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

- 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

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Arizton Advisory & Intelligence

Dec 22, 2021, 16:12 ET

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

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