DUBLIN--(BUSINESS WIRE)--The "Middle East Data Center Market Landscape 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The Middle East Data Center Market was valued at USD 5.57 billion in 2023, and is expected to reach USD 9.61 billion by 2029, rising at a CAGR of 9.52%.
The Middle East data center market comprises segments like electrical, mechanical, and general construction, the latter of which has many interconnected and interdependent sub-parts. In a region known for its hot climate, cooling systems and techniques are crucial for cooling down data center facilities. Internal software and hardware, such as servers, computing devices, and other equipment, must be cooled as they work continuously to manage millions of data center operations daily.
Data center operators need to ensure that the facility remains operational at all times. Proper power backup facilities, such as UPS systems and generators, are essential. The Middle East data center market uses sustainable energy sources like EcoDiesel, biofuel, natural gas, and other environmentally friendly options to power these backup systems.
The physical security of data centers is also critical. Adopting multifactor authentication systems, perimeter fencing, facial recognition technology, and other such measures have made great strides in that area.
KEY TRENDS
Increase in Usage of Inexhaustible Green Energy Sources
- The UAE, Saudi Arabia, Qatar, Turkey, Bahrain, Jordan, and Kuwait have been working to incorporate renewable energy in their data center facilities for the past few years.
- In November 2023, Equinix opened its third facility in Dubai, the DX3, the largest so far in the region. It would be powered 100% by renewable energy.
- The NEOM Green Hydrogen Project is a groundbreaking initiative that aims to produce green hydrogen on a large scale in the NEOM region of Saudi Arabia. NEOM is a visionary city development project in the country's northwestern part, aspiring to become a leading global hub for innovation and sustainability.
- Oman's Vision 2040 and the National Energy Strategy aim to generate approximately 30% of electricity from renewable energy sources by 2030. These renewable energy projects include two solar IPPs in Manah, 11 solar-diesel hybrid facilities, a wind farm in Dhofar, and Sahim, an initiative to install small solar panels on commercial and residential units.
The Age of Artificial Intelligence
- Governments in the Middle East have taken various policies and initiatives to develop and deploy AI-based technology. The adoption of AI is rising across different fields, including education, healthcare, finance, commerce, and related industries. Countries globally adopt AI for several operations.
- The UAE and Saudi Arabia are two major Middle Eastern countries witnessing the large-scale adoption of AI.
- The government of Oman is implementing AI projects through two programs, Oman 2030 and Vision 2040. These programs aim to provide education and training and develop research facilities for the adoption of AI.
- Two policies, Vision 2035 and New Kuwait 2035, were formulated in Kuwait as part of the AI initiative. This initiative also includes utilizing AI and related technologies to increase job opportunities.
- The government of Bahrain announced the Digital Strategy 2022 to develop AI and its applications. The AI Academy was established in the country as part of this strategy.
5G Deployments & Edge Facilities Gaining Momentum
- Edge data centers are small, decentralized facilities that offer services like computing and storage and are strategically located closer to the end users where data is generated and consumed. Unlike cloud facilities, edge facilities are known to reduce latency and optimize bandwidth, facilitating the deployment of new applications.
- The UAE was the first in the region to offer 5G services by May 2019, followed by Kuwait, Bahrain, and Qatar a few months later in July, and then Saudi Arabia in October of the same year. Israel did it in September 2020, whereas Iran and Oman about a year later in July 2021.
- Middle Eastern countries work toward adopting digital transformation to attract foreign investments. 5G network deployment fuels digital transformation, IoT, smart cities, and the fourth industrial revolution. The rapid investment in 5G technology increases the demand for high-bandwidth internet in Tier II and III cities, thereby leading to the generation of a substantial amount of data, further driving data center development to process the information. 5G network services play a crucial role in supporting enterprise digitalization and will drive the adoption of IoT applications.
- Saudi Arabia has about 11.2 million 5G subscribers as of March 2023, 42.8% of the overall 5G subscriptions in the Middle East region.
- The Telecommunications Regulatory Authority (TRA) plans to reach and achieve 100% 5G coverage in the UAE by 2025.
