GCC Data Center Market Report 2023-2028 Featuring Key DC Investors - AWS, Batelco, e&, Equinix, Google, Khazna, MEEZA, Mobily, Moro Hub, Oman Data Park, Ooredoo, STC, Tencent, Zain, & Zajil Telecom

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Feb 28, 2023, 19:30 ET

DUBLIN, Feb. 28, 2023 /PRNewswire/ -- The "GCC Data Center Market - Investment Analysis & Growth Opportunities 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The GCC data center market is expected to reach a value of $5.5 billion by 2028 from $3.44 billion in 2022, growing at a CAGR of 8.14%

This report analyses the GCC data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments.

DRIVING FACTORS FOR INVESTMENT IN THE REGION

The increased demand for the facilities is driven by the presence of smart cities, 5G and its applications, and the adoption of artificial intelligence and cloud-based services.

The increase in the adoption of cloud-based services in the region is growing the establishment of cloud regions by major cloud service providers such as Microsoft, Tencent cloud, Oracle, Amazon Web Services, and Alibaba Cloud. Microsoft Azure is opening its new cloud region in Qatar, a global data center facility. The region is also witnessing the adoption of cloud services as the governments adopt policies for implementing cloud services in the region. For instance, the Saudi Arabian government implemented the Cloud first policy to adopt cloud services in the region.

Telecom operators such as Saudi Telecom Company (stc), Mobily, Zain, Atlas, Sirius Telecom, Ooredoo, Nokia, Ericsson, and Vodafone are the major companies that deploy 5G connectivity in the GCC data center market. In the GCC region, around five submarine cables are currently under development. In terms of existing submarine cables, United Arab Emirates has the largest network of Submarine cables, with more than 15 submarine cables connected.

DRIVING FACTORS FOR AREA IN THE REGION

The government initiatives for developing the GCC data center market include the steps taken to reduce the price of the land to promote investment in the country. For instance, the Oman government reduce the cost of the land to facilitate the investment of the data centers in the country.

The presence of industrial parks, the availability of land, and the government's support motivate the operators to develop facilities in GCC countries. For instance, the Government of Bahrain announced the launching of its first data center park, which includes the development of its first data center by stc Bahrain through collaboration with the ministry of transport and Telecommunications.

The majority of the GCC countries have the availability of Free Trade Zones (FTZs). For instance, Oman has free trade zones such as the Al Mazunah Free Zone, Salalah Free Zone, Sohar Free Zone, and Duqm SEZ. These zones provide multiple benefits to investors, including corporate tax exemption, full exemption of import and export taxes, and local labor recruitment.

DRIVING FACTORS OF THE POWER CAPACITY IN THE REGION

In terms of renewable energy, GCC countries produce renewable energy majorly from solar, geothermal, and wind energy sources & aim to be carbon neutral. For instance, the UAE announced its plan to achieve net-zero emissions by 2050 with an investment of over USD 160 billion towards renewable energy.

The GCC countries make initiatives for the development of renewable energy. For instance, the Bahrain government took National Energy Efficiency Action Plan (NEFAP), and the National Renewable Energy Action Plan (NREAP) was formed to increase the renewable energy addition by 10% in 2035.

In addition, the GCC region is witnessing a rise in investments in solar parks and renewable energy sources, which facilitate increasing renewable energy usage during the forecasted period. For instance, Shagaya renewable-energy park plans to expand its generation capacity of 4 GW by developing concentrated solar power (CSP) plants, solar PV farms, and wind farms by 2027.

The region also witnessed the power purchase agreement for powering the data centers. For instance, Khazna Data Centers formed a new Joint Venture (JV) with BEEAH Digital and planned to build a new 9 MW data center that will likely be powered by solar power. In terms of IT load, Saudi Arabia is dominating the GCC data center market with the addition of IT load by upcoming facilities during the forecast period. The UAE, Qatar, Oman, Kuwait, and Bahrain follow Saudi Arabia.

