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MEA Data Center Construction Market to Exhibit a CAGR of 5% During 2019-2025, Despite COVID-19
[June 30, 2020]

MEA Data Center Construction Market to Exhibit a CAGR of 5% During 2019-2025, Despite COVID-19

DUBLIN, June 30, 2020 /PRNewswire/ -- The "Data Center Construction Market in Middle East Africa - Industry Outlook and Forecast 2020-2025" report has been added to's offering.

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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.

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 ofdata 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.

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.

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.

Market Dynamics

Opportunities & Trends

  • Availability of Renewable Energy Fuels Procurement Growth
  • Smart City Initiatives Fuel Data Center/Edge Deployments
  • Government Support to Boost Digital Economy in MEA

Growth Enablers

  • Cloud Adoption Fueling Data Center Investments
  • Big Data & IoT Spending Fueling Data Center Growth
  • Migration from On-Premise Infrastructure to Colocation & Managed Services
  • Increased Investments in Fiber Connectivity

Growth Restraints

  • Location Constraints for Data Center Construction
  • Lack of Skilled Workforce
  • Budget Constraints & Meagre Investment Support

Key Topics Covered

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
4.4 Market Segments

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance

7 Introduction
7.1 Internet & Data Growth
7.2 Data Center Site Selection Criteria

8 Impact of COVID-19
8.1 Impact of COVID-19 on Data Center Industry
8.2 Impact of COVID-19 on Data Center Construction Market in MEA

9 Market Opportunities & Trends

10 Market Growth Enablers

11 Market Growth Restraints

12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.3 Five Forces Analysis

13 By Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Electrical Infrastructure
13.4 Mechanical Infrastructure
13.5 General Construction

14 By Electrical Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 UPS Systems
14.3 Generators
14.4 Transfer Switches & Switchgear
14.5 Power Distribution Units
14.6 Other Electrical Infrastructure

15 By Mechanical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Cooling Systems
15.3 Racks
15.4 Other Mechanical Infrastructure

16 By Cooling Systems
16.1 Market Snapshot & Growth Engine
16.2 CRAC & CRAH Units
16.3 Chiller Units
16.4 Cooling Towers & Dry Coolers
16.5 Other Cooling Units

17 By Cooling Techniques
17.1 Market Snapshot & Growth Engine
17.2 Air-Based Cooling Techniques
17.3 Liquid-Based Cooling Techniques

18 By General Construction
18.1 Market Snapshot & Growth Engine
18.2 Building Development
18.3 Installation & Commissioning Services
18.4 Building Design
18.5 Physical Security

19 By Tier Standards
19.1 Market Snapshot & Growth Engine
19.2 Overview Of Tier Standards
19.3 TIER I & II
19.5 TIER IV

20 By Geography
20.1 Market Snapshot & Growth Engine

21 Middle East

22 Africa

23 Competitive Landscape
23.1 Electrical Infrastructure
23.2 Mechanical Infrastructure
23.3 General Construction

24 Prominent Data Center Support Infrastructure Providers
24.1 ABB
24.2 Caterpillar
24.3 Cummins
24.4 Eaton
24.5 Euro-Diesel (KINOLT)
24.6 Hitech Power Protection
24.7 Legrand
24.8 MTU On Site Energy (Rolls-Royce Power Systems AG)
24.9 Schneider Electric
24.1 STULZ
24.11 Shenzhen Envicool Technology
24.12 Rittal
24.13 VERTIV

25 Prominent Construction Contractors
25.1 Atkins
25.2 Aveng Grinaker
25.3 Concor
25.4 Deerns
25.5 Edarat Group
25.6 Etix Everywhere (Vantage Data Center)
25.7 Enmar Engineering
25.9 Harinsa Qatar
25.10 Huawei
25.11 ISG
25.12 ICS Nett
25.13 Laing O'Rourke
25.14 Linesight
25.15 MCLAREN Construction Group
25.16 Nova Mission Critical
25.17 Qatar Site & Power
25.18 Red-Engineering

26 Prominent Data Center Investors
26.2 Amazon Web Services (AWS)
26.3 Batelco
26.4 Equinix
26.5 Etisalat
26.6 Gulf Data HUB
26.8 Internet Technologies Angola (ITA)
26.9 INWI
26.10 KHANZA
26.11 N+ ONE
26.12 Raxio Data Center
26.13 Turkcell
26.14 Telecom Italia Sparkle
26.15 Teraco Data Environments
26.16 ZAIN

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