Data Center Construction Market in Middle East & Africa - Industry Outlook and Forecast 2019-2024
The MEA data center construction market is expected to reach $1 billion, growing at a CAGR of 9 % during 2018−2014.
Increasing smartphone users, growing broadband connectivity, rising adoption of new technologies, and high demand for colocation services are factors driving the MEA data center construction market. The investment in the data center market in Middle East and Africa (MEA) region is growing significantly, aided by the construction of data center facilities by telecommunication providers, enterprises, government, cloud and colocation service providers. In the last few years, the MEA data center construction market has witnessed the entry of hyperscale data center service providers. The growing application of cloud-based SaaS solutions will be a predominant driver for increased hyperscale investments in the market. Recently, Alibaba, AWS, and Microsoft have shown interest in the cloud service market in MEA.
AWS, Microsoft, icolo.io, MainOne, Liquid Telecommunications, Internet Solutions, Global Data Center, Kenya Government, Telkom Kenya, and Algerian Customs will carry out datacenter investments in 2019. The formation of the African Datacenter Association is likely to aid the MEA data center construction market. High demand for colocation services in sectors such as retail/e-commerce, BFSI, healthcare, technology, and transportation is expected to strengthen the MEA data center construction market.
The MEA data center construction market research report offers a detailed overview of market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The study includes in-depth insights on segmentation based on electrical infrastructure (UPS system generators, transfer switches and switch gears, rack PDUs, and others electrical infrastructure), mechanical infrastructure(cooling systems, rack and other mechanical infrastructure), tier standards (Tier I&II, Tier III, and Tier IV), general construction (building design services, building development (site preparation and structural development), security (cameras, access systems, and perimeter protection), DCIM (datacenter infrastructure management software), installation and commissioning services, and countries (UAE, Saudi Arabia, South Africa, Nigeria and others).
The report considers the present scenario of the MEA data center construction market and its market dynamics for the period 2019−2024. It covers a detailed overview of several growth enablers, restraints, and trends in the MEA data center construction market. The study includes both the demand and supply aspect of the data center construction market. It profiles and analysis leading infrastructure vendors, data center construction contractors, and colocation service providers.
Data Center Construction Market: Segmentation
This market research report includes a detailed segmentation of the market by electrical infrastructure, mechanical infrastructure, tier standards, general construction, and countries. The MEA data center construction market by electrical infrastructure is classified into UPS system, generators, transfer switches and switchgear, rack PDUs, and other electrical infrastructure. The UPS system segment dominated the market in 2018 and is expected to grow at a CAGR of approx. 9% during the forecast period.
Mechanical infrastructure includes cooling systems, racks, and other infrastructure. Cooling systems use both air and water-based solutions to cool the data center facility. Computer room air conditioners (CRAC), computer room air handlers (CRAH), chillers, cooling towers, and dry coolers are the commonly adopted cooling infrastructure in the MEA data center construction market. The market will continue to witness the use of both air-based and water-based cooling techniques, thereby boosting the MEA data center construction market.
The MEA data center construction market by tier standards can be segmented into Tier I&II, Tier III, and Tier IV. Tier III data center facilities are the fastest growing segment in the MEA market, growing at a CAGR of about 14%. These data centers have minimum N+1 redundancy across data center infrastructure, with around 1.6 hours of annual downtime. Given these benefits, several underdeveloped data center projects are designed on the Tier III standard, and the trend is likely to continue in the MEA data center construction market during the forecast period. AWS Bahrain facility and Etix Everywhere Ghana Data Center are major contributors toward the tier IV data center market in MEA.
The MEA data center construction market by general construction includes building design services, building development (site preparation and structural development), security (cameras, access systems, and perimeter protection), DCIM (data center infrastructure management software), and installation and commissioning services. The general construction segment is the fastest expanding segment in terms of revenue, growing at a CAGR of about 10%. The MEA data center construction market will witness both greenfield and modular datacenter deployment. The shortage of skilled labors will be a significant challenge in the market as it will increase the dependency on global contractors and modular and infrastructure service providers. The increasing OPEX will increase the adoption of DCIM solutions, and the rapid growth in colocation data centers will increase the investment in physical security systems in the MEA market.
Market Segmentation by Electrical Infrastructure
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