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

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    Report

  • 255 Pages
  • January 2023
  • Region: Africa, Middle East
  • Arizton
  • ID: 5714624
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The Middle East and Africa green data center market is expected to grow 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.

MARKET SEGMENTATION

Segmentation By Infrastructure

  • Electrical
  • Mechanical
  • General Construction

Segmentation By Electrical Infrastructure

  • UPS Systems
  • Generators
  • Other Electrical Infrastructures

Segmentation By Mechanical Infrastructure

  • Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers & Dry Coolers
  • Other Cooling Units
  • Racks
  • Others Mechanical Infrastructure

Segmentation By Cooling Technique

  • Air-based Cooling Technique
  • Liquid-based Cooling Technique

Segmentation By General Construction

  • Core and Shell Development
  • MEP & Architectural Design Services
  • Physical Security
  • Fire Detection & Suppression
  • DCIM/BMS

Segmentation By Geography

  • Middle East
  • Saudi Arabia
  • UAE
  • Other Middle Eastern Countries
  • Africa
  • South Africa
  • Other African Countries
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

KEY QUESTIONS ANSWERED

1. How big is the Middle East and Africa green data center market?
2. What is the growth rate of the Middle East and Africa green data center market?
3. What are the latest Middle East and Africa green data center market trends?
4. Which country holds the largest Middle East and Africa green data center market share?
5. What factors drive the growth of the Middle East and Africa green data center market?
Frequently Asked Questions about the Middle Eastern & African Green Data Center Market

What is the estimated value of the Middle Eastern & African Green Data Center Market?

The Middle Eastern & African Green Data Center Market was estimated to be valued at $690 Million in 2021.

What is the growth rate of the Middle Eastern & African Green Data Center Market?

The growth rate of the Middle Eastern & African Green Data Center Market is 14.8%, with an estimated value of $1580 Million by 2027.

What is the forecasted size of the Middle Eastern & African Green Data Center Market?

The Middle Eastern & African Green Data Center Market is estimated to be worth $1580 Million by 2027.

Who are the key companies in the Middle Eastern & African Green Data Center Market?

Key companies in the Middle Eastern & African Green Data Center Market include Amazon Web Services (AWS), Africa Data Centres, Equinix, Future Digital Data Systems (FDDS), Gulf Data Hub, Digital Realty, IXAfrica, Moro Hub and Microsoft.

Table of Contents

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
4.4.1 Market Segment by Infrastructure
4.4.2 Market Segmentation by Electrical Infrastructure
4.4.3 Market Segmentation by Mechanical Infrastructure
4.4.4 Market Segmentation by General Construction
4.4.5 Market Segmentation by Geography

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

6 Market at a Glance

7 Premium Insights

8 Introduction
8.1 Green Data Center Metrics
8.2 Pue
8.2.1 Key
8.3 Policy Drivers
8.3.1 the Paris Agreement & Science Based Targets Initiative (Sbti)
8.3.2 Climate Neutral Data Centre Pact
8.3.3 Long Duration Energy Storage (Ldes) Council
8.3.4 Re100
8.3.5 Circular Economy
8.4 Energy Certifications
8.5 It Infrastructure Efficiency
8.5.1 E-Waste Disposal

9 Market Opportunities & Trends
9.1 Establishment of Green It Solutions
9.1.1 Server Virtualization
9.1.2 Converged & Hyperconverged Infrastructure
9.1.3 Advanced Risc Machine (Arm) Servers
9.1.4 Data Storage Administration
9.2 Governments’ Carbon Neutrality Pledge
9.3 Adoption of Innovative Power Technologies
9.3.1 Ecodiesel Generators
9.3.2 Natural Gas Generators
9.3.3 Fuel Cells
9.3.4 Hvo Fuel
9.3.5 Nuclear Energy Generation
9.3.6 Microgrids
9.3.7 Grid Interactive Ups
9.4 Adoption of Advanced Ups Batteries
9.5 Green Construction & Urban Maintenance Techniques
9.5.1 Modular Data Center Deployment
9.5.2 Other Construction Techniques
9.6 Innovative Data Center Cooling Technologies

10 Market Growth Enablers
10.1 Renewable Energy Initiatives by Hyperscale & Cloud Operators
10.2 Renewable Energy Initiatives by Colocation Operators
10.3 Automated & Intelligent Monitoring Solutions
10.4 Deployment of Modular Data Centers

