Middle East & Africa Green Data Center Market Report 2022-2027: Government Interest In Curbing Carbon Emissions - Hyperscale Operators Stacking Up On Renewable Energy PPAs

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Mar 01, 2023, 05:20 ET

DUBLIN, March 1, 2023 /PRNewswire/ -- The "Middle East & Africa Green Data Center Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The Middle East and Africa green data center market is expected to reach a value of $1.58 billion by 2027 from $690 million in 2021, growing at a CAGR of 14.81% during 2022-2027

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.

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.

PUE of Data Centers is Decreasing?

Data centers operators in the Middle East and Africa region are increasingly targeting a PUE of < 1.5, using innovative design, power, and cooling technologies such as hybrid cooling, advanced UPS systems, smart DCIM solutions, and the adoption of renewable energy sources.

Government Interest In Curbing Carbon Emissions Will Drive Middle East And Africa Green Data Center Market Developments

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.
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.
UAE has planned to reduce its carbon emissions by 31% by 2030.
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.
Governments are also partnering with renewable energy companies to develop renewable energy projects like wind and solar farms.

ELEMENTS OF GREEN DATA CENTERS

Innovations In Power Technologies

As Lithium and Nickel are essential innovations in batteries, the gulf countries, primarily Saudi Arabia, are investing in mining. It has planned to attract investment of around USD 32 billion in the minerals and mining sectors.
Lepidico, an Australian company, collaborates with Khalifa Industrial Zone Abu Dhabi (KIZAD) for lithium production in the Middle East. It has acquired over 600,000 square feet of land, aiming to invest around USD 95 million to set up its plants in Abu Dhabi.
To grow the usage of green energy, in August 2021, an investment of over USD 1 million was made by I-G3N, a battery manufacturer in South Africa.
In March 2022, Siemens announced that it would provide the first microgrid in Qatar, mostly for industrial use. It has collaborated with Qatar Solar Energy for its establishment. It will ultimately lessen the electricity cost and control greenhouse emissions at its facility in Doha.

Innovations In Cooling Technologies

The use of free cooling reduces the usage of water and power to cool IT infrastructure. For at least part of the year, free cooling can be explored in various countries that witness colder climates.
Owing to the hotter climate in most Middle Eastern and African countries, liquid cooling will be one of the better and more efficient techniques to ensure better cooling in data centers operating in the region.

Increasing Modular Data Center Design & Deployment

Modular data center buildouts tackle challenges such as a high PUE, high operational costs of traditional data centers, and high environmental impact.
The Middle East and Africa have both witnessed significant investments in modular data center deployment, which offers several efficiency-related benefits, including the opportunity for expansion based on business requirements, and lesser use of cement, among other things.
MDX-I's (Equinix) Lekki Data Center in Lagos, Nigeria, which opened in April 2022, has been built as a modular data center facility according to Tier III standards.

Hyperscale Operators Stacking Up On Renewable Energy PPAs

Google, AWS, Microsoft, Alibaba Cloud, and Oracle are some hyperscale operators in the Middle East and Africa region. They are all aggressively pursuing the adoption of renewable energy to meet their sustainability goals. For instance, in July 2021, AWS signed a deal with TotalEnergies to power its renewable energy operations and expanded its partnership in various regions, including the Middle East.

Renewable Energy Adoption by Colocation Service Providers

Equinix, Africa Data Centres, Rack Centre, Moro Hub, Gulf Data Hub, Khazna Data Centers, and Digital Realty are some significant data center service providers operating using renewable energy and aiming to be carbon neutral in the Middle East and Africa green data center market.
For instance, Moro Hub, a DEWA's digital arm Digital DEWA subsidiary, is constructing a facility at Dubai's Mohammed bin Rashid Al Maktoum Solar Park. The carbon-neutral green data center, with a more than 100 MW capacity, will be powered exclusively by renewable energy.

VENDOR LANDSCAPE

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

Green Data Center Metrics

Policy Drivers

the Paris Agreement & Science Based Targets Initiative (Sbti)
Climate Neutral Data Centre Pact
Long Duration Energy Storage (Ldes) Council
Re100
Circular Economy
Energy Certifications
It Infrastructure Efficiency
E-Waste Disposal

Market Opportunities & Trends

Establishment of Green It Solutions
Server Virtualization
Converged & Hyperconverged Infrastructure
Advanced Risc Machine (Arm) Servers
Data Storage Administration

Governments' Carbon Neutrality Pledge

Adoption of Innovative Power Technologies

Ecodiesel Generators
Natural Gas Generators
Fuel Cells
Hvo Fuel
Nuclear Energy Generation
Microgrids
Grid Interactive Ups

Adoption of Advanced Ups Batteries

Green Construction & Urban Maintenance Techniques

Modular Data Center Deployment
Other Construction Techniques

Innovative Data Center Cooling Technologies

Market Growth Enablers

Renewable Energy Initiatives by Hyperscale & Cloud Operators
Renewable Energy Initiatives by Colocation Operators
Automated & Intelligent Monitoring Solutions
Deployment of Modular Data Centers

Market Restraints

Increased Carbon Emissions from Data Centers
Water Consumption by Data Centers
Lack of Skilled Data Center Professionals
Location Constraints for Green Data Centers

For more information about this report visit https://www.researchandmarkets.com/r/mdqtd3-east-and?w=5

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