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GCC Data Center Market - Investment Analysis & Growth Opportunities 2023-2028

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    Report

  • 178 Pages
  • January 2023
  • Region: Middle East
  • Arizton
  • ID: 5714643
1h Free Analyst Time
1h Free Analyst Time

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The GCC data center market is expected to grow at a CAGR of 8.14% from 2022-2028.

DRIVING FACTORS FOR INVESTMENT IN THE REGION

a) The increased demand for the facilities is driven by the presence of smart cities, 5G and its applications, and the adoption of artificial intelligence and cloud-based services.

b) The increase in the adoption of cloud-based services in the region is growing the establishment of cloud regions by major cloud service providers such as Microsoft, Tencent cloud, Oracle, Amazon Web Services, and Alibaba Cloud. Microsoft Azure is opening its new cloud region in Qatar, a global data center facility.

c) The region is also witnessing the adoption of cloud services as the governments adopt policies for implementing cloud services in the region. For instance, the Saudi Arabian government implemented the Cloud first policy to adopt cloud services in the region.

d) Telecom operators such as Saudi Telecom Company (stc), Mobily, Zain, Atlas, Sirius Telecom, Ooredoo, Nokia, Ericsson, and Vodafone are the major companies that deploy 5G connectivity in the GCC data center market.

e) In the GCC region, around five submarine cables are currently under development. In terms of existing submarine cables, United Arab Emirates has the largest network of Submarine cables, with more than 15 submarine cables connected.

DRIVING FACTORS FOR AREA IN THE REGION

a) The government initiatives for developing the GCC data center market include the steps taken to reduce the price of the land to promote investment in the country. For instance, the Oman government reduce the cost of the land to facilitate the investment of the data centers in the country.

b) The presence of industrial parks, the availability of land, and the government's support motivate the operators to develop facilities in GCC countries. For instance, the Government of Bahrain announced the launching of its first data center park, which includes the development of its first data center by stc Bahrain through collaboration with the ministry of transport and Telecommunications.

c) The majority of the GCC countries have the availability of Free Trade Zones (FTZs). For instance, Oman has free trade zones such as the Al Mazunah Free Zone, Salalah Free Zone, Sohar Free Zone, and Duqm SEZ. These zones provide multiple benefits to investors, including corporate tax exemption, full exemption of import and export taxes, and local labor recruitment.

DRIVING FACTORS OF THE POWER CAPACITY IN THE REGION

a) In terms of renewable energy, GCC countries produce renewable energy majorly from solar, geothermal, and wind energy sources & aim to be carbon neutral. For instance, the UAE announced its plan to achieve net-zero emissions by 2050 with an investment of over USD 160 billion towards renewable energy.

b) The GCC countries make initiatives for the development of renewable energy. For instance, the Bahrain government took National Energy Efficiency Action Plan (NEFAP), and the National Renewable Energy Action Plan (NREAP) was formed to increase the renewable energy addition by 10% in 2035.

c) In addition, the GCC region is witnessing a rise in investments in solar parks and renewable energy sources, which facilitate increasing renewable energy usage during the forecasted period. For instance, Shagaya renewable-energy park plans to expand its generation capacity of 4 GW by developing concentrated solar power (CSP) plants, solar PV farms, and wind farms by 2027.

d) The region also witnessed the power purchase agreement for powering the data centers. For instance, Khazna Data Centers formed a new Joint Venture (JV) with BEEAH Digital and planned to build a new 9 MW data center that will likely be powered by solar power.

e) In terms of IT load, Saudi Arabia is dominating the GCC data center market with the addition of IT load by upcoming facilities during the forecast period. The UAE, Qatar, Oman, Kuwait, and Bahrain follow Saudi Arabia.

SUPPLY & DEMAND IN THE GCC DATA CENTER MARKET

a) Government support and initiatives in digitalization are expected to boost the GCC data center market. For instance, the Arab League Digital Economy Federation (AFDE) signed a Memorandum of Understanding (MoU) with ATDXT, a UAE-based digital transformation company, to build a new regional facility to promote digital transformation across the Gulf region.

b) The UAE is the most advanced technology market among GCC countries in the GCC region due to the presence of two smart cities, such as Abu Dhabi and Dubai, which drives the demand for data center investments.

c) The expansion of cloud regions by hyperscale operators and internet service providers is fuelling the region's significant demand for data center investments.

d) The major colocation service providers in the GCC data center market include Ooredoo, Khazna Data Centers, Equinix, Gulf data hub, Zajil Telecom, Moro Hub, Oman Data Park, Mezza, Etisalat, and Saudi Telecom Company (stc). In addition, the region is also witnessing investments from new entrants such as ZeroPoint DC, EDGNEX, and Quantum Switch.

e) The migration of the on-premises data centers to colocation is increasing in the GCC region. For instance, the Abu Dhabi Accountability Authority (ADAA) was the first government entity to migrate its workloads from the on-premises data center to the G42 (Group 42) cloud.

f) In the GCC region, several sectors, such as BFSI, healthcare, education, hospitality, government, and transport, have observed data migration to the cloud. For instance, the educational institutions in the GCC region migrated their core applications, such as Student Information System (SIS) and Correspondence Management System (CMS), to the AWS cloud.