11 Market Restraints
11.1 Increased Carbon Emissions from Data Centers
11.2 Water Consumption by Data Centers
11.3 Lack of Skilled Data Center Professionals
11.4 Location Constraints for Green Data Centers

12 Market Landscape
12.1 Market Overview
12.2 Investment: Market Size & Forecast
12.3 Power Capacity: Market Size & Forecast
12.4 Five Forces Analysis
12.4.1 Threat of New Entrants
12.4.2 Bargaining Power of Suppliers
12.4.3 Bargaining Power of Buyers
12.4.4 Threat of Substitutes
12.4.5 Competitive Rivalry

13 Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Electrical Infrastructure
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.4 Mechanical Infrastructure
13.4.1 Market Overview
13.4.2 Market Size & Forecast
13.5 General Construction
13.5.1 Market Overview
13.5.2 Market Size & Forecast

14 Electrical Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Ups Systems
14.3.1 Market Overview
14.3.2 Market Size and Forecast
14.4 Generators
14.4.1 Market Overview
14.4.2 Market Size & Forecast
14.5 Other Electrical Infrastructure
14.5.1 Market Overview
14.5.2 Market Size & Forecast

15 Mechanical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Market Overview
15.3 Cooling Systems
15.3.1 Market Overview
15.3.2 Market Size & Forecast
15.4 Racks
15.4.1 Market Overview
15.4.2 Market Size & Forecast
15.5 Other Mechanical Infrastructure
15.5.1 Market Overview
15.5.2 Market Size & Forecast

16 General Construction
16.1 Market Snapshot & Growth Engine
16.2 Market Overview
16.3 Core & Shell Development
16.3.1 Market Overview
16.3.2 Market Size & Forecast
16.4 Mep & Architectural Design Services
16.4.1 Market Overview
16.4.2 Market Size & Forecast
16.5 Physical Security
16.5.1 Market Overview
16.5.2 Market Size & Forecast
16.6 Fire Detection & Suppression
16.6.1 Market Overview
16.6.2 Market Size & Forecast
16.7 Dcim/Bms Solutions
16.7.1 Market Overview
16.7.2 Market Size & Forecast

17 Geography
17.1 Investment: Snapshot & Growth Engine
17.2 Power Capacity: Snapshot & Growth Engine

18 Middle East
18.1 Investment: Snapshot & Growth Engine
18.2 Power Capacity: Snapshot & Growth Engine
18.3 Market Overview
18.4 Investment: Market Size & Forecast
18.5 Power Capacity: Market Size & Forecast
18.6 Market by Infrastructure

19 Uae
19.1 Market Snapshot & Growth Engine
19.2 Market Overview
19.3 Investment: Market Size & Forecast
19.4 Power Capacity: Market Size & Forecast

20 Saudi Arabia
20.1 Market Snapshot & Growth Engine
20.2 Market Overview
20.3 Investment: Market Size & Forecast
20.4 Power Capacity: Market Size & Forecast

21 Other Middle Eastern Countries
21.1 Market Snapshot & Growth Engine
21.2 Market Overview
21.3 Investment: Market Size & Forecast
21.4 Power Capacity: Market Size & Forecast

22 Africa
22.1 Investment: Snapshot & Growth Engine
22.2 Power Capacity: Snapshot & Growth Engine
22.3 Market Overview
22.4 Investment: Market Size & Forecast
22.5 Power Capacity: Market Size & Forecast
22.6 Market by Infrastructure

23 South Africa
23.1 Market Snapshot & Growth Engine
23.2 Market Overview
23.3 Investment: Market Size & Forecast
23.4 Power Capacity: Market Size & Forecast

24 Other African Countries
24.1 Market Snapshot & Growth Engine
24.2 Market Overview
24.3 Investment: Market Size & Forecast
24.4 Power Capacity: Market Size & Forecast

