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