MARKET OUTLOOK

The UAE data center market size will witness investments of USD 1.91 billion by 2028, growing at a CAGR of 7.34% during the forecast period. The market has witnessed steady growth in investments in big data & IoT solutions by businesses and government organizations. For instance, Etisalat Digital uses NB-IoT technology to enable smart parking solutions for drivers to locate free parking spots in Dubai and Abu Dhabi easily.

The demand for colocation is expected to grow significantly with the growing migration of businesses from on-premise to colocation infrastructure, along with wholesale colocation expected to grow due to an increase in the presence of cloud service providers that will colocate major spaces in the market. In 2022, the market investments were dominated by colocation operators such as Khazna Data Centers and Gulf Data Hub, followed by Equinix. The UAE data center market also has witnessed the entry of a new investor, Quantum Switch, which plans to develop a data center.

The government has taken the initiative to increase the share of renewable energy in the energy mix in the country. For instance, The Energy Strategy 2050 is among the first energy strategy in the UAE which aims to increase the composition of clean and green energy from 25% to 50% in the total energy mix by 2050, majorly driven by solar photovoltaic energy. Further, the UAE has strong fiber connectivity and networking, with investments in submarine cables and internet exchange points growing. Two submarine cables are currently under development in the region.

KEY HIGHLIGHTS

• The UAE data center market is one of the prominent markets in the Middle East region. The market has several driving factors, such as significant digitalization growth, strong fiber connectivity, growing technology adoption, etc.
• The government has started several digitalization initiatives for the country's digital transformation. For instance, the Office of the Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications announced a collaboration with global companies such as Cisco Systems to bring digital transformation to the country.
• The UAE data center market is witnessing growth in adopting cloud services and the growing presence of cloud service providers such as Microsoft, Oracle, Amazon Web Services, and Alibaba Cloud.
• Several telecom operators are deploying 5G services in the country that will drive the demand for edge data centers in the coming years. Telecom operators such as Etisalat (e&) and du are the two main operators that have commercially deployed 5G services
• The UAE data center market has witnessed the establishment of several free trade zones in Dubai, Sharjah, Ajman, Abu Dhabi, and Fujairah that are driving the growth of industrial land availability in the market.
• Regarding power capacity growth, the market is witnessing a major shift toward adopting renewable energy sources. Operators such as Khazna Data Centers and Etisalat also are working o run their data centers on renewable energy sources.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and UAE colocation market revenue.
• An assessment of the data center investment in UAE by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across states in the country.
• A detailed study of the existing UAE data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in UAE
  • Facilities Covered (Existing): 28
  • Facilities Identified (Upcoming): 26
  • Coverage: 5+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in UAE
  • Market Revenue & Forecast (2022-2028)
  • Retail and Wholesale Colocation Pricing
  • Retail vs. Wholesale Colocation Market
• The UAE 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

• The UAE data center market has the presence of several local and global data center operators, such as Gulf Data Hub, Khazna Data Centers, Equinix, CtrlS Datacenters, and others.
• Quantum Switch Tamasuk, a new investor in the UAE data center market, has also entered the market for profitability from the prominent growth opportunities. The rapid increase in investors will increase the competitiveness in the market in terms of colocation space supply in the coming years.
• Operators in the country are also taking several initiatives for sustainable operations. For instance, Khazna Data Centers’ facilities in Abu Dhabi and Dubai use high-temperature water-cooled chiller systems with an option to initiate free cooling.
• In terms of construction contractors, the industry has several local and global construction contractors providing their services. For instance, Group AMANA has provided construction services for the du Data Center in Kizad.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Dubai
  • Abu Dhabi
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the UAE 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 & 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
  • Dubai
  • Abu Dhabi
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NetApp.
• Data Center Construction Contractors & Sub-Contractors: AESG, Aldar Properties, ALEC Engineering and Contracting, Arcadis, Arup, ASU, BG&E, Black & White, Cadd Emirates, Condor Group, Core Emirates, DC PRO Engineering, Dct-gulf (Data Center Technologies), Edarat Group, Group AMANA, HHM Building Contracting, James L. Williams (JLW), Laing O’Rourke, Laith Electra Mechanical, Linesight, M+W Group, mCritical Infrastructure (mCIC), McLaren Construction Group, Meinhardt Group, Middle East Modern Architecture (MEMA), Raghav Contracting, Red Engineering, Rider Levett Bucknall, RW Armstrong, Site & Power DK, STS Group, Sudlows Consulting, Syska Hennessy Group, Telal Engineering & Contracting, Turner & Townsend.
• Support Infrastructure Providers: ABB, Airedale, Alfa Laval, Caterpillar, Chatsworth Products, Cummins, Delta Electronics, Eaton, Envicool, Johnson Controls, Legrand, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv.
• Data Center Investors: CtrlS Datacenters, Equinix, Gulf Data Hub, Injazat, Khazna Data Centers, Morohub, and Pacific Controls.
• New Entrants: Quantum Switch Tamasuk.