Middle East Data Center Market Outlook and Forecast 2021-2026: Big Data, IoT & Cloud Drive Data Center Investment & Migration From On-Premises Infrastructure To Colocation & Managed Services

Dublin, April 28, 2021 (GLOBE NEWSWIRE) — The “Data Center Market in Middle East – Industry Outlook and Forecast 2021-2026” report has been added to ResearchAndMarkets.com’s offering.

The Middle East data center market by investment is expected to grow at a CAGR of 7% during the period 2020-2026.

The data center market has observed a steady growth due to the outbreak of the COVID-19 pandemic, resulting in heightened access to internet-related services aided by nationwide lockdowns and restrictions. IoT-enabled devices witnessed high acceptance for monitoring and surveillance purposes, especially in the healthcare sector, during the pandemic.

Government agencies have also contributed to the growth of cloud-based services in the Middle East. In Kuwait, the Ministry of Health (MoH), the Central Agency for Information Technology (CAIT), collaborated with Zain to launch an application – Shlonik to monitor citizens that have returned to the country.

The growing adoption of cloud, IoT, big data in the wake of the COVID-19 has increased colocation investments in the region. Cloud, social media, and video conferencing service providers have contributed majorly to data generation. Many enterprises operating in the cloud are migrating to colocation data centers to operate hybrid infrastructure services.

Middle East Data Center Market Segmentation

The Middle East data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography. The Middle East IT infrastructure market expects to grow at a CAGR of over 6% during 2020-2026.

The server market is shifting slowly from rack-based to blade servers to support a high-density operating environment. This is because of the increased usage of IoT, big data analytics, artificial intelligence, and machine learning by enterprises across the Middle Eastern market. Enterprises prefer servers that can reduce space in the data center environment without affecting performance.

The UPS market in the Middle East anticipates to cross USD 89 million during the forecast period. There has a steady rise in the deployment of edge computing; also, colocation operators are investing in the region, which increases the demand for high-capacities UPS in the region. The use of 750-1,500 kVA systems has witnessed high adoption along with less than 500 kVA UPS systems. The adoption of lithium-ion batteries is also likely to increase during the forecast period as the price of these batteries is expected to decline during the forecast period.

Cooling systems, including water-cooled chillers, CRAH, and cooling towers, are installed with N+20 redundancy in the Middle East region. Most facilities in the region design to cool servers via water-based cooling techniques. The growing construction of data centers in the UAE is a key factor in developing multiple chillers, cooling towers, and CRAH units. In Saudi Arabia, data centers’ construction will increase the adoption of multiple chillers, cooling towers, and CRAH units.

Newly constructed data center facilities will use advanced air-based cooling techniques because of the high temperature. Data centers in Turkey adopt CRAC & CRAH units and chiller units. In terms of redundancy, most operators use N+1 and N+2 cooling redundancy. Besides, operators are likely to deploy dual water feed for efficient and uninterruptable operations.

Brownfield development is more cost-effective than greenfield development in the Middle East. In the Middle Eastern region, data center commissioning service providers follow standard operating procedures, depending on the depth of commissioning required in the facility. The Middle East data center market is mostly dominated by small data centers with less than 15 MW power centers. The building & engineering design market is expected to reach over USD 32 million in 2026, growing at a CAGR of approx-7%.

The increasing demand for reliable, efficient, and flexible building infrastructure among service operators is expected to influence its growth. The adoption of physical security apparatus is increasing to protect the data and information. BFSI, telecommunication, and healthcare are the most vulnerable sectors for intrusions and breaches. Sensors and video cameras are installed for surveillance in data centers in the region.

The use of artificial intelligence and machine learning in the data center is driving the DCIM solutions market. DCIM solutions improve efficiency, monitor power consumption, and predict system failures. They are becoming a major part of data center operations as they monitor critical elements such as power, cooling, and IT infrastructure.

Most data centers in the UAE are Tier III certified or built according to Tier III standards. Several data centers in Saudi Arabia are built according to Tier III or Tier IV standards and have a minimum redundancy of N+1 in power and cooling infrastructure. Tier III data centers are equipped with UPS systems redundancy of N+1.

The majority of modern data centers in Turkey are developed according to Tier III standards, with a minimum of N+1 redundancy in power infrastructure. A few data centers operate 2N power infrastructure or have additional capacity to commission 2N infrastructure solutions based on the customer’s demand. Most developments in Turkey are greenfield projects, whereas modular data centers are confined to enterprise on-premises deployments.


Arista Network, AWS, Atos, Broadcom, Cisco Systems, and Dell Technologies are among the major IT vendors expanding their presence in the Middle East region.

