By Akanimo Sampson
By the end of 2026, the data centre market in Middle East and North Africa (MENA) is expected to grow at a compounded annual growth rate of around 8% and is expected to reach $5 billion.An in-depth study by Arizton Advisory and Intelligence revealed that the region is experience a surge in data centre demand because of the COVID-19 pandemic, increased digitalisation. 5G penetration, adoption of cloud and hybrid infrastructure services, along with major government initiatives are boosting the region’s data center market.
The Arizton report also says the UAE is a preferred data center investment location in the Middle East, attracting investments in around four colocation data center facilities in 2020. The colocation service providers were Khazna, Etisalat, and Equinix.Most data centers in the Middle East are being developed in prominent locations, especially within the GCC countries. In recent years, these locations have attracted considerable investments, and more data centers are planned for 2020 and 2021.
Rapid development in network connectivity, government support, and growth in the adoption of cloud, big data, and IoT services have been strong drivers for the growth of the UAE data center industry.
The rising adoption of cloud-based services is leading to the growth of retail and wholesale colocation services in the region. The market is witnessing an increase in the demand for colocation spaces across existing and upcoming data centers.
Some leading cloud service providers such as Oracle, Alibaba Cloud, Microsoft Azure, and IBM have a presence in the country.
The MENA data centre market added around 2% of the global data center market investments in 2020, with Turkey, the UAE, and countries such as Oman, Qatar, and Kuwait are leading the region.
As many as 29 announced, planned, and under construction projects have been identified in the region, all of which are expected to be operational within the next two to three years.
There is an increasing adoption of modular data centers, to cater to challenges in the region such as high PUE, high operational cost of traditional data centers, and the lack of skilled workers to fulfill the requirements of a full-fledged data centers.
The MENA server market are witnessing growth due to the growth in data traffic. The demand for ODM servers is increasing in the market. Data center operators are adopting the IT infrastructure to match high-end data processing requirements.UPS systems are being widely adopted to provide backup power for cooling systems installed in the facility. The adoption of lithium-ion batteries is likely to increase during the forecast period as their price will decline. In the UAE, the market is observing the adoption of N+1 redundant UPS systems. Data center operators will increasingly use renewable energy to power facilities.The MENA data center market by mechanical infrastructure is expected to reach over $200 million by 2026. The adoption of cooling units highly depends on the IT load, rack density, and cooling systems design. Cooling systems and IT infrastructure are the predominant power consumers in data centers. Operators have adopted several innovations such as energy-efficient cooling infrastructure solutions to increase operational efficiency, reduce power consumption, and decrease carbon emissions.Over the last few years, many countries in the region have been working toward digital transformation as a way to attract foreign investment and propel growth. The implementation of 5G across various countries is an important aspect of this process. As of November 2020, over ten operators have already implemented 5G services in the GCC countries.
According to the Ericsson Mobility Report dated November 2020, the Middle East has the highest proportion of quality-led service providers at 45% and enjoys the position of an incumbent in the worldwide 5G industry.
Most data centers in the Middle East are being developed in prominent locations, especially within the GCC countries. In recent years, these locations have attracted considerable investments, and more data centers are planned for 2020 and 2021.
The UAE is a preferred data center investment location in the Middle East, attracting investments in around four colocation data center facilities in 2020. The colocation service providers were Khazna, Etisalat, and Equinix.
Rapid development in network connectivity, government support, and growth in the adoption of cloud, big data, and IoT services have been strong drivers for the growth of the UAE data center industry.
The rising adoption of cloud-based services is leading to the growth of retail and wholesale colocation services in the region. The market is witnessing an increase in the demand for colocation spaces across existing and upcoming data centers.
Some leading cloud service providers such as Oracle, Alibaba Cloud, Microsoft Azure, and IBM have a presence in the country.