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GCC Data Center Market - Investment Analysis and Growth Opportunities 2020-2025

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Last updated: 1 May 2020 Update History

Report Pages: 100

Partner Publisher: Arizton Advisory and Intelligence

Analyst: Faizan Akhtar

Executive Summary

UAE and Saudi Arabia are the Major Contributors in Data Center Market in GCC

The data center market in GCC is expected to grow at a CAGR of over 3% during the period 2019-2025. Managed services continue to dominate the GCC data center services market, where colocation has gaining increased traction in the last two years. Hyperscale data center providers contribute to market growth through cloud investments in GCC countries that include Oracle, AWS, IBM, and Microsoft. The UAE and Saudi Arabia are the major contributors to the market. Bahrain, Kuwait, and Oman are in the nascent growth stage.

According to the YouGov survey, 88% IT decision makers in the UAE decided to increase their cloud spend in 2019. Stringency in data protection laws, which secure the user’s personal data stored at other locations, is likely drive the market. In 2019, Saudi Arabia revised its cloud computing regulatory framework. The average rack power density is 3-5 KW, which is expected to grow to 8-10 kW by 2025 across GCC data center market. There is a rising contribution from the increased deployment in IoT, AI, and machine learning workloads.

What is the Impact of the Current COVID-19 Pandemic in the GCC Market?

Construction projects in GCC countries have not been completely halted after the outbreak of COVID-19. In the UAE, banks are helping contractors to release their delayed payments. Among GCC countries, the impact is moderate.

What are the Key Factors Attracting Investments in GCC?

The market witnessed the construction of over 5 new projects in 2019. A significant investment is expected in data center projects by 2025. Initiatives such as Saudi Vision 2030, Dubai Vision 2021, and New Kuwait Vision 2035 are likely to aid in the growth of cloud, big data, and IoT services in the market.

What Business Intelligence does this Report Provide?

The report provides GCC data center investments in terms of area (square feet) and power capacity (MW) in major cities in the country. An in-depth analysis of the impact of the COVID-19 on the GCC data center market is included in the report.

Furthermore, the report also includes a detailed analysis of the colocation industry in GCC, and retail & wholesale colocation pricing in GCC.

A detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the GCC data center market size during 2020-2025, is included in this exclusive report.

The report further categorizes the GCC data center market into multiple segments and sub-segments with sizing and forecast. The report also profiles prominent investors, construction contractors, and infrastructure vendors in the GCC data center market.

Key Developments

  • Major oil companies in GCC are exploring means to incorporate smart technology in their oilfields. They implement big data and analytics technologies, sensors, and control systems.
  • The data consumption in Saudi Arabia is expected to grow by 30% from 2019 to 2022. This, in turn, is attracting data center investments into the country.
  • Governments in the region use cloud-based platforms to establish new public private partnerships.
  • The growth in artificial intelligence and IoT is likely to develop the demand for edge computing in GCC.
  • Smart city initiatives in countries such as the UAE and Saudi Arabia emphasize the importance of data in improving communication between cities, citizens, automobiles, electronics, and devices.

Key Companies Mentioned in this Report Include

IT Infrastructure Providers – Arista, Atos, Broadcom, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei, IBM, Lenovo, NetApp

Construction Service Providers - ALEC Engineering and Contracting, Atkins, Deerns, Harinsa Qatar, Huawei, ICS Nett, ISG, KAR Group (Khalid Abdulrahim Group), Laing O’Rourke, Linesight, Mclaren Construction Group, Nova Corp, Qatar Site and Power (QSP), Red Engineering, Turner & Townsend

Support Infrastructure Providers – ABB, Caterpillar, Cummins, Eaton, Hitec-Power Protection, Legrand, MTU Onsite Energy, Rittal, Schneider Electric, STULZ, Vertiv

Data Center Investors - Amazon Web Services (AWS), Batelco, Datamount, Equinix, Etisalat, Evoteq, Gulf Data Hub, Khazna, Ooredoo, SAP, Saudi Ministry of Communication & Information Technology

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Paul, Many thanks for your inputs yesterday. You provided a compelling different perspective to our traditional infrastructure focus and this is valuable for our future planning. I also had very favourable feedback from our participants on your involvement.

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