New York, April 11, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Middle East Data Center Construction Market – Industry Outlook & Forecast 2023–2028” – https://www.reportlinker.com/p06446257/?utm_source=GNW
Other factors include the continuous increase in investments in cloud-based services and smart city developments in the UAE and Kingdom of Saudi Arabia.
• Digitalization across businesses will increase data center investments by colocation, cloud, Internet, and telecommunication providers. Some telecom companies such as Ericsson, stc, Turk Telecom, Cellcom, Zain, Nokia, Vodafone, Ooredoo, du, and Omantel are responsible for deploying and introducing 5G services in Middle Eastern countries.
• The presence of industrial parks, the availability of land, and the government’s support motivate data center operators t- develop data centers in Middle Eastern 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.
MARKET TRENDS & DRIVERS
Rise in the Procurement of Renewable Energy Sources
• The Middle East has an abundance of availability of solar energy, where most of the countries in the region are undertaking renewable energy strategies & visions t- develop renewable energy projects and meet the carbon-neutral goals set by respective governments in the region.
a) In the UAE, the Energy Strategy 2050 aims t- increase the share of renewable energy from 25% t- 50% in the total energy mix by 2050.
b) Saudi Arabia has launched The National Renewable Energy Program (NREP) under Vision 2030, where 13 projects will generate over 4.8 GW of renewable energy. In addition, Bahrain plans t- generate around 280 MW of electricity from renewable sources by 2025, increasing t- around 700 MW by 2030 t- attain national renewable energy targets.
• In December 2022, Saudi Arabia announced the development of 10 renewable energy projects with a power capacity of 7 GW, which is part of the Kingdom’s 2030 Vision.
• In February 2022, Quantum Switch Tamasuk (QST) signed a deal with the Ministry of Communications and Information Technology (MCIT) Saudi Arabia t- develop data center facilities in Saudi Arabia. Additionally, both parties will collaborate t- secure and develop renewable energy sources t- power their facilities.
Increasing Cloud Investments
The increase in digitalization and the shift of workloads t- cloud platforms from on-premises facilities t- make their operations more efficient and scalable witnessed the increase in investments by cloud service providers in the Middle East over the last few years.
• Amazon Web Services aims t- develop the infrastructure region in Tel Aviv, Israel, which will likely be operational in 2023.
• In 2022, Google Cloud launched its first local cloud region in Israel. Amazon outpost cloud services were deployed for the first time in Oman in the Oman Data Park, and Microsoft Azure established its first global data center region in Qatar.
SEGMENTATION INSIGHTS
• Most facilities are being developed t- operate at a PUE of less than 1.5. In contrast, few facilities in countries like Turkey that adopt partial free cooling during peak winters aim t- operate at a PUE of less than 1.3.
• In the Middle East data center construction market, the investment in cooling infrastructure contributes t- the major share of more than 50% in the mechanical infrastructure due t- the high temperature in some countries during the peak summers.
• The region witnessed growth in the deployment of data centers in Tier III and Tier IV certification in the design phase/construction phase of the region. In contrast, most private and public entities (BFSI, education, government) have received Uptime Institute’s Tier III/IV certification during the design phase or for the constructed facility.
Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction
Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgear
• 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
• Economizers & Evaporative Coolers
• Other Cooling Units
Cooling Techniques
• Air-Based Cooling
• Liquid-Based Cooling
General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM/BMS Solutions
Tier Standard
• Tier I & Tier II
• Tier III
• Tier IV
GEOGRAPHICAL ANALYSIS
• UAE dominates the regional industry in terms of data center developments. In addition, Saudi Arabia, Israel, and Oman are among the major contributors t- high data center development activities in the Middle East. Qatar, Bahrain, and Kuwait are emerging markets that witness significant growth as a result of digitalization and growth in connectivity.
• In the Middle East data center construction market, the presence of smart cities in the region als- drives 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 als- comprise the data center development under a joint venture firm ZeroPoint DC.
Geography
• UAE
• Saudi Arabia
• Israel
• Oman
• Qatar
• Kuwait
• Jordan
• Bahrain
• Other Middle Eastern Countries
KEY MARKET PARTICIPANT INITIATIVES
• The surge in data center activities across the country will be a major source of revenue for construction contractors. Some prominent local and global construction contractors in the Middle East data center construction market include AECOM, Laing O’Rourke, Dar Group, AlDar Properties, Mercury Engineering, Deerns, Anel Group, ENMAR Engineering, Arup, DC Pr- Engineering, Edarat, HHM Building Contracting, and Red Engineering. For instance, Laing O’Rourke is selected by Khazna Data Centres t- design and build a facility and office space in Dubai Design District.
Prominent Data Center Support Infrastructure
1. ABB
2. Airedale
3. Alfa Laval
4. Canovate
5. Caterpillar
6. Cummins
7. Delta Electronics
8. EAE Group
9. EATON
10. Envicool
11. HITEC Power Protection
12. Johnson Controls
13. Legrand
14. Rittal
15. Rolls-Royce
16. Schneider Electric
17. Siemens
18. STULZ
19. Vertiv
Prominent Data Center Construction Contractors
• AECOM
• AlDar Properties
• Anel Group
• Arup
• Ashi & Bushnag
• Atkins
• Dar Group
• DC Pr- Engineering
• Deerns
• Edarat
• EGEC
• ENMAR Engineering
• Harinsa Qatar (HQ)
• HATCO
• HHM Building Contracting
• Hill International
• ICS Nett
• INT’LTEC
• ISG
• Laing O’Rourke
• Linesight
• M+W Group (Exyte)
• Mace
• Mercury Engineering
• McLaren Construction Group
• MIS
• NDA Group
• Prota Engineering
• Qatar Site & Power
• RED Engineering
• RW Armstrong
• Sudlows
• Telal Engineering & Contracting
• Turner & Townsend
Prominent Data Center Investors
• Adgar Investments and Development
• Amazon Web Services (AWS)
• Batelco
• Bynet Data Communications
• Equinix
• EdgeConneX
• Future Digital Data Systems (FDDS)
• Gulf Data Hub
• Google
• Khazna Data Centers
• Mor- Hub
• MedOne
• MEEZA
• Mobily
• Microsoft
• Oman Data Park
• Ooredoo
• stc
• Turkcell
• Türk Telekom
• Telehouse
• Tencent Cloud
New Entrants
• Compass Datacenters
• Digital Realty
• Infinity
• EDGNEX
• Global Technical Realty
• Quantum Switch
• ZeroPoint DC
• Serverfarm
KEY QUESTIONS ANSWERED:
1. How big is the Middle East data center construction market?
2. What is the growth rate of the Middle East data center construction market?
3. What factors drive the Middle East data center construction market growth?
4. What is the estimated market size in terms of area in the Middle East data center construction market by 2028?
5. Wh- are the new entrants in the Middle East data center construction market?
6. How many MW of power capacity is expected t- reach the Middle East data center construction market by 2028?
Read the full report: https://www.reportlinker.com/p06446257/?utm_source=GNW
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