WHY SHOULD YOU BUY THIS RESEARCH?
  • Market size available in the investment, area, power capacity, and GCC market revenue.
  • Assess the revenue share between retail and wholesale colocation across the GCC region.
  • Assessment of the data center construction cost breakup across the GCC region.
  • Study of the macroeconomic and microeconomic factors across the GCC region.
  • An assessment of the data center investment in the GCC region by the data center operators.
  • Investments in the area (square feet) and power capacity (MW) across locations in the GCC region.
  • A detailed study of the existing GCC data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
  • Snapshot of existing and upcoming third-party data center facilities in the GCC market.
a) Facilities Covered (Existing): 78
b) Facilities Identified (Upcoming): 44
c) Coverage: 6 Countries
d) Existing vs. Upcoming (Area)
e) Existing vs. Upcoming (IT Load Capacity)
  • The GCC market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
  • A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
  • Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
  • A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

Major Vendors

IT Infrastructure Providers

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Fujitsu
  • Hewlett Packard Enterprise
  • Hitachi Vantara
  • Huawei Technologies
  • IBM
  • Juniper Networks
  • Lenovo
  • NetApp
  • Oracle

Data Center Construction Contractors & Sub-Contractors

  • AECOM
  • Al Latifia Trading & Contracting
  • Aldar Properties
  • Arup
  • Ashi & Bushnag
  • Atkins
  • Capitoline
  • Dar
  • DC PRO BV
  • Direct Services
  • Edarat Group
  • EGEC
  • Egis
  • HATCO
  • HHM Building Contracting
  • Hill International
  • ICS Nett
  • INT’LTEC Group
  • JAMED
  • James L. Williams (JLW)
  • Laing O’Rourke
  • Linesight
  • M+W Group
  • Mace
  • Marafie Group
  • McLaren Construction Group
  • Red Engineering
  • RW Armstrong
  • SANA Creative Systems
  • Specialist Technical Services (STS Group)
  • Turner & Townsend

Support Infrastructure Providers

  • ABB
  • Airedale
  • Alfa Laval
  • Canovate
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Enrogen
  • Envicool
  • Grundfos
  • Honeywell International
  • Johnson Controls
  • Legrand
  • Mitsubishi Electric
  • Rittal
  • Rolls-Royce
  • STULZ
  • Schneider Electric
  • Siemens
  • Vertiv

Data Center Investors

  • Amazon Web Services (AWS)
  • Batelco
  • Etisalat (e&)
  • Equinix
  • Gulf Data Hub
  • Google
  • Khazna Data Centers
  • MEEZA
  • Mobily
  • Moro Hub
  • Oman Data Park
  • Ooredoo
  • Saudi Telecom Company (stc)
  • Tencent Cloud
  • Zain
  • Zajil Telecom

New Entrants

  • EDGNEX
  • Quantum Switch
  • ZeroPoint DC

EXISTING VS. UPCOMING DATA CENTERS

  • Existing Facilities in the region (Area and Power Capacity)
  • UAE
  • Saudi Arabia
  • Bahrain
  • Oman
  • Kuwait
  • Qatar
  • List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the GCC data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

  • IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
  • Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
  • Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
  • Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
  • General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
  • Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
  • Geography
  • UAE
  • Saudi Arabia
  • Bahrain
  • Oman
  • Kuwait
  • Qatar

KEY QUESTIONS ANSWERED

1. How big is the GCC data center market?
2. What is the growth rate of the GCC data center market?
3. How many data centers have been identified in the GCC region?
4. What are the driving factors for the GCC data center market?
5. Who are the key investors in the GCC data center market?
Frequently Asked Questions about the GCC Data Center Market

What is the estimated value of the GCC Data Center Market?

The GCC Data Center Market was estimated to be valued at $3.44 Billion in 2022.

What is the growth rate of the GCC Data Center Market?

The growth rate of the GCC Data Center Market is 8.1%, with an estimated value of $5.5 Billion by 2028.

What is the forecasted size of the GCC Data Center Market?

The GCC Data Center Market is estimated to be worth $5.5 Billion by 2028.

Who are the key companies in the GCC Data Center Market?

Key companies in the GCC Data Center Market include Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara and IBM.