SUPPLY & DEMAND IN THE GCC DATA CENTER MARKET

Government support and initiatives in digitalization are expected to boost the GCC data center market. For instance, the Arab League Digital Economy Federation (AFDE) signed a Memorandum of Understanding (MoU) with ATDXT, a UAE-based digital transformation company, to build a new regional facility to promote digital transformation across the Gulf region.

The UAE is the most advanced technology market among GCC countries in the GCC region due to the presence of two smart cities, such as Abu Dhabi and Dubai, which drives the demand for data center investments. The expansion of cloud regions by hyperscale operators and internet service providers is fuelling the region's significant demand for data center investments.

The major colocation service providers in the GCC data center market include Ooredoo, Khazna Data Centers, Equinix, Gulf data hub, Zajil Telecom, Moro Hub, Oman Data Park, Mezza, Etisalat, and Saudi Telecom Company (stc). In addition, the region is also witnessing investments from new entrants such as ZeroPoint DC, EDGNEX, and Quantum Switch.

The migration of the on-premises data centers to colocation is increasing in the GCC region. For instance, the Abu Dhabi Accountability Authority (ADAA) was the first government entity to migrate its workloads from the on-premises data center to the G42 (Group 42) cloud.

In the GCC region, several sectors, such as BFSI, healthcare, education, hospitality, government, and transport, have observed data migration to the cloud. For instance, the educational institutions in the GCC region migrated their core applications, such as Student Information System (SIS) and Correspondence Management System (CMS), to the AWS cloud.

WHY SHOULD YOU BUY THIS RESEARCH?

The GCC market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
A transparent research methodology and the analysis of the demand and supply aspects of the market.

Coverage

Facilities Covered (Existing): 78
Facilities Identified (Upcoming): 44
Coverage: 6 Countries
Existing vs. Upcoming (Area)
Existing vs. Upcoming (IT Load Capacity)

VENDOR LANDSCAPE

Major Vendors

IT Infrastructure Providers

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

Data Center Construction Contractors & Sub-Contractors

AECOM
Al Latifia Trading & Contracting
Aldar Properties
Arup
Ashi & Bushnag
Atkins
Capitoline
Dar
DC PRO BV
Direct Services
Edarat Group
EGEC
Egis
HATCO
HHM Building Contracting
Hill International
ICS Nett
INT'LTEC Group
JAMED
James L. Williams (JLW)
Laing O'Rourke
Linesight
M+W Group
Mace
Marafie Group
McLaren Construction Group
Red Engineering
RW Armstrong
SANA Creative Systems
Specialist Technical Services (STS Group)
Turner & Townsend

Support Infrastructure Providers

ABB
Airedale
Alfa Laval
Canovate
Caterpillar
Cummins
Delta Electronics
Eaton
Enrogen
Envicool
Grundfos
Honeywell International
Johnson Controls
Legrand
Mitsubishi Electric
Rittal
Rolls-Royce
STULZ
Schneider Electric
Siemens
Vertiv

Data Center Investors

Amazon Web Services (AWS)
Batelco
Etisalat (e&)
Equinix
Gulf Data Hub
Google
Khazna Data Centers
MEEZA
Mobily
Moro Hub
Oman Data Park
Ooredoo
Saudi Telecom Company (stc)
Tencent Cloud
Zain
Zajil Telecom

New Entrants

EDGNEX
Quantum Switch
ZeroPoint DC

EXISTING VS. UPCOMING DATA CENTERS

Existing Facilities in the region (Area and Power Capacity)
UAE
Saudi Arabia
Bahrain
Oman
Kuwait
Qatar
List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

The segmentation includes:

IT Infrastructure

Servers
Storage Systems

Network Infrastructure

Electrical Infrastructure

UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure

Mechanical Infrastructure

Cooling Systems
Racks
Other Mechanical Infrastructure

Cooling Systems

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

General Construction

Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression Systems
Physical Security
Data Center Infrastructure Management (DCIM)

Tier Standard

Tier I & Tier II
Tier III
Tier IV

Geography

UAE
Saudi Arabia
Bahrain
Oman
Kuwait
Qatar

For more information about this report visit https://www.researchandmarkets.com/r/7knt03-data-center?w=5

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