PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1181658
PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1181658
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?
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)
VENDOR LANDSCAPE
Major Vendors
IT Infrastructure Providers
Data Center Construction Contractors & Sub-Contractors
Support Infrastructure Providers
Data Center Investors
New Entrants
EXISTING VS. UPCOMING DATA CENTERS
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:
KEY QUESTIONS ANSWERED
LIST OF TABLES
Table 1 List of Upcoming Data Center Projects
Table 2 Data Center Site Selection Criteria
Table 3 Overall Market Size & Forecast 2022-2028
Table 4 Market Size & Forecast by Infrastructure 2022-2028 ($ Million)
Table 5 Market Size & Forecast by IT Infrastructure 2022-2028 ($ Million)
Table 6 Market Size & Forecast by Electrical Infrastructure 2022-2028 ($ Million)
Table 7 Market Size & Forecast by Mechanical Infrastructure 2022-2028 ($ Million)
Table 8 Market Size & Forecast by Cooling Systems 2022-2028 ($ Million)
Table 9 Market Size & Forecast by General Construction 2022-2028 ($ Million)
Table 10 Market Size & Forecast by Tier Standards 2022-2028 ($ Million)
Table 11 UAE Market Size & Forecast 2022-2028
Table 12 Saudi Arabia Market Size & Forecast 2022-2028
Table 13 Bahrain Market Size & Forecast 2022-2028
Table 14 Oman Market Size & Forecast 2022-2028
Table 15 Kuwait Market Size & Forecast 2022-2028
Table 16 Qatar Market Size & Forecast 2022-2028