MENA Data Center Markets 2021-2026: 5G To Grow Edge Data Center Investments, Growing Procurement of Renewable Energy, Submarine Cable Deployment, Smart City Initiatives, All-Flash Storage Solutions

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Jun 03, 2021, 16:45 ET

DUBLIN, June 3, 2021 /PRNewswire/ -- The "Middle East and North Africa (MENA) Data Center Market - Industry Outlook & Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.

The Middle East and North Africa data center market by investment is expected to grow at a CAGR of 7.81% during the period spanning 2020-2026.

The increased commercial 5G network deployment has led to the increased demand for high bandwidth internet in several Middle Eastern Tier II and Tier III cities. Edge data centers will create a decentralized data center model, where hyperscale facilities will connect multiple edge data centers. Saudi Arabia has been a leader in expanding its 5G networks, where telecom companies Zain, Saudi Telcom Company, and MOBILY are significant contributors to the market. Zain provides 5G access across 44 cities, followed by Saudi Telecom Company in 22 cities, and MOBILY in 21 cities.

TAWAL, a Saudi ICT infrastructure company, has partnered with Nokia to provide turnkey services to expand and deploy 5G for TAWAL's infrastructure in Saudi Arabia. Nokia's 5G technology will be added in over 670 4G sites operated by TAWAL across Saudi Arabia. Nokia will also replace existing towers with newer ones in 2021. In January 2021, Zain deployed Phase II of its 5G deployment in Saudi Arabia in collaboration with Infovista, a network infrastructure company, and its radio planning portfolio.

In the UAE, du, a major telecom operator, has partnered with Ericsson to transform its RAN 5G network using Ericsson's Radio System portfolio. Also, Etisalat deployed 5G Fixed Network in homes in the UAE in September 2020. Hence, these deployments will continue to drive innovations in the data center power space, with increased modular infrastructure offerings. In North Africa, governments and telecom operators are working toward deploying 5G in the next few years. Huawei is collaborating with telecommunications companies such as Maroc Telecom, Orange, and Inwi, to roll out 5G network services in Morocco.

Insights by Geography

The UAE and Turkey account for the largest revenue contribution to the MENA data center market share. The adoption of cloud-based services leads to the growth of retail and wholesale colocation services in the region. 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 leads to the generation of a substantial amount of data, further increasing investments in the facilities. The UAE is one of the growing markets for renewable energy products.

The UAE works toward the installation of 42 GW of renewable energy in the country by 2050. Dubai aims to commission a five-part renewable energy project and is currently setting up an 800 MW solar park in the country. All these factors are likely to increase the demand for data center services in the country.

Turkey is one of the emerging data center market, wherein increasing digitization has become a significant driver for data center investment over the last few years. Most investments come from the telecommunications sector due to increasing smartphone users in the country. The market is evolving, and investments are expected to pick up during the forecast period, with contributions from local and global data center providers. Government initiatives, cloud services, and submarine cables will be the prominent drivers for investments in Turkey.

Market Dynamics

Market Opportunities & Trends

5G To Grow Edge Data Center Investments
Growing Procurement Of Renewable Energy
Submarine Cable Deployment & Impact On Data Center Investment
Smart City Initiatives Fueling Data Center Deployments
Rising Adoption Of All-Flash Storage Solutions

Market Growth Enablers

Impact Of COVID-19 On the Data Center Market
Rise in Data Center Investments
Big Data, IOT, And Cloud Driving Data Center Investments
Migration From On-Premises Infrastructure To Colocation & Managed Services
Modular Data Center Development

Market Restraints

Location Constraints for Building Data Center
Lack Of Skilled Workforce
Security Breaches Hindering Data Center Investments

Scope of the Report

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

By Geography

Middle East & Africa

UAE
Saudi Arabia
Turkey
Jordan
Morocco
Egypt
Other Middle East and North African Countries

Competitive Landscape

Key Data Center Critical (IT) Infrastructure Providers

Arista Networks
Atos
Broadcom
Cisco Systems
Dell Technologies
Hewlett Packard Enterprise (HPE)
Huawei Technologies
Juniper Networks
IBM
Lenovo
NetApp

Key Data Center Support Infrastructure Providers

ABB
Caterpillar
Cummins
Eaton
Envicool
Legrand
Rittal
Rolls-Royce Power Systems
Schneider Electric
STULZ
Vertiv Group

Key Data Center Investors

Amazon Web Services (AWS)
Akbank
Batelco
Etisalat Group
Equinix
Gulf Data Hub
Dubai Electricity & Water Authority (DEWA)
N+ONE
Orange
Raya Data Center
Turkcell
Telecom Italia Sparkle
Khazna
Zain

Key Construction Constructors

Arup Group
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)

For more information about this report visit https://www.researchandmarkets.com/r/c07mc2

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