Table of Contents

1. Existing & Upcoming Third-Party Data Centers in Gcc
1.1. Historical Market Scenario
1.2. 75+ Unique Data Center Properties
1.3. Data Center It Load Capacity
1.4. Data Center White Floor Area Space
1.5. Existing Vs Upcoming Data Center Capacity by Countries
1.6. Countries Covered
1.6.1. Uae
1.6.2. Saudi Arabia
1.6.3. Bahrain
1.6.4. Oman
1.6.5. Kuwait
1.6.6. Qatar
1.7. List of Upcoming Data Center Facilities

2. Investment Opportunities in Gcc
2.1. Investment Opportunities in Gcc
2.2. Investment by Area
2.3. Investment by Power Capacity

3. Market Dynamics
3.1. Market Drivers
3.2. Market Trends
3.3. Market Restraints

4. Market Segmentation
4.1. It Infrastructure: Market Size & Forecast
4.2. Electrical Infrastructure: Market Size & Forecast
4.3. Mechanical Infrastructure: Market Size & Forecast
4.4. General Construction Services: Market Size & Forecast

5. Tier Standard Investment
5.1. Tier I & Ii
5.2. Tier Iii
5.3. Tier Iv

6. Geography Segmentation
6.1. Uae
6.1.1. Microeconomic & Macroeconomic Factors for the Uae Market
6.1.2. Investment Opportunities in Uae
6.1.3. Investment by Area
6.1.4. Investment by Power Capacity
6.2. Saudi Arabia
6.2.1. Microeconomic & Macroeconomic Factors for Saudi Arabia Market
6.2.2. Investment Opportunities in Saudi Arabia
6.2.3. Investment by Area
6.2.4. Investment by Power Capacity
6.3. Bahrain
6.3.1. Microeconomic & Macroeconomic Factors for Bahrain Market
6.3.2. Investment Opportunities in Bahrain
6.3.3. Investment by Area
6.3.4. Investment by Power Capacity
6.4. Oman
6.4.1. Microeconomic & Macroeconomic Factors for Oman Market
6.4.2. Investment Opportunities in Oman
6.4.3. Investment by Area
6.4.4. Investment by Power Capacity
6.5. Kuwait
6.5.1. Microeconomic & Macroeconomic Factors for Kuwait Market
6.5.2. Investment Opportunities in Kuwait
6.5.3. Investment by Area
6.5.4. Investment by Power Capacity
6.6. Qatar
6.6.1. Microeconomic & Macroeconomic Factors for Qatar Market
6.6.2. Investment Opportunities in Qatar
6.6.3. Investment by Area
6.6.4. Investment by Power Capacity

7. Key Market Participants
7.1. It Infrastructure Providers
7.2. Construction Contractors
7.3. Support Infrastructure Providers
7.4. Data Center Investors
7.5. New Entrants

8. Appendix
8.1. Market Derivation
8.2. Quantitative Summary

Companies Mentioned

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Fujitsu
  • Hewlett Packard Enterprise
  • Hitachi Vantara
  • Huawei Technologies
  • IBM
  • Juniper Networks
  • Lenovo
  • NetApp
  • Oracle
  • AECOM
  • Al Latifia Trading & Contracting
  • Aldar Properties
  • Arup
  • Ashi & Bushnag
  • Atkins
  • Capitoline
  • Dar
  • DC PRO BV
  • Direct Services
  • Edarat Group
  • EGEC
  • Egis
  • HATCO
  • HHM Building Contracting
  • Hill International
  • ICS Nett
  • INT’LTEC Group
  • JAMED
  • James L. Williams (JLW)
  • Laing O’Rourke
  • Linesight
  • M+W Group
  • Mace
  • Marafie Group
  • McLaren Construction Group
  • Red Engineering
  • RW Armstrong
  • SANA Creative Systems
  • Specialist Technical Services (STS Group)
  • Turner & Townsend
  • ABB
  • Airedale
  • Alfa Laval
  • Canovate
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Enrogen
  • Envicool
  • Grundfos
  • Honeywell International
  • Johnson Controls
  • Legrand
  • Mitsubishi Electric
  • Rittal
  • Rolls-Royce
  • STULZ
  • Schneider Electric
  • Siemens
  • Vertiv
  • Amazon Web Services (AWS)
  • Batelco
  • Etisalat (e&)
  • Equinix
  • Gulf Data Hub
  • Google
  • Khazna Data Centers
  • MEEZA
  • Mobily
  • Moro Hub
  • Oman Data Park
  • Ooredoo
  • Saudi Telecom Company (stc)
  • Tencent Cloud
  • Zain
  • Zajil Telecom
  • EDGNEX
  • Quantum Switch
  • ZeroPoint DC

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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