Middle East Data Center Market Landscape 2023-2028: Global Support Infrastructure Providers and Local Investors Playing a Key Role in the Market’s Development – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–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
- 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/j3h5ot
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