Middle East to Become an Important Location for Data Center Investments - Arizton

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Arizton Advisory & Intelligence

06 Oct, 2021, 14:00 GMT

CHICAGO, Oct. 6, 2021 /PRNewswire/ -- The data center market in the Middle East and African region is growing YoY due to the increasing number of internet users, big data, and IoT. The production of renewable energy in the Middle East is picking up and is expected to grow in the coming years. COVID-19 has been a strong market enabler for several digitization initiatives in the region. The government has given opportunities to vendors to digitally transform their countries and have thereby developed long-term goals. The government in various regions are using cloud-based platforms to establish new public-private partnerships. For instance, the UAE Ministry of Infrastructure upgraded its IT infrastructure to support smart government initiatives.

Observing these rapid and drastic changes in demand and supply patterns encouraged the industry analysts at Arizton to publish exhaustive and data-driven insights on these current trends in the industry. Arizton has a dedicated vertical that focuses on data center knowledge base across geographies. These market research reports cover a detailed analysis of the COVID-19-induced supply chain disruptions, innovations in technology, equipment financing, economic impact, and a detailed study of the competitive landscape. 

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Saudi Arabia Data Center Market - Investment Analysis & Growth Opportunities 2021-2026 

The Saudi Arabia data center market is expected to reach USD 1180 million in 2026, growing at a CAGR of 7.85% during the period 2020-2026.

The kingdom of Saudi Arabia is becoming one of the important locations across Middle East for data center investments. Riyadh hosts major ICT companies and has a leading startup ecosystem and is a major city for data center investments. Riyadh witnessed investments of over USD 55 million through data center facilities opened and underdeveloped from Jan 2020 to June 2021. In 2021, ACWA Power, a Saudi Arabia based energy company announced the opening of the 300 MW Sakaka IPP PV project, a utility-scale solar renewable energy project in the country.

The increased production and consumption of renewable energy can be utilized for data center purposes. ACWA Power signed a 25-year long power purchase agreement for the 1.5GW Sudair photovoltaic (PV) solar project in Saudi Arabia. Also, the National Renewable Energy Program (NREP) was initiated under King Salman Renewable Energy Initiative to maximize renewable energy and is expected to receive an investment of USD 20 billion for renewable energy generation for the next 10 years and will fuel data center demand in the country.

Read more now: https://www.arizton.com/market-reports/saudi-arabia-data-center-market-investment-analysis

United Arab Emirates (UAE) Data Center Market - Investment Analysis and Growth Opportunities 2021-2026 

The UAE data center market is expected to reach USD 1,015 million in 2026 growing with a CAGR of 7.99% during the period 2020-2026. The UAE is one of the largest data center markets in Middle East and Africa region. Over the past 5-6 years there has been a significant growth in the market with an increase in the investment on data centers. In 2020, the total investment in the UAE market was around USD 640 million. Dubai is one of the most preferred locations for data centers in the UAE, followed by Abu Dhabi.  In 2020, in Dubai, data center facilities that opened and the ones under development witnessed investments of around USD 43 million. Equinix is investing over USD 60 million for a new data center facility in Dubai (DX3 phase 1), with a rack capacity of 900 units and an IT load power capacity of 7 MW, which is expected to be operational by Q1 2022.

The adoption of cloud by companies because of COVID-19 is also driving data center demand. For instance, Dubai Airports currently uses Microsoft's Azure cloud service for Wi-Fi services. Also in 2018, SAP launched its first data center in the UAE from which it provides cloud-based services to local companies.

Read more now: https://www.arizton.com/market-reports/united-arab-emirates-data-center-market

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