Middle East Data Center Market - Industry Outlook & Forecast 2022-2027

Middle East Data Center Market - Industry Outlook & Forecast 2022-2027

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Middle East Data Center Market Report

Middle East data canter market witnessed investments of USD 3.89 billion in 2021 and will witness investments of USD 6.73 billion in 2027, growing at a CAGR of 9.56% during 2022-2027

The demand for cloud computing, big data, and IoT technologies will be a predominant driver for data center development in the Middle Eastern region. The Middle Eastern region witnessed data center investments from telecommunication service providers and global colocation operators. Most Middle Eastern countries' government are taking initiatives by developing special economic zones and industrial parks, which provides tax exemptions for data center development. In the Middle East, more than 15 data centers have added a white floor area of around 30,000 square feet area. In addition, approximately 10 data center facilities opened and under construction in 2021 have added a white floor area between 30,000 to 70,000 square feet.

The following factors are likely to contribute to the growth of the Middle East data center market –

• 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

The study considers a detailed scenario of the present Middle East data center market and its market dynamics for the period 2022−2027. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.

KEY HIGHLIGHTS

• Middle Eastern countries are working towards digital transformation to attract foreign investments. 5G network deployment fuels the digital transformation, IoT, smart cities, and fourth industrial revolution.
• Middle East enjoys a strategic location between Africa and APAC that can easily connect both regions. This will benefit data center operators to invest in the submarine cable network passing through the country, thus will drive the MENA data center market.

MIDDLE EAST DATA CENTER MARKET SEGMENTS

The Middle East data center market has the following segmentation-

• Infrastructure
• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Cooling Technique
• General Construction
• Geography

MIDDLE EAST DATA CENTER MARKET SEGMENTATION

• The server market is slowly shifting from rack-based servers to blade servers to support a high-density operating environment. This is because of the increased usage of IoT, big data analytics, artificial intelligence, and machine learning by enterprises across the Middle Eastern market.
• UPS systems are being widely adopted to provide backup power for cooling systems installed in the facility. The adoption of lithium-ion batteries is likely to increase during the forecast period as their price will continue to decline in the Middle East data center industry.

Market segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General infrastructure

Market segmentation by IT infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Market segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Market segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Market segmentation by Cooling Systems

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

Market Segmentation by Cooling Technique

• Air-Based Cooling Technique
• Liquid-Based Cooling Technique

Market Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM/BMS

Market Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL OUTLOOK

• In 2021, the UAE will be one of the preferred data center locations in the Middle East, with more than 10 data center facilities investments. In 2021, Amazon Web Services announced the development of a new data center region in Abu Dhabi, which consists of three availability zones in the UAE. It is expected to be opened in the first half of 2022.
• In 2021, The Saudi Ministry of Communications and Information Technology (MCIT) launched a USD 18 billion plan to collaborate with local players to build a network of hyperscale data centers across Saudi Arabia. Also, in terms of investment, Riyadh and Jeddah are the preferred locations, with major investments from colocation, enterprise, and government entities.

Market Segmentation by Geography

• UAE
• Saudi Arabia
• Israel
• Turkey
• Oman
• Qatar
• Bahrain
• Kuwait
• Jordan
• Other Middle Eastern Countries

VENDOR LANDSCAPE

• HPE, Dell, IBM, Huawei, Lenovo, NetApp, and Cisco are among the major revenue generators in the market. The innovations in the IT infrastructure space will result in the launch of new solutions at an affordable cost that suits the operational business needs of enterprises.
• Infrastructure providers enhance their DCIM and BMS operations through automation and artificial intelligence. The construction of mega data centers with thousands of infrastructure racks will be the major revenue generators for DCIM and BMS solution providers.

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

KEY QUESTIONS ANSWERED:

1. How big is the Middle East data center market?

2. Who are the key investors in the Middle East data center industry?

3. What segments are covered in the Middle East data center market?

4. What are the factors driving the data center colocation market growth in the Middle East?

5. Which segment has the highest share in the Middle East Data Center Market?
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