESTMENT: MARKET SIZE & FORECAST

24.4 POWER CAPACITY: MARKET SIZE & FORECAST

25 PROMINENT DATA CENTER INVESTORS

25.1 AMAZON WEB SERVICES

25.1.1 BUSINESS OVERVIEW

25.1.2 SERVICE OFFERINGS

25.1.3 SUSTAINABILITY

25.2 AFRICA DATA CENTRES

25.3 EQUINIX

25.4 FUTURE DIGITAL DATA SYSTEMS (FDDS)

25.5 GULF DATA HUB

25.6 DIGITAL REALTY

25.7 IXAFRICA

25.8 MORO HUB

25.9 MEEZA

25.10 MICROSOFT

25.11 OOREDOO

25.12 PARATUS GROUP

25.13 RACK CENTRE

25.14 RAXIO DATA CENTRES

25.15 TURKCELL

25.16 GOOGLE

26 RENEWABLE ENERGY PROVIDERS

26.1 MASE

26.1.1 BUSINESS OVERVIEW

26.1.2 PRODUCT/SERVICE OFFERINGS

26.2 ENERWHERE

26.3 SOLARWIND MIDDLE EAST

26.4 YELLOW DOOR ENERGY

26.5 MASDAR

26.6 CANADIAN SOLAR

26.7 SIRAJPOWER

26.8 ACWA POWER

26.9 EDF RENEWABLES

26.10 DUBAI ELECTRICITY AND WATER AUTHORITY

26.11 ENGIE

26.12 AMEA POWER

26.13 TOTALENERGIES

26.14 ACCIONA ENERGIA

26.15 SCATEC

27 REPORT SUMMARY

27.1 KEY TAKEAWAYS

28 QUANTITATIVE SUMMARY

28.1 GREEN DATA CENTER MARKET

28.1.1 OVERALL MARKET: MARKET SIZE & FORECAST

28.1.2 INFRASTRUCTURE: MARKET SIZE & FORECAST

28.2 MARKET BY INFRASTRUCTURE

28.2.1 ELECTRICAL INFRASTRUCTURE: MARKET SIZE & FORECAST

28.2.2 MECHANICAL INFRASTRUCTURE: MARKET SIZE & FORECAST

28.2.3 GENERAL CONSTRUCTION: MARKET SIZE & FORECAST

28.3 MARKET BY GEOGRAPHY

28.3.1 INVESTMENT: MARKET SIZE & FORECAST

28.3.2 POWER CAPACITY: MARKET SIZE & FORECAST

28.4 MIDDLE EAST

28.4.1 OVERALL MARKET

28.4.2 INFRASTRUCTURE: MARKET SIZE & FORECAST

28.5 UAE

28.5.1 OVERALL MARKET

28.6 SAUDI ARABIA

28.6.1 OVERALL MARKET

28.7 OTHER MIDDLE EASTERN COUNTRIES

28.7.1 OVERALL MARKET

28.8 AFRICA

28.8.1 OVERALL MARKET

28.8.2 INFRASTRUCTURE: MARKET SIZE & FORECAST

28.9 SOUTH AFRICA

28.9.1 OVERALL MARKET

28.10 OTHER AFRICAN COUNTRIES

28.10.1 OVERALL MARKET

29 APPENDIX

29.1 ABBREVIATIONS

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