GCC’s data center market is expected grow at a CAGR 8.14% between 2022 and 2028.

FACTORS THAT INVOLVEMENT IN THE REGION DRIVE. a) Increased demand for these facilities is due to the existence of smart cities, 5G, its applications, as well as the adoption of artificial intelligence (cloud-based) services.

New York, Jan. 12, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “GCC Data Center Market – Investment Analysis & Growth Opportunities 2023-2028” – https://www.reportlinker.com/p05894599/?utm_source=GNW

b) Cloud-based service adoption in the region is increasing, leading to the establishment cloud regions by major cloud service provider such as Microsoft, Tencent cloud or Oracle, Amazon Web Services and Alibaba Cloud. Microsoft Azure has opened its Qatar cloud region, a global data center facility.
c) As governments implement policies to implement cloud services in the region, the region is seeing the adoption of cloud services. Saudi Arabia’s government, for instance, implemented the Cloud first policy in order to adopt cloud services within the region.
d) Major telecom operators in the GCC are Ooredoo and Nokia, Ericsson and Vodafone.
e) Five submarine cables are under construction in the GCC region. United Arab Emirates boasts the largest network of submarine cables with over 15 connected.

FACTORS TO DRIVE IN A REGION

a) Government initiatives to develop the GCC data centre market include steps taken to lower the cost of land in order to encourage investment. To facilitate investment in data centers, Oman’s government has reduced the price of land.
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 example, the Government of Bahrain has announced the opening of its first data centre park. It includes the development of its very first data center by stc Bahrain with collaboration from the ministry of transport and Telecommunications.
c) Most GCC countries have access to Free Trade Zones (FTZs). Oman is one example of a country that has free trade zones like the Al Mazunah Free Zone (Sallah Free Zone), Sohar Free Zone (Sohar Free Zone) and Duqm SEZ. These zones offer multiple benefits for investors: corporate tax exemption, full exclusion of import and export taxes, local labor recruitment, and tax exemption.

FACTORS THAT AFFECT 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. The UAE, for example, announced that it would invest over USD 160 million in renewable energy to reach net-zero emission by 2050.
b. The GCC countries initiate the development of renewable energies. The National Energy Efficiency Action Plan was developed by the Bahrain government. It also created the National Renewable Energy Action Plan to increase renewable energy generation by 10% by 2035.
c) Additionally, investments in renewable energy sources and solar parks are increasing in the GCC region. This will allow for an increase in renewable energy consumption over the forecasted time. Shagaya’s renewable-energy park, for example, plans to increase its 4 GW generation capacity by developing solar PV farms, concentrated solar power (CSP), and wind farms by 2027.
d. The power purchase agreement was also signed for the power supply of the data centers. Khazna Data Centers and BEEAHDigital formed a joint venture (JV) to build a new 9MW data center, which will be likely powered by solar power.
e. Saudi Arabia leads the GCC’s data center market in IT load. The forecast period will see an increase in IT load from upcoming facilities. Saudi Arabia is followed closely by Qatar, Oman Kuwait and Kuwait.

SUPPLY & DEMAND IN THE GCC DATA CENTER MARKET

GCC’s digitalization efforts and government support are expected to increase the market for data centers. To promote digital transformation throughout the Gulf region, ATDXT, a UAE-based company for digital transformation, and the Arab League Digital Economy Federation (AFDE), signed a Memorandum of Understanding.
b. The UAE is the GCC’s most advanced technology market due to its two smart cities Abu Dhabi (and Dubai) which drive the demand for data center investment.
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) Ooredoo and Khazna Data Centers are the major colocation service providers in GCC’s data center market. The region is also seeing investments from new entrants like ZeroPoint DC and EDGNEX.
e. The GCC region is seeing an increase in colocation and migration from on-premises data center to colocation. Abu Dhabi Accountability Authority was, for example, the first to migrate its workloads to the G42 (Group 42), cloud.
f) Data migration to the cloud has been observed in the GCC region by several sectors such as BFSI and healthcare. GCC’s educational institutions have migrated their core applications to AWS, including Correspondence Management System and Student Information System (SIS).

WHY SHOULD THIS RESEARCH BE BUYED?

• Market size available in the investment, area, power capacity, and GCC market revenue.
• Assess the revenue share between retail and wholesale colocation across the GCC region.
• Assessment of the data center construction cost breakup across the GCC region.
• Study of the macroeconomic and microeconomic factors across the GCC region.
• An assessment of the data center investment in the GCC region by the data center operators.
• Investments in the area (square feet) and power capacity (MW) across locations in the GCC region.
• A detailed study of the existing GCC data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in the GCC market.
a) Facilities (Existing Coverage): 78
b) Facilities Identified: 44
c) 6 Countries Coverage
d) Existing vs. Upcoming (Area)
e) Existing vs. Upcoming (IT Load Capacity)
• The GCC market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDORLANDSCAPE

Major Vendors

IT Infrastructure Providers

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

Data Center Construction Contractors & Sub-Contractors

• AECOM
• Al Latifia Trading & Contracting
• Aldar Properties
• Arup
• Ashi & Bushnag
• Atkins
• Capitoline
• Dar
• DC PRO BV
• Direct Services
• Edarat Group
• EGEC
• Egis
• HATCO
• HHM Building Contracting
• Hill International
• ICS Nett
• INT’LTEC Group
• JAMED
• James L. Williams (JLW)
• Laing O’Rourke
• Linesight
• M+W Group
• Mace
• Marafie Group
• McLaren Construction Group
• Red Engineering
• RW Armstrong
• SANA Creative Systems
• Specialist Technical Services (STS Group)
• Turner & Townsend

Support Infrastructure Providers

• ABB
• Airedale
• Alfa Laval
• Canovate
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• Enrogen
• Envicool
• Grundfos
• Honeywell International
• Johnson Controls
• Legrand
• Mitsubishi Electric
• Rittal
• Rolls-Royce
• STULZ
• Schneider Electric
• Siemens
• Vertiv

Data Center Investors

• Amazon Web Services (AWS)
• Batelco
• Etisalat (e&)
• Equinix
• Gulf Data Hub
• Google
• Khazna Data Centers
• MEEZA
• Mobily
• Moro Hub
• Oman Data Park
• Ooredoo
• Saudi Telecom Company (stc)
• Tencent Cloud
• Zain
• Zajil Telecom

New Entry

• EDGNEX
• Quantum Switch
• ZeroPoint DC

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
• UAE
• Saudi Arabia
• Bahrain
• Oman
• Kuwait
• Qatar
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE
This report analyzes the GCC’s data center market share. The report provides an in-depth analysis of existing and planned facilities, investments in IT and electrical infrastructures, as well as tier standards. It also discusses investment estimates and market size for different segments. Segmentation includes:

• IT Infrastructure
• Servers
• Storage Systems
• Network Infrastructure

• Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure

• Mechanical Infrastructure
• Cooling Systems
• Racks
• Other Mechanical Infrastructure

• Cooling Systems
• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Other Cooling Units

• General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression Systems
• Physical Security
• Data Center Infrastructure Management (DCIM)

• Tier Standard
• Tier I & Tier II
• Tier III
• Tier IV

• Geography
• UAE
• Saudi Arabia
• Bahrain
• Oman
• Kuwait
• Qatar

KEY QUESTIONS ANSWERED

1. How big is the GCC market for data centers?
2. What is the growth of the GCC’s data center market?
3. Which data centers are there in the GCC?
4. What are the key factors driving the GCC data centre market?
5. Who are some of the top investors in the GCC’s data center market?
The full report is available here: https://www.reportlinker.com/p05894599/?utm_source=GNW

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