United Arab Emirates (UAE) Data Center Market Size by Investment to Reach USD 1,015 Million by 2026 – Arizton

In-depth analysis and data-driven insights on the impact of COVID-19 included in this United Arab Emirates (UAE) data center market report.

UAE data center market size is expected to grow at a CAGR of over 7.99% during the period 2020−2026. UAE data center market research report includes market size in terms of area, investment, power capacity, and colocation revenues. Get insights on 24 existing and 13 upcoming facilities spread across 5 cities, including Dubai, Abu Dubai, and other cities (Al Ain, Fujairah, and Sharjah).

Key Highlights Offered in the Report:
1. The UAE is one of the largest data center hubs in the Middle East, and its data center industry is thriving due to good submarine cable connectivity, high speed internet bandwidth, significant digital transformation, and fast adoption of the Internet of Things (IoT).
2. Dubai is the leading data center market in the UAE, with 16 unique third-party data center facilities accounting for around 60% of the existing power capacity, followed by Abu Dhabi, contributing to over 30% of the power capacity.
3. The UAE has free trade zones benefitting industrial and enterprise investments, with tax incentives. In 2020, the UAE received investment from colocation providers Equinix, Gulf Data Hub, Khazna Data Centers, Etisalat, Moro Hub, and Group 42.
4. The UAE has a presence of prominent cloud service providers such as Huawei Technologies, Alibaba, Microsoft, Oracle, IBM, and Amazon Web Services (AWS). In January 2020, IBM launched two data centers in Abu Dhabi and Dubai, UAE. AWS has announced a new cloud region in Abu Dhabi, to be operational in 2022.
5. Dubai is one of the world’s first smart cities and is one of the world’s fastest adopters of Internet of Things (IoT). The Smart IoT Dubai project is a government initiative to connect sensors across the city. Civil rights and law enforcement are a few legal issues connected with Smart IoT Dubai.
6. The UAE is working towards installing 42 GW of renewable energy in the country by 2050. Dubai has already started work on this vision by commissioning a five-part renewable energy project and is currently setting up an 800 MW solar park.

Key Offerings:
• Market Size & Forecast by Area, Power Capacity, Investment, and Colocation Revenue | 2020-2026
• Impact of COVID-19 on Data Center Market
• Snapshot of existing and upcoming third-party facilities in UAE
o Facilities Covered (Existing): 24
o Facilities Identified (Upcoming): 13
o Coverage: 5 cities
o Existing vs. Upcoming (Data Center Area)
o Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in UAE
o Market Revenue & Forecast (2020-2026)
o Retail Colocation Pricing
o Wholesale Colocation Pricing
• Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
• Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and tier standard
• Key Market Participants – List of 9 IT infrastructure providers, 11 construction service providers, 15 support infrastructure providers, and 7 data center investors

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UAE Data Center Market – Segmentation

• The adoption of advanced technologies such as cloud, IoT, big data, and artificial intelligence by enterprises will lead to higher adoption of high-performance computing infrastructure during the forecast period. The rise in digital transformation strategies and the adoption of cloud computing by enterprises are likely to increase cloud server adoption in the UAE.
• Majority of the data center facilities in the UAE are adopting N+1 redundant diesel generators with fuel back up of up to 24 hours. For instance, Gulf Data Hub Dubai data center facility is installed with N+1 redundancy generator with capacity of 16,000KVA and fuel storage of around 48,000 liters for 24 hours backup.
• In the UAE, most data centers are designed to cool servers through water-based cooling techniques. The growing construction of data centers will be one of the factors for the development of multiple chillers, cooling towers, and CRAH units.

Market Segmentation by IT Infrastructure

• Servers
• Storage Systems
• Network Infrastructure

Market Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer, Switches & Switchgears
• Rack PDUs
• Other Electrical Infrastructure

Market Segmentation by Mechanical Infrastructure

• Cooling Systems
• Rack Cabinets
• Other Mechanical Infrastructure

Market Segmentation by General Construction

• Building Development
• Installation & Commissioning Services
• Building Design
• Physical Security
• Data Center Infrastructure Management (DCIM)

Market Segmentation by Tier Standard

• Tier I & Tier II
• Tier III
• Tier IV

Market Segmentation by Geography

• Dubai
• Abu Dhabi
• Other Cities

UAE Data Center Market – Dynamics

As of January 2021, the population of the UAE was around 9.94 million. Internet users in the country are around 9.84 million as of 2021, at 99% internet penetration. Dubai is one of the world’s first smart cities and is one of the world’s fastest adopters of Internet of Things (IoT). The Smart IoT Dubai project is a government initiative to connect sensors across the city. Civil rights and law enforcement are a few legal issues connected with Smart IoT Dubai. In Dubai private and public companies are participating in IoT development to create job opportunities and new revenue streams.
Dubai Internet of Things (IoT) strategy seeks to build the world’s most advanced Internet Of Things (IoT) ecosystem in the world’s smartest city to improve people’s lives. Etisalat Digital uses NB-IoT technology to enable smart parking solutions to drivers to easily locate free parking spots in Dubai and Abu Dhabi. Software AG and du, from Emirates Integrated Telecommunications Company (EITC), signed a partnership to provide a subscription-based licensing model IoT services to its business customers.

Key Drivers and Trends fueling Market Growth:
• Cloud Adoption is Driving Data Center Demand
• On-Premises Infrastructure Migrates to Colocation & Managed Services
• Procurement of Renewable Energy
• 5G Deployment Leading Edge Data Center Investment

UAE Data Center Market - Existing Vs. Upcoming Data Centers

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

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Key Market Participants

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

Construction Constructors & Sub-Contractors
• Aldar Properties
• DC PRO Engineering
• Edarat Group
• HHM Building Contracting
• Laing O’Rourke
• Linesight
• M+W Group (Exyte)
• McLAREN Construction Group
• RED
• RW Armstrong
• Turner & Townsend

Support Infrastructure Providers
• ABB
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• HITEC Power Protection
• Johnson Controls
• Legrand
• Rittal
• Rolls-Royce Power Systems
• Schneider Electric
• STULZ
• Shenzhen Envicool Technology
• Siemens
• Vertiv Group

Data Center Investor
• Amazon Web Services (AWS)
• Equinix
• Etisalat Group
• Future Digital Data Systems
• Gulf Data Hub
• Khazna Data Centers
• Moro Hub

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