25 Prominent Data Center Investors
25.1 Amazon Web Services
25.1.1 Business Overview
25.1.2 Service Offerings
25.1.3 Sustainability
25.2 Africa Data Centres
25.2.1 Business Overview
25.2.2 Service Offerings
25.2.3 Sustainability
25.3 Equinix
25.3.1 Business Overview
25.3.2 Service Offerings
25.3.3 Sustainability
25.4 Future Digital Data Systems (Fdds)
25.4.1 Business Overview
25.4.2 Service Offerings
25.4.3 Sustainability
25.5 Gulf Data Hub
25.5.1 Business Overview
25.5.2 Service Offerings
25.5.3 Sustainability
25.6 Digital Realty
25.6.1 Business Overview
25.6.2 Service Offerings
25.6.3 Sustainability
25.7 Ixafrica
25.7.1 Business Overview
25.7.2 Service Offerings
25.7.3 Sustainability
25.8 Moro Hub
25.8.1 Business Overview
25.8.2 Service Offerings
25.8.3 Sustainability
25.9 Meeza
25.9.1 Business Overview
25.9.2 Service Offerings
25.9.3 Sustainability
25.10 Microsoft
25.10.1 Business Overview
25.10.2 Service Offerings
25.10.3 Sustainability
25.11 Ooredoo
25.11.1 Business Overview
25.11.2 Service Offerings
25.11.3 Sustainability
25.12 Paratus Group
25.12.1 Business Overview
25.12.2 Service Offerings
25.12.3 Sustainability
25.13 Rack Centre
25.13.1 Business Overview
25.13.2 Service Offerings
25.13.3 Sustainability
25.14 Raxio Data Centres
25.14.1 Business Overview
25.14.2 Service Offerings
25.14.3 Sustainability
25.15 Turkcell
25.15.1 Business Overview
25.15.2 Service Offerings
25.15.3 Sustainability
25.16 Google
25.16.1 Business Overview
25.16.2 Service Offerings
25.16.3 Sustainability

26 Renewable Energy Providers
26.1 Mase
26.1.1 Business Overview
26.1.2 Product/Service Offerings
26.2 Enerwhere
26.2.1 Business Overview
26.2.2 Product/Service Offerings
26.3 Solarwind Middle East
26.3.1 Business Overview
26.3.2 Product/Service Offerings
26.4 Yellow Door Energy
26.4.1 Business Overview
26.4.2 Product/Service Offerings
26.5 Masdar
26.5.1 Business Overview
26.5.2 Product/Service Offerings
26.6 Canadian Solar
26.6.1 Business Overview
26.6.2 Product/Service Offerings
26.7 Sirajpower
26.7.1 Business Overview
26.7.2 Product/Service Offerings
26.8 Acwa Power
26.8.1 Business Overview
26.8.2 Product/Service Offerings
26.9 Edf Renewables
26.9.1 Business Overview
26.9.2 Product/Service Offerings
26.10 Dubai Electricity and Water Authority
26.10.1 Business Overview
26.10.2 Product/Service Offerings
26.11 Engie
26.11.1 Business Overview
26.11.2 Product/Service Offerings
26.12 Amea Power
26.12.1 Business Overview
26.12.2 Product/Service Offerings
26.13 Totalenergies
26.13.1 Business Overview
26.13.2 Product/Service Offerings
26.14 Acciona Energia
26.14.1 Business Overview
26.14.2 Product/Service Offerings
26.15 Scatec
26.15.1 Business Overview
26.15.2 Product/Service Offerings

27 Report Summary
27.1 Key Takeaways

28 Quantitative Summary
28.1 Green Data Center Market
28.1.1 Overall Market: Market Size & Forecast
28.1.2 Infrastructure: Market Size & Forecast
28.2 Market by Infrastructure
28.2.1 Electrical Infrastructure: Market Size & Forecast
28.2.2 Mechanical Infrastructure: Market Size & Forecast
28.2.3 General Construction: Market Size & Forecast
28.3 Market by Geography
28.3.1 Investment: Market Size & Forecast
28.3.2 Power Capacity: Market Size & Forecast
28.4 Middle East
28.4.1 Overall Market
28.4.2 Infrastructure: Market Size & Forecast
28.5 Uae
28.5.1 Overall Market
28.6 Saudi Arabia
28.6.1 Overall Market
28.7 Other Middle Eastern Countries
28.7.1 Overall Market
28.8 Africa
28.8.1 Overall Market
28.8.2 Infrastructure: Market Size & Forecast
28.9 South Africa
28.9.1 Overall Market
28.10 Other African Countries
28.10.1 Overall Market

29 Appendix
29.1 Abbreviations

Companies Mentioned

  • 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
  • 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

Methodology


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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