They have a strong physical presence in the region and are the major adopters of high-density, mission-critical servers, storage infrastructure, and network infrastructure. Vendors are focusing on sustainable data centers. They procure renewable energy sources in partnership with local service providers. Construction and design are critical for data center operators because they need to adhere to the Uptime standards.

Key Data Center Critical (IT) Infrastructure Providers

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise (HPE)
  • Huawei Technologies
  • IBM
  • Lenovo
  • NetApp

Key Data Center Contractors

  • Atkins
  • Deerns
  • Edarat Group
  • ISG
  • RED Engineering
  • Harinsa Qatar (HQ)
  • Turner & Townsend
  • McLaren Construction Group
  • ICS Nett
  • Linesight
  • Qatar Site and Power (QSP)

Key Data Center Investors

  • Amazon Web Services (AWS)
  • Akbank
  • Batelco
  • Etisalat Group
  • Equinix
  • Gulf Data Hub
  • Turkcell
  • Telecom Italia Sparkle
  • Khazna
  • Zain

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage

4.1 Market Definition

4.2 Base Year

4.3 Scope of The Study

4.4 Market Segments

5 Report Assumptions & Caveats

5.1 Key Caveats

5.2 Currency Conversion

5.3 Market Derivation

6 Market at a Glance

7 Introduction

7.1 Internet & Data Growth

7.2 Data Center Site Selection Criteria

8 Market Opportunities & Trends

8.1 5G To Grow Edge Data Center Investments

8.2 Growing Procurement Of Renewable Energy

8.3 Submarine Cable Deployment & Impact On Data Center Investment

8.4 Smart City Initiatives Fuel Data Center Deployments

9 Market Growth Enablers

9.1 Impact Of COVID-19 On Data Center Market

9.2 Rise In Data Center Investments

9.3 Big Data, IoT & Cloud Drive Data Center Investment

9.4 Migration From On-Premises Infrastructure To Colocation & Managed Services

9.5 Modular Data Center Development

10 Market Restraints

10.1 Location Constraints For Data Center Construction

10.2 Lack Of Skilled Workforce

10.3 Security Breaches Hinder Data Center Investments

11 Market Landscape

11.1 Market Overview

11.2 Market Size & Forecast

11.3 Area

11.4 Power Capacity

11.5 Five Forces Analysis

12 Infrastructure

12.1 Market Snapshot & Growth Engine

12.2 IT Infrastructure

12.3 Electrical Infrastructure

12.4 Mechanical Infrastructure

12.5 General Construction

13 IT Infrastructure

13.1 Market Snapshot & Growth Engine

13.2 Server Infrastructure

13.3 Storage Infrastructure

13.4 Network Infrastructure

14 Electrical Infrastructure

14.1 Market Snapshot & Growth Engine

14.2 UPS Systems

14.3 Generators

14.4 Transfer Switches & Switchgear

14.5 Power Distribution Units

14.6 Other Electrical Infrastructure

15 Mechanical Infrastructure

15.1 Market Snapshot & Growth Engine

15.2 Cooling Systems

15.3 Racks

15.4 Other Mechanical Infrastructure

16 Cooling Systems

16.1 Market Snapshot & Growth Engine

16.2 CRAC & CRAH Units

16.3 Chiller Units

16.4 Cooling Towers, Condensers & Dry Coolers

16.5 Other Cooling Units

17 Cooling Technique

17.1 Market Snapshot & Growth Engine

17.2 Air-Based Cooling Techniques

17.3 Liquid-Based Cooling Techniques

18 General Construction

18.1 Market Snapshot & Growth Engine

18.2 Core & Shell Development

18.3 Installation & Commissioning Services

18.4 Building & Engineering Design

18.5 Physical Security

18.6 DCIM/BMS Solutions

19 Tier Standards

19.1 Market Snapshot & Growth Engine

19.2 TIER I & II


19.4 TIER IV

20 Geography

20.1 Market Snapshot & Growth Engine

20.2 Area Snapshot & Growth Engine

20.3 Power Capacity Snapshot & Growth Engine

20.4 United Arab Emirates

20.5 Saudi Arabia

20.6 Turkey

20.7 Jordan

20.8 Other Middle Eastern Countries

21 Competitive Landscape

21.1 IT Infrastructure

21.2 Construction Contractors

21.3 Data Center Investors

For more information about this report visit https://www.researchandmarkets.com/r/6pglwg

Roboticulized digests/handpicks the latest news about the artificial intelligence/machine learning industry and serves them to you daily. We provide you with the latest news and press releases straight from the AI/ML industry.