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GCC DATA CENTER MARKET SIZE WAS VALUED AT USD 3.44 BILLION IN 2022 AND IS EXPECTED TO REACH USD 5.50 BILLION BY 2028, GROWING AT A CAGR OF 8.14% DURING 2022-2028

The GCC Data Center Market Report Includes Size in Terms of

  • IT Infrastructure: Servers, Storage Systems and Network Infrastructure
  • Electrical Infrastructure: UPS Systems, Generators, Switches & Switchgears, PDUs, and Other Electrical Infrastructure
  • Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure
  • Cooling Systems: CRAC and CRAH Units, Chillers Units, Cooling Towers, Condensers, and Dry Coolers, and Other Cooling Units
  • General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression, Physical Security, and Data Center Infrastructure Management (DCIM)
  • Tier Standard: Tier I & Tier II, Tier III, and Tier IV
  • Geography: UAE, Saudi Arabia, Bahrain, Oman, Kuwait, and Qatar

Get Insights on 78 Existing Data Centers and 44 Upcoming Facilities across the GCC

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Most Exhaustive Report

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178 Pages

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21 Tables

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25 Charts

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1 Regions

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6 Countries

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85 Companies

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7 Market Segment

GCC DATA CENTER MARKET REPORT SCOPE

Report Attribute Details
Market Size (2028) USD 5.50 Billion
Market Size (2022) USD 3.44 Billion
CAGR (2022-2028) 8.14%
MARKET SIZE -AREA (2028) 1.91 million sq. Feet
MARKET SIZE - POWER CAPACITY(2027) 370 MW
HISTORIC YEAR 2021-2022
BASE YEAR 2022
FORECAST YEAR 2023-2028

MARKET OUTLOOK

The GCC data center market size will witness investments of USD 5.50 billion by 2028, growing at a CAGR of 8.14% from 2022-2028. The region is currently a very active data center investment region, with UAE and Saudi Arabia leading the growth. Investment in the GCC countries is increasing due to submarine cable connectivity due to proximity markets such as APAC and Europe. For instance, Saudi Arabia has the highest number of submarine cable connectivity due to its location, which can connect significant regions worldwide. The presence of smart cities in the region also drives data center investments. For instance, the NEOM project in Saudi Arabia is under development as a part of Crown Prince Mohammed bin Salman’s Vision 2030, which will also comprise the facility development under a joint venture firm ZeroPoint DC.

DRIVING FACTORS FOR INVESTMENT IN THE REGION

  • 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.
  • 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.
  • 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.
  • 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.
  • 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

  • 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.
  • 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.
  • 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

  • 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.
  • 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.
  • 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.
  • 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.
  • 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

  • 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.
  • 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.
  • The expansion of cloud regions by hyperscale operators and internet service providers is fuelling the region's significant demand for data center investments.
  • 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.
  • 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.
  • 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?

  • 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.
    • Facilities Covered (Existing): 78
    • Facilities Identified (Upcoming): 44
    • Coverage: 6 Countries
    • Existing vs. Upcoming (Area)
    • 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.

VENDOR LANDSCAPE

  • IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, and 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), and 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, and 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, and Zajil Telecom
  • New Entrants: EDGNEX, Quantum Switch, and 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 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:

  • 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

Frequently Asked Questions

How big is the GCC data center market?

The GCC data center market size is expected to witness an investment of USD 5.50 billion by 2028 from USD 3.44 billion in 2022.

What is the growth rate of the GCC data center market?

The GCC data center market is growing at a CAGR of 8.14% from 2022 to 2028.

How many data centers have been identified in the GCC region?

Around 78 existing and around 44 upcoming data centers across the GCC countries.

What are the driving factors for the GCC data center market?

The driving factors for the GCC data center market include digitalization, adoption of cloud-based services, 5G network connectivity deployment, adoption of big data & IoT solutions, and sub-sea & inland cable connectivity.

Who are the key investors in the GCC data center market?

Some key investors in the GCC data center market include Equinix, Khazna Data Centers, Gulf Data Hub, Group 42 (Khazna Data Centers), Moammar Information Systems(MIS), Ooredoo, Quantum Switch, Saudi Telecom Company (stc), ZeroPoint DC, and ZEUUS

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The GCC data center market size is estimated to reach USD 5.50 billion by 2028, growing at a CAGR of 8.14% from 2022 to 2028.

The following factors are likely to contribute to the growth of the GCC data center market during the forecast period:

  • High Adoption of Cloud Services
  • Growth in Submarine and Inland Cable Connectivity
  • Big Data & IoT Technology driving Data Center Investments
  • On-Premise Data Center to the Colocation Facilities

Base Year: 2022

Forecast Year: 2023-2028

The report considers the present scenario of the GCC data center market and its market dynamics for 2023−2028. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the market.  

