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Data Center Market in Middle East - Industry Outlook and Forecast 2021-2026

  • ID: 5313413
  • Report
  • April 2021
  • Region: Middle East
  • 263 pages
  • Arizton
UP TO OFF
until Jun 30th 2021

FEATURED COMPANIES

  • Akbank
  • Batelco
  • Edarat Group
  • Harinsa Qatar (HQ)
  • Khazna
  • RED Engineering
  • MORE
1h Free Analyst Time

Speak directly to the analyst to clarify any post sales queries you may have.

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

The Middle East data center market by investment is expected to grow at a CAGR of 7% during the period 2020-2026.

The data center market has observed a steady growth due to the outbreak of the COVID-19 pandemic, resulting in heightened access to internet-related services aided by nationwide lockdowns and restrictions. IoT-enabled devices witnessed high acceptance for monitoring and surveillance purposes, especially in the healthcare sector, during the pandemic. Government agencies have also contributed to the growth of cloud-based services in the Middle East. In Kuwait, the Ministry of Health (MoH), the Central Agency for Information Technology (CAIT), collaborated with Zain to launch an application - Shlonik to monitor citizens that have returned to the country. The growing adoption of cloud, IoT, big data in the wake of the COVID-19 has increased colocation investments in the region. Cloud, social media, and video conferencing service providers have contributed majorly to data generation. Many enterprises operating in the cloud are migrating to colocation data centers to operate hybrid infrastructure services.

The following factors are likely to contribute to the growth of the Middle East data center market during the forecast period:
  • Smart City Initiatives fueling Data Center Deployments
  • Submarine Cable Deployment and Impact on Data Center Investment
  • Big Data, IoT, and Cloud Technology driving Data Center Investments
  • Migration from On-Premises Infrastructure to Colocation & Managed Service
The study considers the present scenario of the Middle East data center market and its market dynamics for the period 2020−2026. 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.

Middle East Data Center Market Segmentation

The Middle East data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography. The Middle East IT infrastructure market expects to grow at a CAGR of over 6% during 2020-2026. The server market is shifting slowly from rack-based 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. Enterprises prefer servers that can reduce space in the data center environment without affecting performance.

The UPS market in the Middle East anticipates to cross USD 89 million during the forecast period. There has a steady rise in the deployment of edge computing; also, colocation operators are investing in the region, which increases the demand for high-capacities UPS in the region. The use of 750−1,500 kVA systems has witnessed high adoption along with less than 500 kVA UPS systems. The adoption of lithium-ion batteries is also likely to increase during the forecast period as the price of these batteries is expected to decline during the forecast period.

Cooling systems, including water-cooled chillers, CRAH, and cooling towers, are installed with N+20 redundancy in the Middle East region. Most facilities in the region design to cool servers via water-based cooling techniques. The growing construction of data centers in the UAE is a key factor in developing multiple chillers, cooling towers, and CRAH units. In Saudi Arabia, data centers' construction will increase the adoption of multiple chillers, cooling towers, and CRAH units. Newly constructed data center facilities will use advanced air-based cooling techniques because of the high temperature. Data centers in Turkey adopt CRAC & CRAH units and chiller units. In terms of redundancy, most operators use N+1 and N+2 cooling redundancy. Besides, operators are likely to deploy dual water feed for efficient and uninterruptable operations.

Brownfield development is more cost-effective than greenfield development in the Middle East. In the Middle Eastern region, data center commissioning service providers follow standard operating procedures, depending on the depth of commissioning required in the facility. The Middle East data center market is mostly dominated by small data centers with less than 15 MW power centers. The building & engineering design market is expected to reach over USD 32 million in 2026, growing at a CAGR of approx-7%. The increasing demand for reliable, efficient, and flexible building infrastructure among service operators is expected to influence its growth. The adoption of physical security apparatus is increasing to protect the data and information. BFSI, telecommunication, and healthcare are the most vulnerable sectors for intrusions and breaches. Sensors and video cameras are installed for surveillance in data centers in the region. The use of artificial intelligence and machine learning in the data center is driving the DCIM solutions market. DCIM solutions improve efficiency, monitor power consumption, and predict system failures. They are becoming a major part of data center operations as they monitor critical elements such as power, cooling, and IT infrastructure.

