Middle East Data Center Market Landscape 2023-2028: Smart City Developments Drive Demand for Advanced Technologies in the Middle East Data Center Market

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Jul 18, 2023, 14:45 ET

DUBLIN, July 18, 2023 /PRNewswire/ -- The "Middle East Data Center Market Landscape 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The Middle East data center market is projected to reach a value of $7.94 billion by 2028 from $4.86 billion in 2022, growing at a CAGR of 8.53% from 2023-2028.

The Middle East data center market is experiencing significant growth, with global support infrastructure providers and local investors playing a crucial role in its development.

Companies like ABB, Airedale, Alfa Laval, Delta Electronics, Cummins, and Caterpillar are among the support infrastructure providers in the industry. Local investors such as Morohub, Gulf Data Hub, and Khazna Data Centers are dominant, while global investors like Google, Microsoft, Equinix, and Tencent also have a presence.

The increasing deployment of 5G networks is driving investments in edge data centers, as Middle Eastern countries aim to adopt digital transformation and facilitate IoT, smart cities, and the fourth industrial revolution. The growth of smart city initiatives further amplifies the demand for advanced technologies and data-driven decision-making. The Middle East data center market is geographically diverse, with markets like the UAE, Saudi Arabia, and Israel leading the way.

Other emerging locations in the region, such as Oman and Qatar, are also experiencing steady investment growth. The IT infrastructure segment, particularly servers and storage, is generating significant revenue, while the electrical infrastructure segment is dominated by investments in UPS systems and generator systems. Construction contractors, both local and global, are actively involved in greenfield developments across the region.

Increase in 5G Deployments Fueling Edge Data Center Investments

Middle Eastern countries are working toward adopting digital transformation to attract foreign investments. 5G network deployment fuels the 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 Tier 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 key role in supporting enterprise digitalization and will drive the adoption of IoT applications.

Some telecom operators in the Middle East data center market have deployed 5G network services; some are in 5G trials. Middle Eastern countries such as the UAE, Saudi Arabia, Oman, Kuwait, Bahrain, and Qatar commercially deployed 5G network services. Turkey, Israel, Jordan, Lebanon, and Iran are other Middle Eastern countries in 5G planning and are yet to deploy commercial services during the forecast period.

Growing Smart City Developments Will Drive the Demand for Advanced Technologies

Smart city initiatives further emphasize the importance of data in improving communication among cities, citizens, automobiles, electronics, and devices. A well-designed smart city allows for data-driven decision-making, newer economic opportunities, and improved infrastructure.

In the Middle East, several companies and governments have taken the initiative to invest in developing smart cities. Middle Eastern countries are driving the adoption of advanced technologies, 5G services, IoT, big data solutions, and digital platforms. In addition, the number of interconnected devices in the region is increasing significantly, with growth in the deployment of subsea and inland cables.

GEOGRAPHICAL ANALYSIS

Regarding geography, the Middle East data center market is dominated by investments in markets such as UAE and Saudi Arabia, which are among the region's most mature markets, followed by Israel.

Several regional emerging locations, such as Oman, Qatar, and others, have witnessed steady data center investment growth. Other regional markets are also expected to witness growth in the coming years, aided by digitalization, technology penetration, connectivity growth, and other factors.

SEGMENTATION INSIGHTS

The Middle East data center market under the IT infrastructure segment generated major revenue from servers as the growth in data generation is fueling the demand for faster processing and efficient servers. This is followed by revenue from storage due to the growing adoption of flash storage among data centers and network infrastructure revenues such as switches with ports of up to 100GbE.

The electrical infrastructure segment in the Middle East data center market is dominated by investments in UPS systems, followed by generator systems that are majorly being adopted by diesel-powered engines.

Several local and global construction contractors exist in the industry, such as AECOM, Aldar Properties, Anel Group, Dar Group, Hill International, etc. The industry is witnessing greenfield developments across several countries aided by ample availability of land resources.

VENDOR LANDSCAPE

IT Infrastructure Providers

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

Prominent Data Center Support Infrastructure

ABB
Airedale
Alfa Laval
Canovate
Caterpillar
Cummins
Delta Electronics
EAE Group
EATON
Envicool
HITEC Power Protection
Johnson Controls
Legrand
Rittal
Rolls-Royce
Schneider Electric
Siemens
STULZ
Vertiv

Prominent Data Center Construction Contractors

AECOM
AlDar Properties
Anel Group
Arup
Ashi & Bushnag
Atkins
Dar Group
DC Pro Engineering
Deerns
Edarat
EGEC
ENMAR Engineering
Harinsa Qatar (HQ)
HATCO
HHM Building Contracting
Hill International
ICS Nett
INT'LTEC
ISG
Laing O'Rourke
Linesight
M+W Group (Exyte)
Mace
Mercury Engineering
McLaren Construction Group
MIS
NDA Group
Prota Engineering
Qatar Site & Power
RED Engineering
RW Armstrong
Sudlows
Telal Engineering & Contracting
Turner & Townsend

Prominent Data Center Investors

Adgar Investments and Development
Amazon Web Services (AWS)
Batelco
Bynet Data Communications
Equinix
EdgeConneX
Future Digital Data Systems (FDDS)
Gulf Data Hub
Google
Khazna Data Centers
Moro Hub
MedOne
MEEZA
Mobily
Microsoft
Oman Data Park
Ooredoo
stc
Turkcell
Turk Telekom
Telehouse
Tencent Cloud

New Entrants

Compass Datacenters
Digital Realty
Infinity
EDGNEX
Global Technical Realty
Quantum Switch
ZeroPoint DC
Serverfarm

SCOPE OF THE REPORT

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 Cooling Technique
Liquid-based Cooling Technique

Segmentation by General Construction

Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Physical Security
Fire Detection & Suppression
DCIM/BMS Solutions

Segmentation by Tier Standard

Tier I & II
Tier III
Tier IV

Segmentation by Geography

Middle East
UAE
Saudi Arabia
Israel
Qatar
Oman
Kuwait
Bahrain
Jordan
Other Middle Eastern Countries

For more information about this report visit https://www.researchandmarkets.com/r/kotjl0

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