The report includes the investment in the following areas: 

  • IT Infrastructure
    • Servers
    • Storage Systems
    • Network Infrastructure
  • Electrical Infrastructure
    • UPS Systems
    • Generators
    • Switches & Switchgears
    • PDUs
    • Other Electrical Infrastructure
  • Mechanical Infrastructure
    • Cooling Systems
    • Racks
    • Other Mechanical Infrastructure
  • Cooling Systems
    • CRAC and CRAH Units
    • Chillers Units
    • Cooling Towers, Condensers, and Dry Coolers
    • Other Cooling Units
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Engineering & Building Design
    • Fire Detection & Suppression
    • 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

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 Entrants

  • EDGNEX
  • Quantum Switch
  • ZeroPoint DC
  1. Existing & Upcoming Third-Party Data Centers in GCC
    • Historical Market Scenario
    • 75+ Unique Data Center Properties
    • Data Center IT Load Capacity
    • Data Center White Floor Area Space
    • Existing Vs Upcoming Data Center Capacity by Countries
    • Countries Covered
      • UAE
      • Saudi Arabia
      • Bahrain
      • Oman
      • Kuwait
      • Qatar
    • List of Upcoming Data Center Facilities
  2. Investment Opportunities in GCC
    • Investment Opportunities in GCC
    • Investment by Area
    • Investment by Power Capacity
  3. Market Dynamics
    • Market Drivers
    • Market Trends
    • Market Restraints
  4. Market Segmentation
    • IT Infrastructure: Market Size & Forecast
    • Electrical Infrastructure: Market Size & Forecast
    • Mechanical Infrastructure: Market Size & Forecast
    • General Construction Services: Market Size & Forecast
  5. Tier Standard Investment
    • Tier I & II
    • Tier III
    • Tier IV
  6. Geography Segmentation
    • UAE
      • Microeconomic & Macroeconomic Factors for the UAE Market
      • Investment Opportunities in UAE
      • Investment by Area
      • Investment by Power Capacity
    • Saudi Arabia
      • Microeconomic & Macroeconomic Factors for Saudi Arabia Market
      • Investment Opportunities in Saudi Arabia
      • Investment by Area
      • Investment by Power Capacity
    • Bahrain
      • Microeconomic & Macroeconomic Factors for Bahrain Market
      • Investment Opportunities in Bahrain
      • Investment by Area
      • Investment by Power Capacity
    • Oman
      • Microeconomic & Macroeconomic Factors for Oman Market
      • Investment Opportunities in Oman
      • Investment by Area
      • Investment by Power Capacity
    • Kuwait
      • Microeconomic & Macroeconomic Factors for Kuwait Market
      • Investment Opportunities in Kuwait
      • Investment by Area
      • Investment by Power Capacity
    • Qatar
      • Microeconomic & Macroeconomic Factors for Qatar Market
      • Investment Opportunities in Qatar
      • Investment by Area
      • Investment by Power Capacity
  1. Key Market Participants
    • IT Infrastructure Providers
    • Construction Contractors
    • Support Infrastructure Providers
    • Data Center Investors
    • New Entrants
  2. Appendix
    • Market Derivation
    • Quantitative Summary

Exhibit 1 Third-Party Data Centers Snapshot

Exhibit 2 Third-Party Data Center Snapshot by Countries

Exhibit 3 Data Center Market Size & Forecast by Investment 2022−2028 ($ Million)

Exhibit 4 Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 5 Data Center Market Size & Forecast by Power Capacity 2022−2028 (MW)

Exhibit 6 Market Size & Forecast by IT Infrastructure 2022−2028 ($ Million)

Exhibit 7 Market Size & Forecast by Electrical Infrastructure 2022−2028 ($ Million)

Exhibit 8 Market Size & Forecast by Mechanical Infrastructure 2022−2028 ($ Million)

Exhibit 9 Market Size & Forecast by Cooling Systems 2022−2028 ($ Million)

Exhibit 10 Market Size & Forecast by General Construction 2022−2028 ($ Million)

Exhibit 11 Market Size & Forecast by Tier Standards 2022−2028 ($ Million)

Exhibit 12 UAE Data Center Market Size & Forecast by Investment 2022−2028 ($ Million)

Exhibit 13 UAE Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 14 UAE Data Center Market Size & Forecast by Power Capacity 2022−2028 (MW)

Exhibit 15 Saudi Arabia Data Center Market Size & Forecast by Investment 2022−2028 ($ Million)

Exhibit 16 Saudi Arabia Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 17 Saudi Arabia Data Center Market Size & Forecast by Power Capacity 2022−2028 (MW)

Exhibit 18 Bahrain Data Center Market Size & Forecast by Investment 2022−2028 ($ Million)

Exhibit 19 Bahrain Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 20 Bahrain Data Center Market Size & Forecast by Power Capacity 2022−2028 (MW)

Exhibit 21 Oman Data Center Market Size & Forecast by Investment 2022−2028 ($ Million)

Exhibit 22 Oman Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 23 Oman Data Center Market Size & Forecast by Power Capacity 2022−2028 (MW)

Exhibit 24 Kuwait Data Center Market Size & Forecast by Investment 2022−2028 ($ Million)

Exhibit 25 Kuwait Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 26 Kuwait Data Center Market Size & Forecast by Power Capacity 2022−2028 (MW)

Exhibit 27 Qatar Data Center Market Size & Forecast by Investment 2022−2028 ($ Million)

Exhibit 28 Qatar Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 29 Qatar Data Center Market Size & Forecast by Power Capacity 2022−2028 (MW)

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

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