Most data centers in the UAE are Tier III certified or built according to Tier III standards. Several data centers in Saudi Arabia are built according to Tier III or Tier IV standards and have a minimum redundancy of N+1 in power and cooling infrastructure. Tier III data centers are equipped with UPS systems redundancy of N+1. The majority of modern data centers in Turkey are developed according to Tier III standards, with a minimum of N+1 redundancy in power infrastructure. A few data centers operate 2N power infrastructure or have additional capacity to commission 2N infrastructure solutions based on the customer’s demand. Most developments in Turkey are greenfield projects, whereas modular data centers are confined to enterprise on-premises deployments.

By IT Infrastructure
  • Servers
  • Storage
  • Network
By Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches and Switchgears
  • PDUs
  • Other Electrical Infrastructures
By Mechanical Infrastructure
  • Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Dry Coolers, & Condensers
  • Other Cooling Units
  • Racks
  • Others Mechanical Infrastructure
By Cooling Technique
  • Air-based Cooling Technique
  • Liquid-based Cooling Technique
By General Construction
  • Core and Shell Development
  • Installation and Commissioning Services
  • Engineering and Building Designs
  • Physical Security
  • DCIM/BMS
By Tier Standards
  • Tier I & II
  • Tier III
  • Tier IV
INSIGHTS BY GEOGRAPHY

Turkey, UAE, and Saudi Arabia are the three largest contributors to the Middle East data center market share. The rising adoption of cloud-based services leads to the growth of retail and wholesale colocation services in the UAE. The market is witnessing an increase in the demand for colocation spaces across existing and upcoming data centers. The rapid investment in 5G technology and its deployment is increasing investments in data centers. Dubai is one of the most preferred locations for data centers in the UAE, followed by Abu Dhabi. Similarly, Saudi Arabia is observing rapid digitalization and automation of business activities. In 2020, over 75% of companies implemented IoT in their applications. The internet penetration in Saudi Arabia was around 95% in 2020. Enterprises across various industries such as banking, financial services, insurance, IT & telecommunications, energy & utilities, media & entertainment, and manufacturing have adopted cloud services, thereby driving the market.

By Geography
  • Middle Eastern Countries
  • UAE
  • Saudi Arabia
  • Jordan
  • Turkey
  • Other Middle Eastern Countries
INSIGHTS BY VENDORS

Arista Network, AWS, Atos, Broadcom, Cisco Systems, and Dell Technologies are among the major IT vendors expanding their presence in the Middle East region. They have a strong physical presence in the region and are the major adopters of high-density, mission-critical servers, storage infrastructure, and network infrastructure. Vendors are focusing on sustainable data centers. They procure renewable energy sources in partnership with local service providers. Construction and design are critical for data center operators because they need to adhere to the Uptime standards.

Key Data Center Critical (IT) Infrastructure Providers
  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise (HPE)
  • Huawei Technologies
  • IBM
  • Lenovo
  • NetApp
Key Data Center Contractors
  • Atkins
  • Deerns
  • ENMAR ENGINEERING
  • Edarat Group
  • ISG
  • RED Engineering
  • Harinsa Qatar (HQ)
  • Turner & Townsend
  • McLaren Construction Group
  • LAING O’ROURKE
  • ICS Nett
  • Linesight
  • Qatar Site and Power (QSP)
Key Data Center Investors
  • Amazon Web Services (AWS)
  • Akbank
  • Batelco
  • Etisalat Group
  • Equinix
  • Gulf Data Hub
  • Turkcell
  • Telecom Italia Sparkle
  • Khazna
  • Zain
KEY QUESTIONS ANSWERED
1. How big is the Middle East data center market?
2. What factors are driving the data center market in the Middle East?
3. What opportunities are offered in the UAE data center market?
4. What is the Middle East data center market growth?
5. What factors are enabling the growth of colocation service providers in the region?
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Akbank
  • Batelco
  • Edarat Group
  • Harinsa Qatar (HQ)
  • Khazna
  • RED Engineering
  • MORE
1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of The Study
4.4 Market Segments

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance

7 Introduction
7.1 Internet & Data Growth
7.2 Data Center Site Selection Criteria

8 Market Opportunities & Trends
8.1 5G To Grow Edge Data Center Investments
8.2 Growing Procurement Of Renewable Energy
8.3 Submarine Cable Deployment & Impact On Data Center Investment
8.4 Smart City Initiatives Fuel Data Center Deployments

9 Market Growth Enablers
9.1 Impact Of COVID-19 On Data Center Market
9.2 Rise In Data Center Investments
9.3 Big Data, IoT & Cloud Drive Data Center Investment
9.4 Migration From On-Premises Infrastructure To Colocation & Managed Services
9.5 Modular Data Center Development

