Middle East Data Center Market (2021-2027) | Size, Share, Revenue, Analysis, Forecast, Trends, industry, Outlook & COVID-19 IMPACT

Latest 2023 Development of the Middle East Data Center Market

The Middle East Data Center Market has been growing steadily in recent years by the increasing demand for cloud services, the rise of smart cities, and the growth of e-commerce. The region has also seen significant investment in infrastructure and technology. Some of the latest developments in the Middle East data centre market include the announcement of new data center projects, increased investment, and increasing cloud adoption with businesses and governments increasingly turning to cloud-based solutions to store data. The Middle East region is witnessing tremendous demand for cloud services, which has led to a surge in demand for data center infrastructure.

The Middle East has seen a significant increase in smartphone usage in recent years, with a growing number of people accessing the internet through their mobile devices. Many businesses in the Middle East region are undergoing digital transformation, which involves the adoption of new technologies to improve their operations and enhance their competitiveness which also drives demand for the data center industry of the Middle East and infrastructure to support the growing amount of data being generated by these technologies.

Middle East Data Center Market Synopsis

Middle East Data Center Market experienced significant growth in the year 2020 on account of the COVID-19 pandemic, which resulted in increased access to internet-related services assisted by countrywide lockdowns and limitations. During the pandemic, IoT-enabled devices were widely used for monitoring and surveillance, particularly in the healthcare sector. Government agencies have also aided in the expansion of cloud-based services throughout the Middle East. In Kuwait, the Ministry of Health (MoH) and the Central Agency for Information Technology (CAIT) collaborated with Zain to launch Shlonik, an application that tracks citizens who have returned to the country. Furthermore, initiatives such as Saudi Vision 2030, Qatar Vision 2030, Bahrain 2030, Kuwait Vision 2035, Oman Vision 2040, UAE Vision 2021, Abu Dhabi vision 2030, Digital Oman 2030 strategy, Saudi Arabia’s Cloud-First Policy, and e-Health strategy, Qatar’s Smart Kids Scholastic Academy educational platform, Qatar National Health Strategy (2018-2022) and ???????????Qatar National E-Health & Data Program, Kuwait’s First Virtual Clinic, Bahrain’s Digital Government Strategy 2022 among others would lead to rapid urbanization and digital transformation of the respective countries, thereby giving a tremendous boost to corporate, education, healthcare, government and other sectors, which would further boost the deployment and growth of Data Center Market in Middle East region in upcoming years.

According to 6Wresearch, the Middle East Data Center Market size is projected to grow at a CAGR of 12.4% during 2021-2027. The market is likely to experience rapid growth in the forecast period on account of increased investment in IoT, big data analytics, and artificial intelligence combined with the deployment of 5G technology by enterprises across the Middle Eastern region. Further, cloud services are being embraced by businesses in a variety of industries, including banking, financial services, insurance, IT & telecommunications, energy & utilities, media & entertainment, and manufacturing, which is boosting the data center market. Adoption of these technologies would lead to an increase in data volume and network bandwidth requirements, thereby resulting in the growing demand for the data center market in the forecast period.

Market Analysis by Type

Cloud data centers dominated the Middle East data center market revenues in 2020 on account of government initiatives such as the Cloud First Policy by Bahrain and Saudi Arabia which encourages public sector migration from traditional data centers to cloud-based models. Similarly, Oman has partnered with Oracle’s cloud solutions to migrate 120 government entities to an integrated Government Cloud (G-Cloud) platform. Additionally, the demand for cloud-based services increased in the year 2020, due to pandemic-related lockdown restrictions resulting in the closure of office establishments, schools, hotels, and other organizations due to which, the cloud data center market has experienced substantial growth as it offers more secure and robust IT infrastructures.

Market Analysis by Infrastructure

Within infrastructure types, tier I, Tier II, and Tier III data centers gained a cumulative market share of around 70% in the overall market revenues in 2020, where, tier III data centers acquired the largest revenue share in 2020 overall Middle East Data Center Market Growth and the same trend is expected to continue in the future on account of its preference by the businesses owing to its lower annual downtime of 1.6 hours compared to annual downtime of tier I and II with 28.8 and 22 hours, respectively. Thus, the chances of financial losses caused by maintenance and disruptions in tier III facilities are less compared to tier I and tier II.  Additionally, the majority of upcoming projects in the region are tier-III certified. For instance, upcoming data centers by Etisalat and Meeza in UAE and Qatar respectively, are expected to be Tier III certified.

Market Analysis by Geography

Based on countries, UAE and Saudi Arabia Data Center Markets acquired the maximum revenue share in 2020 on account of the wide adoption of 5G technology across the countries and increased usage of cloud, social media, and video conferencing services due to the lockdown imposed by the country. Additionally, UAE offered free satellite broadband services for students in areas lacking connectivity and free home internet connection for families who have no home internet connection and the country launched Innovation Strategy 2019-2021 which includes virtual visits, mHealth, and remote patient monitoring (RPM), which would augment the market of digital healthcare, which in turn would help the country to maintain its dominance in the Middle East region over the coming years as well.

Key Attractiveness of the Report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2017 to 2020.
• Base Year: 2020
• Forecast Data until 2027.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report

• Middle East Data Center Market Overview
• Middle East Data Center Market Outlook
• Middle East Data Center Market Forecast
• Historical Data and Forecast of the Middle East Data Center Market Revenues for the Period 2017-2027F
• Historical Data and Forecast of Revenues, By Types, Infrastructure Type, Applications, and Countries for the Period 2017-2027F
• Market Drivers and Restraints
• Middle East Data Center Market Trends and Industry Life Cycle
• Porter’s Five Force Analysis
• Market Opportunity Assessment
• Middle East Data Center Market Share, By Company
• Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Types:

• Enterprise Data Center
• Managed Data Center
• Cloud Data Center
• Colocation Data Center

By Infrastructure Types:

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

By Applications:

• BFSI
• Telecom & IT
• Government
• Healthcare
• Others (Hospitality, Retail)

By Countries:

• Saudi Arabia
• Oman
• United Arab Emirates
• Bahrain
• Qatar
• Kuwait
• Iraq
• Rest of the Middle East (Lebanon, Egypt, Iran, Yemen)