Middle East Data Center Market Size by Investment to Reach USD 6.68 Billion by 2026 - Arizton

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Arizton Advisory & Intelligence

22 Dec, 2021, 21:12 GMT

-  Data center operators work closely with construction contractors, installation & commissioning service providers, and architectural & engineering firms from the start of the project to the completion and aftermarket services

-  The Middle East is witnessing rapid growth in big data and analytics markets over the last two years. The trend of adopting IoT-based devices in industries such as manufacturing, logistics, healthcare, lifestyle, and others is increasing at a rapid rate. In the Middle East, big data is increasingly being used in sectors such as online sourcing, online payments, and internet banking

CHICAGO, Dec. 22, 2021 /PRNewswire/ -- The Middle East data center market is expected to grow at a CAGR of over 9% during the period 2022−2027.

Key Highlights Offered in the Report:  

  • The Middle East data center market has witnessed investments from telecommunication service providers as well as global colocation operators and cloud service providers. In 2021, some of the major investors in the market included Group 42, Equinix, AWS, Gulf Data Hub, and Ooredoo, among others.
  • UAE accounted for around 40% of the overall investment received in the Middle East in 2021, followed by Saudi Arabia, and Turkey. Increased cloud adoption, smart city development, and 5G network deployments are driving the growth in the UAE market.
  • In 2021, The Saudi Ministry of Communications and Information Technology (MCIT) launched an USD 18 billion plan in collaboration with local players to build a network of hyperscale data centers across the Kingdom of Saudi Arabia, which will drive investment in the country.
  • Several mergers and acquisitions, as well as joint ventures have been witnessed in the Middle East market over the current year. For instance, in November 2021, Group 42, along with Mubadala, announced the acquisition of Injazat and Khazna.
  • Several smart city initiatives announced in recent times will also drive data center investments in coming years. In Dubai, projects such as The Sustainable City, Dubai South project, Zayed Smart City Project, and Desert Rose City are under construction, and will run on renewable energy.

Key Offerings:

  • Market Size & Forecast by Investment| 2021−2027
  • Market Size & Forecast by Area | 2021−2027
  • Market Size & Forecast by Power Capacity | 2021−2027
  • Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
  • Market Segmentation – A detailed analysis by infrastructure, IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, and geography
  • Competitive Landscape – 15 key data center critical (IT) infrastructure providers, 19 key data center support infrastructure providers, 30 prominent construction contractors, 14 key data center investors, and 1 new entrants

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Middle East Data Center Market – Segmentation

  • In the IT infrastructure segment, major revenue is generated by servers as the growth in data generation is fueling demand for faster processing and efficient servers. This is followed by revenue from storage due to the growing adoption of flash storage among data centers and revenue of network infrastructure.
  • The deployment of data center facilities in rural areas will also increase the dependency on the electricity grid, which is unstable in the region. Therefore, the increasing power capacity will propel the demand for data center power infrastructure throughout the forecast period.
  • Data centers are investing more in power infrastructure with a minimum of N+1 redundancy. In 2020, UPS systems accounted for a market share of around 30% of the total electrical infrastructure in data centers.

Middle East Data Center Market by Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General infrastructure

Middle East Data Center Market by IT infrastructure

  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure

Middle East Data Center Market by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Middle East Data Center Market by Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Middle East Data Center Market by Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units

Middle East Data Center Market by Cooling Technique

  • Air-Based Cooling Technique
  • Liquid-Based Cooling Technique

Middle East Data Center Market by General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM/BMS

Middle East Data Center Market by Tier Standard

  • Tier I & II
  • Tier III
  • Tier IV

Middle East Data Center Market – Dynamics

The rising adoption of cloud-based services is leading to the growth of retail and wholesale colocation services in the region. The market is witnessing an increase in the demand for colocation spaces across existing and upcoming facilities. All countries in the Middle East will see more and more installations of inland and submarine network connectivity, leading to higher data center development driven by efforts from government agencies, telecommunication service providers, and utility providers. Partnerships with local service providers and resellers along with modular data center solution providers will enhance revenues for vendors. Moreover, HPE is the leading vendor in the server market, where the average selling price of server infrastructure has increased along with unit shipments. Server demand has grown in the past year through the higher deployment of infrastructure for big data analytics workloads.

Key Drivers and Trends fueling Market Growth:

  • 5G Deployments Fueling Edge Data Center Deployment
  • Smart City Initiatives Drives Data Center Investments
  • Deployment of Submarine Cables and Inland Cables Impact Data Center Investments
  • Increase in Adoption of Renewable Energy Sources
  • Adoption of Advanced IT Infrastructure in Data Centers

Middle East Data Center Market – Geography

The development of Submarine cable in the UAE is expected to boost connectivity in the country. Alcatel Submarine Networks (ASN) has invested in a submarine cable Africa-1 with a length of around 10,000 Km. The cable is expected to be functional in Q4 2023 and will connect the UAE with Algeria, Saudi Arabia, Pakistan, France, Italy, and Egypt. Some telecom providers such as Etisalat and Emirates Integrated Telecommunications Company (EITC) also invested in data centers in the region. Equinix is one of the prominent investors in the colocation data center space in Dubai. Moreover, In February 2021, Khazna announced that it will add more power capacity in the region and take its total capacity to 200 MW by 2023. The country will further expand its power capacity in the coming years, with data center operators such as du opening more facilities in the region.

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Middle East Data Center Market by Geography

  • UAE
  • Saudi Arabia
  • Israel
  • Turkey
  • Oman
  • Qatar
  • Bahrain
  • Kuwait
  • Other Middle Eastern Countries
  • Jordan

Vendors:

IT Infrastructure Providers

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Fujitsu
  • Hewlett Packard Enterprise
  • Hitachi Vantara
  • Huawei Technologies
  • IBM
  • Inspur
  • Juniper Networks
  • Lenovo
  • NetApp
  • Oracle

Prominent Support Infrastructure Providers

  • ABB
  • Airedale International Air Conditioning
  • Alfa Laval
  • Canovate
  • Caterpillar
  • Cummins
  • Delta Electronics
  • EAE Group
  • Eaton
  • HITEC Power Protection
  • Johnson Controls designs
  • Legrand
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Shenzhen Envicool Technology
  • Siemens
  • STULZ
  • Vertiv Group

Prominent Construction Contractors

  • AECOM
  • Aldar Properties
  • Anel Group
  • Arup
  • Ashi & Bushnag
  • Atkins
  • Dar Group
  • DC PRO Engineering
  • Deerns
  • Edarat Group
  • EGEC
  • ENMAR Engineering
  • Harinsa Qatar
  • HATCO
  • HHM Building Contracting
  • Hill International
  • ICS Nett
  • INT'LTEC Group
  • ISG
  • Laing O'Rourke
  • Linesight
  • M+W Group
  • Mace
  • Mercury Engineering
  • McLAREN Construction Group
  • Prota Engineering
  • Qatar Site & Power
  • Red Engineering
  • RW Armstrong
  • Turner & Townsend

Prominent Data Center Investors

  • Amazon Web Services (AWS)
  • Bynet Data Communications
  • EdgeConneX
  • Equinix
  • Etisalat Group
  • Future Digital Data Systems (FDDS)
  • Group 42
  • Gulf Data Hub
  • Moro Hub
  • MEEZA
  • Microsoft
  • Ooredoo
  • Turkcell
  • Zain

New Entrants

  • Infinity

Explore our data center knowledge base profile to know more about the industry.

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