10 Market Restraints
10.1 Location Constraints For Data Center Construction
10.2 Lack Of Skilled Workforce
10.3 Security Breaches Hinder Data Center Investments

11 Market Landscape
11.1 Market Overview
11.2 Market Size & Forecast
11.3 Area
11.4 Power Capacity
11.5 Five Forces Analysis

12 Infrastructure
12.1 Market Snapshot & Growth Engine
12.2 IT Infrastructure
12.3 Electrical Infrastructure
12.4 Mechanical Infrastructure
12.5 General Construction

13 IT Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Server Infrastructure
13.3 Storage Infrastructure
13.4 Network Infrastructure

14 Electrical Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 UPS Systems
14.3 Generators
14.4 Transfer Switches & Switchgear
14.5 Power Distribution Units
14.6 Other Electrical Infrastructure

15 Mechanical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Cooling Systems
15.3 Racks
15.4 Other Mechanical Infrastructure

16 Cooling Systems
16.1 Market Snapshot & Growth Engine
16.2 CRAC & CRAH Units
16.3 Chiller Units
16.4 Cooling Towers, Condensers & Dry Coolers
16.5 Other Cooling Units

17 Cooling Technique
17.1 Market Snapshot & Growth Engine
17.2 Air-Based Cooling Techniques
17.3 Liquid-Based Cooling Techniques

18 General Construction
18.1 Market Snapshot & Growth Engine
18.2 Core & Shell Development
18.3 Installation & Commissioning Services
18.4 Building & Engineering Design
18.5 Physical Security
18.6 DCIM/BMS Solutions

19 Tier Standards
19.1 Market Snapshot & Growth Engine
19.2 TIER I & II
19.3 TIER III
19.4 TIER IV

20 Geography
20.1 Market Snapshot & Growth Engine
20.2 Area Snapshot & Growth Engine
20.3 Power Capacity Snapshot & Growth Engine
20.4 United Arab Emirates
20.5 Saudi Arabia
20.6 Turkey
20.7 Jordan
20.8 Other Middle Eastern Countries

21 Competitive Landscape
21.1 IT Infrastructure
21.2 Construction Contractors
21.3 Data Center Investors

22 Prominent It Infrastructure Vendors
22.1 Arista Networks
22.2 ATOS
22.3 Broadcom
22.4 Cisco Systems
22.5 Dell Technologies
22.6 Hewlett Packard Enterprise
22.7 Huawei Technologies
22.8 International Business Machines Corp. (IBM)
22.9 Lenovo
22.10 Netapp

23 Prominent Construction Contractors
23.1 Atkins
23.2 Deerns
23.3 Enmar Engineering
23.4 Edarat Group
23.5 ISG
23.6 Red Engineering
23.7 Harinsa Qatar
23.8 Turner & Townsend
23.9 McLaren Construction Group
23.10 Laing O’rourke
23.11 ICS Nett
23.12 Linesight
23.13 Qatar Site And Power

24 Prominent Data Center Investors
24.1 Amazon Web Services (AWS)
24.2 AKBANK
24.3 Batelco
24.4 Etisalat
24.5 Equinix
24.6 Gulf Data HUB
24.7 Turkcell
24.8 Telecom Italia Sparkle
24.9 Khazna
24.10 Zain

25 Report Summary
25.1 Key Takeaways

26 Quantitative Summary
26.1 Middle East Data Center Market
26.2 Market Segmentation
26.3 Geographical Segmentation
26.4 UAE
26.5 Saudi Arabia
26.6 Turkey
26.7 Jordan
26.8 Other Middle Eastern Countries

27 Appendix
27.1 Abbreviations
Note: Product cover images may vary from those shown
  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise (HPE)
  • Huawei Technologies
  • IBM
  • Lenovo
  • NetApp
  • Atkins
  • Deerns
  • ENMAR ENGINEERING
  • Edarat Group
  • ISG
  • RED Engineering
  • Harinsa Qatar (HQ)
  • Turner & Townsend
  • McLaren Construction Group
  • LAING O’ROURKE
  • ICS Nett
  • Linesight
  • Qatar Site and Power (QSP)
  • Amazon Web Services (AWS)
  • Akbank
  • Batelco
  • Etisalat Group
  • Equinix
  • Gulf Data Hub
  • Turkcell
  • Telecom Italia Sparkle
  • Khazna
  • Zain
Note: Product cover images may vary from those shown

Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.

Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.



 

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