Kuwait Data Center Market - Investment Analysis & Growth Opportunities 2023-2028

MARKET INSIGHTS

The Kuwait data center market size will witness investments of USD 352.3 million by 2028, growing at a CAGR of 10.03% during the forecast period. The region is a growing economy with one of the Middle East's most highly developed and stabilized economies. The economy of Kuwait grew by over 8.7% in the year ended January 2023. Furthermore, the region is an emerging IT hub driven by its Kuwait Vision 2035, which aims to be a “financial and commercial” center in the Middle Eastern region. It is dedicated to achieving its Vision 2035 goals by embracing digital technologies to foster innovation and transform key sectors through smart and digital solutions.

The Kuwait data center market and cloud region have witnessed increased investment from major providers. One of the key factors relating to this is due to the strategic location and excellent connectivity. The government had initiated plans to establish approximately nine smart cities. One of these smart cities, South Saad Al Abdullah City, was under development by a consortium from South Korea. This city was intended to accommodate a population of 25,000 to 45,000 families. Also, Kuwait's Minister of Electricity, Water, and Renewable Energy, Mutlaq Burguba, has stressed the need to speed up efforts to generate at least 15% of the country's electricity from renewable sources by 2023. Such factors show the country’s dedication to using clean energy and greener energy.

KEY HIGHLIGHTS

• Kuwait City is the most preferred location in the region for developing data centers due to their proximity to end-users.
• Among the Gulf Cooperation Council (GCC), Kuwait ranked 2nd regarding the availability of the 5G telecommunications network, with a rate of 33.6%. Ooredoo Kuwait and Zain Kuwait are telecom operators working to deploy commercial 5G services in the region.
• The Kuwait data center market has around four existing submarine cables connecting the Middle East, Africa, and Europe. 2Africa is the upcoming submarine cable connecting Kuwait to other Middle Eastern, African, European, and Asian countries.
• The Kuwait data center industry has the presence of cloud service providers such as Amazon Web Services, Microsoft, Oracle, and Google. For instance, in January 2023, Google planned to develop a new cloud region that provides services to local customers, including the Government of Kuwait and Alshaya Group.
• In Kuwait, Microsoft’s ecosystem and cloud-based services enable technology adoption with large-scale investments, generating around 13,000 new jobs in the country by 2024.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Kuwait colocation market revenue.
• An assessment of the data center investment in Kuwait by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Kuwait 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 Kuwait
  • Facilities Covered (Existing): 06
  • Facilities Identified (Upcoming): 03
  • Coverage: 2+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Kuwait
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• The Kuwait data center 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 industry.

VENDOR LANDSCAPE

• Kuwait has around 06 operational colocation data centers. The major colocation operators in the Kuwait data center market are Ooredoo, Gulf Data Hub, Kuwait Telecommunication Company (stc), and Zajil Telecom.
• Most colocation facilities are being developed according to Tier III standards. According to Uptime Institute, around 10 data center facilities received Tier III certification for construction and design facility by Uptime Institute.
• The Kuwait data center market is witnessing the entry of new colocation operators such as Gulf Data Hub, Agility, Khazna Data Centers, and Zeuus Data Centers, investing in developing around six new data center facilities.
• The demand drivers for colocation services in the region are the primary drivers due to various organizations starting work on cloud platforms, and the cloud is followed by telecom, 5G deployment, and AI.
• Many facilities in Kuwait use diesel generators with N+1 redundancy and have a backup fuel supply that can last more than 24 hours. For instance, Kalaam Telecom’s data center has N+1 redundancy generators with up to 160 hours of backup.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Kuwait City
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Kuwait 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
  • Switches & Switchgear
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • 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

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Jupiter Networks, NetApp, Oracle.
• Data Center Construction Contractors & Sub-Contractors: Aecom, EGEC, Marafie Group, Egis.
• Support Infrastructure Providers: ABB, Airedale International Air Conditioning, Alfa Laval, Caterpillar, Cummins, Eaton, Honeywell International, Johnson Controls, Legrand, Rittal, Schneider Electric, Stulz Vertiv.
• Data Center Investors: Ooredoo, Kuwait Telecommunication Company (stc), Zajil Telecom, Zain
• New Entrants: Gulf Data Hub, Agility, Khazna Data Centers, Zeuus Data Centers.