DUBLIN--(BUSINESS WIRE)--The "Data Center Construction Market in Middle East Africa - Industry Outlook and Forecast 2020-2025" report has been added to ResearchAndMarkets.com's offering.
In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included
The study considers the present scenario of the data center construction market in Middle East Africa and its market dynamics for the period 2019-2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The study offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.
The data center construction market in Middle East Africa is expected to grow at a CAGR of over 5% during the period 2019-2025
The data center construction market share in Middle East Africa is expected to grow on account of the growth in internet penetration, social media usage, and smart city initiatives across the region. The demand for cloud computing, big data, and IoT technologies is likely to emerge as a prominent driver for data center development in the Middle Eastern region. Countries across the Middle East are likely to witness the improvement in network connectivity via the installation of inland and submarine network connectivity.
The construction of traditional brick-and-mortar facilities is also growing along with the rising deployment of modular facilities. The data center market in Middle East is attracting significant investments in recent years, led by countries such as UAE, Bahrain, Qatar, Turkey, Jordan and Saudi Arabia.
South Africa continues to dominate the data center construction market in Africa. In 2019, Morocco witnessed higher investments followed by Egypt, Kenya, and Nigeria. Colocation and telecommunication service providers are major investors in Africa, followed by enterprises and governments agencies. The increase in internet penetration, smartphone users, and improvement in broadband connectivity is aiding the growth of data across African countries.
The following factors are likely to contribute to the growth of the data center construction market in Middle East Africa during the forecast period:
- Availability of Renewable Energy Prompts Procurement Growth
- Smart City Initiatives Leading Edge Data Center Deployments
- Government Support to Boost Digital Economy in Middle East & Africa
- Cloud Adoption Fueling Data Center Investments
Data Center Construction Market in Middle East Africa - Segmentation
This research report includes a detailed segmentation by, Electrical Infrastructure, general construction, mechanical infrastructure, tier standards, and geography.
The adoption of lithium-ion batteries will emerge in the next two years in UAE and Saudi Arabia countries. However, the use of lithium-ion, will pick up in the next 3-4 years in Africa countries, as many operators start to build large and hyperscale facilities. The market for generators will continue to grow because of the continuous construction of large and mega facilities in the region. The adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) systems is also growing since these systems combine both battery and flywheel UPS topology and a diesel generator to provide backup power during outages.
Data centers operated in Middle East countries do not support the use of free cooling systems. The Middle Eastern data centers market is adopting water-based cooling systems. The direct liquid cooling and immersion cooling solutions are likely to emerge in the market through the deployment of artificial intelligence and machine learning workloads in IoT and big data environment.
The data center market in Saudi Arabia has the presence of both local and global data center contractors. The market lacks a strong skilled workforce to accommodate the growing need for data center operational personnel. However, the facility investments are likely to increase the skilled workforce during the forecast period. The UAE will aid in the growth of greenfield projects as well as modular data centers. The country also has a strong presence of local as well as global data center contractors in the design, construction, installation, and commissioning services.
A majority of data center development in Turkey is greenfield type, whereas modular facilities are confined to enterprise on-premise deployments. In terms of construction, most colocation facilities in South Africa have installed physical security solutions, ranging from perimeters to video surveillance to biometric systems. The rapid growth in colocation data centers will increase the investment in physical security systems in the African market. Data center facilities in Morocco are installing 24X7 physical security with CCTV surveillance, and intrusion detection devices.
Currently, operators in Middle East & Africa are spending on infrastructure across Tier I and Tier II facilities, while focusing on adding redundant infrastructure for power. These data centers have a power capacity of less than 1 MW and are not involved in running mission-critical applications. A majority of under-developed projects across the region fall under the Tier III category. This trend is likely to continue during the forecast period.
Around eight data centers, which were opened in 2019, are of Tier III standard. About 10 Tier III data centers, which were under construction in 2019, are expected to open by Q1 & Q2 of 2020. Tier IV data centers are equipped with at least 2N+1 redundancy in every infrastructure that makes the facility fault-tolerant, with UPS systems and PDUs having 2N+2 redundancy. Amazon Web Services' data center in Bahrain is one of the major contributors to the Middle East Tier IV market.
Segmentation by Electrical Infrastructure
- Transfer Switches & Switchgears
- Rack PDUs
- Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH Units
- Cooling Towers & Dry Coolers
- Other Units
- Other Mechanical Infrastructure
Segmentation by General Construction
- Building Development
- Installation & Commissioning Services
- Building Designs
- Physical Security
Segmentation by Tier Standards
- Tier I & Tier II
- Tier III
- Tier IV
Insights By Geography
The demand for cloud computing, big data, and IoT technologies will be a predominant driver for data center development in the Middle Eastern region. The investment in the market is aided by the construction of facilities by telecommunication providers, enterprises, government, cloud, and colocation service providers. Similarly, the investment in Africa is growing significantly, aided by the construction of data centers by telecommunication providers, enterprises, government, cloud, and colocation service providers.
Over the last few years, the region witnessed interest from leading cloud service providers such as AWS and Microsoft. Huawei also has a strong presence in the market and provides modular data center solutions for enterprise and government agencies. The demand for cloud services is growing among SMEs in the African region. It is expected that over 50% of the organizations operating in the African region will shift to cloud services by 2025.
Segmentation by Geography
- Saudi Arabia
- Other Middle East Countries
- South Africa
- Other African Countries
Insights By Vendors
Multiple electrical infrastructure providers operate in the data center construction market in Middle East Africa. The growing data center construction market is prompting providers to improve the efficiency of solutions that are currently being offered. Many countries in the region suffer from frequent power fluctuations and power outages. This will enable operators to adopt efficient power backup solutions, with UPS systems that offer over 95% efficiency.
The market for VRLA UPS systems will continue to dominate the market. However, the share of VRLA UPS systems will start declining by the end of the forecast period. Schneider Electric, Vertiv, and Huawei have a strong presence in the market.
Prominent Support Infrastructure Providers
- Euro-Diesel (KINOLT)
- MTU On Site Energy
- Schneider Electric
- Shenzhen Envicool Technology
Prominent Construction Contractors
- Aveng Grinaker
- Edarat Group
- Etix Everywhere
- Enmar Engineering
- Harinsa Qatar (HQ)
- ICS Nett
- Laing O'Rourke
- McLAREN Construction Group
- NOVA Mission Critical
- Qatar Site and Power
Prominent Data Center Investors
- Amazon Web Services (AWS)
- Batelco (Bahrain Telecommunications Company)
- Etisalat Group
- Gulf Data Hub
- Internet Technologies Angola (ITA)
- Raxio Data Center
- Telecom Italia Sparkle
- Teraco Data Environments
List of Chapters
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
5 Report Assumptions & Caveats
6 Market at a Glance
8 Impact of COVID-19
9 Market Opportunities & Trends
10 Market Growth Enablers
11 Market Growth Restraints
12 Market Landscape
13 By Infrastructure
14 By Electrical Infrastructure
15 By Mechanical Infrastructure
16 By Cooling Systems
17 By Cooling Techniques
18 By General Construction
19 By Tier Standards
20 By Geography
21 Middle East
23 Competitive Landscape
24 Prominent Data Center Support Infrastructure Providers
25 Prominent Construction Contractors
26 Prominent Data Center Investors
27 Report Summary
28 Quantitative Summary
For more information about this report visit https://www.researchandmarkets.com/r/pxgipj