The data center construction market in Middle East Africa is expected to grow at a CAGR of over 5% during the period 2019-2025
NEW YORK, June 17, 2020 /PRNewswire/ -- In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Middle East Africa Data Center Construction Market Report
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
o CRAC & CRAH Units
o Cooling Towers & Dry Coolers
o 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
• Middle East
o Saudi Arabia
o Other Middle East Countries
o South Africa
o 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
Key Questions Answered
1. What is the market size of the data center construction market analysis in Middle East Africa?
2. What are the factors impacting the growth of the data center construction market forecast in Middle East Africa?
3. What are the drivers, trends, and restraints in the market?
4. Who are the leading vendors and what are their market shares?
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