Posted On: 2021-08-05
Telecom & IT sector acquired the largest market revenue share among all the sectors in the overall Middle East data center market – 6Wresearch
Middle East data center market grew significantly during the period of 2017-2019 on account of government initiatives in the region to digitally transform their respective countries such as Saudi Vision 2030, Digital UAE, Digital Oman 2030 and many more. Further, social distancing norms implemented in the Middle East due to Covid-19 pandemic acted as a catalyst in the growth of tele healthcare, e-learning, e-commerce, remote working, and e-governance platforms. Adoption of 5G technology in the region provided the bandwidth needed for the seamless operation of these platforms along with enabling the use of advance technologies such as artificial intelligence, machine learning, blockchain and Internet of Things. These technologies require high computing power and storage space to host and launch several applications and large volume of data, thereby, creating a demand for data center in the region.
According to 6Wresearch, the Middle East Data Center Market revenue size is projected to grow at a CAGR of 12.4% during 2021-2027. Adoption of data driven technologies coupled with ongoing digitization of the economies in the region is expected to generate large volumes of data and would require a secure and robust infrastructure to store, compute and query the data, thereby creating a demand for data center in the region.
According to Eshita Goel, Research Analyst, 6Wresearch, “Cloud data center dominated the Middle East data center market revenues in recent years on account of government initiatives such as Cloud First Policy by Bahrain and Saudi Arabia which encourages public sector migration from traditional data center to cloud-based models. Similarly, Oman has partnered with Oracle’s cloud solutions to migrate 120 government entities to an integrated Government Cloud (G-Cloud) platform. Additionally, the demand for cloud-based services increased in the year 2020, due to pandemic related lockdown restrictions resulted in closure of office establishments, schools, hotels, and other organizations due to which, cloud data center market has experienced a substantial growth as it offers more secure and robust IT infrastructures.
According to Ramit Behl, Research Associate, 6Wresearch, “Within infrastructure types, tier III data center acquired the largest revenue share in 2020 and the same trend is expected to continue in the future on account of its preference by the businesses owing to its lower annual downtime of 1.6 hours compared to annual downtime of tier I and II with 28.8 and 22 hours, respectively. Thus, chances of financial losses caused by maintenance and disruptions in tier III facility are less compared to tier I and tier II. Additionally, majority of upcoming projects in the region are tier III certified. For instance, upcoming data centers by Etisalat and Meeza in UAE and Qatar respectively, are expected to be tier III certified.
According to Dhaval Chaurasia, Research Associate, 6Wresearch, “By Countries, UAE’s data center market is expected to register a highest growth over the forecast period which would be primarily driven by the government’s digitization initiatives such as Digital UAE and Smart Dubai, coupled with increasing adoption of 5G technology. The need for data center in the country has increased significantly over the past few years as government started digitizing all the government and public records along with launching several e-government portals such as UAE Pass, Federal Electronic Network, UAE Makes, National Open Data Portal, among others. The data generated by government’s digital initiatives coupled with rising adoption of advanced technologies would create a demand for data center to safely host data and applications and provide computing power required for these technologies.”
Some of the major companies in Middle East data center market include Amazon Web Services Inc., Cisco System Inc., Equinix Inc., Etisalat, Oman Data Park, Meeza, Ooredoo Q.P.S.C, Injazat Data System LLC and Data Mount.
“Middle East Data Center (2021-2027)” report provides an in-depth analysis with 108 figures and 27 tables, covered in 193 pages. The report estimates and forecast the overall Middle East data center market by types, by infrastructure types, by applications and by countries. The report provides an unbiased and detailed analysis of the ongoing trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.