- In July 2023, Tonomus launched a new facility in the Saudi Arabian cognitive city of Neom. The facility would be a high-capacity, highly efficient data center to facilitate 5G, satellite, and fiber connectivity.
VENDOR LANDSCAPE
- Equinix, center3 (stc), Gulf Data Hub, Mobily, Khazna Data Centers, Ooredoo, and others are among the current significant investors in the Middle East data center market.
- Support infrastructure vendors in the Middle East data center industry, including ABB, Schneider Electric, Siemens, Eaton, Johnson Controls, and Vertiv. These companies have a strong global presence and operate across the Middle East. They operate directly in some prominent countries with existing and ongoing ventures, while in others, they operate through channel partners and distributors, competing with local vendors in their respective countries.
- Notable construction contractors in the Middle East data center market include McLaren Construction Group, HHM Building Contracting, AECOM, ENMAR Engineering, Anel Group, Turner & Townsend, and many others.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 113 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $5.57 Billion |
| Forecasted Market Value (USD) by 2029 | $9.61 Billion |
| Compound Annual Growth Rate | 9.5% |
| Regions Covered | Middle East |
Key IT Infrastructure Providers
- Arista Networks
- Atos
- Broadcom
- Cisco Systems
- Dell Technologies
- Fujitsu
- Hewlett Packard Enterprise
- Hitachi Vantara
- IBM
- Inspur
- Lenovo
- NetApp
Prominent Support Infrastructure
- ABB
- Airedale
- Alfa Laval
- Canovate
- Caterpillar
- Cummins
- Delta Electronics
- EAE Group
- EATON
- Enrogen
- Envicool
- Generac Power Systems
- HITEC Power Protection
- Johnson Controls
- Legrand
- Piller Power Systems
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- STULZ
- Vertiv
Prominent Construction Contractors
- AECOM
- ALEC Data Center Solutions
- Aldar Properties
- Al Latifia Trading & Contracting
- Anel Group
- Arup
- Ashi & Bushnag
- ASU
- Atkins
- Azura Consultancy
- Black & White Engineering
- Capitoline
- Core Emirates
- Dar Group
- DC Pro Engineering
- Deerns
- Edarat
- EGEC
- ENMAR Engineering
- Group AMANA
- Harinsa Qatar
- HATCO
- HHM Building Contracting
- Hill International
- ICS Nett
- INT'LTEC
- ISG
- Juffali Airconditioning, Mechanical, and Electrical Company (JAMED)
- James L. Williams (JLW)
- John Paul Construction
- Laing O'Rourke
- Laith Electro Mechanical
- Linesight
- M+W Group (Exyte)
- Mace
- McLaren Construction Group
- Mercury Engineering
- Middle East Modern Architecture (MEMA)
- MIS
- NDA Group
- Prota Engineering
- Qatar Site & Power
- Raghav Contracting
- RED Engineering
- RW Armstrong
- SANA Creative Systems
- Site & Power DK
- Sudlows
- Telal Engineering & Contracting
- Turner & Townsend
- UBIK
Prominent Data Center Investors
- Adgar Investments and Development
- Amazon Web Services (AWS)
- Batelco
- Bynet Data Communications
- center3 (stc)
- EdgeConneX
- Equinix
- Gulf Data Hub
- Huawei Technologies
- Khazna Data Centers
- MedOne
- MEEZA
- Microsoft
- Mobily
- Moro Hub
- Oman Data Park
- Ooredoo
- Oracle
- Serverfarm
- Telehouse
- TONOMUS (ZeroPoint DC)
- Turkcell
- Turk Telekom
New Entrants
- Agility
- Compass Datacenters
- Digital Realty
- Edgnex Data Centres by DAMAC
- Global Technical Realty
- Quantum Switch Tamasuk
Report Segmentation
Segmentation by Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Segmentation by IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
Segmentation by Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- Power Distribution Units
- Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Segmentation by Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers, and Dry Coolers
- Other Cooling Units
Segmentation by Cooling Techniques
- Air-based
- Liquid-based
Segmentation by General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Physical Security
- Fire Detection & Suppression
- DCIM
Segmentation by Tier Standard
- Tier I & II
- Tier III
- Tier IV
For more information about this report visit https://www.researchandmarkets.com/r/by9egr
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