The "Middle East Data Center Construction Industry - Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The Middle East Data Center Construction Market was valued at USD 2.35 billion in 2023, and is expected to reach USD 4.39 billion by 2029, rising at a CAGR of 10.98%.

The Middle East data center construction market is segmented into three parts- electrical infrastructure, mechanical infrastructure, and general construction. They are interconnected and interdependent. In a market such as the Middle East, cooling systems and techniques play a pivotal role due to the region's harsh climatic conditions.

Crucial internal software and hardware such as servers, computing devices, and other equipment must cool down as they work incessantly to manage millions of data center operations daily. Therefore, to keep these up and running, proper power backup facilities such as UPS systems and generators are needed, with this region now focusing on sustainable ways to power them, such as using EcoDiesel, natural gas, biofuel, and other non-traditional sources. The facility also needs physical security and fire safety, ensuring the smooth running of the day-to-day activities without any external or internal threats.

KEY TRENDS

Sustainable Initiatives on Rise

The Middle East is diverting its focus to a greener future that can be sustained in the long run, keeping the planet's well-being in mind. The UAE, Saudi Arabia, Israel, Kuwait, Oman, and others are starting to use renewable energy sources such as solar, wind, and bioenergy for their facilities' power needs. Implementing air-based cooling techniques is also rising to curtail water consumption further. UAE's Moro Hub launched the largest solar-powered data center facility in Dubai, while Equinix's newly launched DX3 facility in Dubai is said to be powered by 100% renewable energy.

The Age of Artificial Intelligence

Artificial Intelligence (AI) has taken the world by storm, and its future looks promising. Like other regions worldwide, the Middle East leaves no stone unturned to make AI happen. Almost every country in the region has an AI committee launching national AI strategies to promote its development and upskill its workforce, creating better technology and employment opportunities for its citizens. Data centers are aiding AI via high-performance computing (HPC), data storage, networking, and hosting specialized hardware. The UAE and Saudi Arabia lead on this front, using AI to control the power grid and distribution. It is also helping operators identify the best time to generate, store, and use the energy produced. This gives them the added benefit of handling power generation and supply remotely.

Smart City Developments

Smart cities are rising in the Middle East, with the UAE and Saudi Arabia leading. UAE's Dubai and Abu Dhabi are among the world's smartest cities, with a global smart city index ranking of 17 and 13, respectively. They have several existing and upcoming smart city initiatives. The NEOM is one of the world's highly anticipated smart cities that will cost Saudi Arabia about USD 500 billion and is set to take the world by storm when it becomes operational by 2025.

GEOGRAPHICAL ANALYSIS

The Middle East is a fast-paced market with daily advances, striving to be at par with other developed regions worldwide. It has a high potential for growth in areas such as AI, smart cities, usage of sustainable energy resources, and more, encouraging more data centers to be constructed.

The UAE and Saudi Arabia have emerged as leaders of the Middle East data center construction market, equipped with sophisticated technology, cutting-edge safety/control systems, and a dominant market share. Kuwait, Qatar, Bahrain, and Israel are also on the way to emerge as leaders in these fields, with developments happening gradually.

VENDOR LANDSCAPE

• Prominent construction contractors in the Middle East data center construction market include AECOM, ENMAR Engineering, Anel Group, McLaren Construction Group, HHM Building Contracting, Turner & Townsend, and many others.
• Datacenter investors comprise major vendors such as Gulf Data Hub, Equinix, Khazna Data Centers, center3 (stc), Ooredoo, and others. Prominent investors such as Digital Realty, Compass Datacenters, Edgnex Data Centres by DAMAC, Agility, and Quantum Switch Tamasuk (QST) are new entrants in the Middle East data center construction market. Due to this, there is a decent possibility of them disrupting the market by proving to be major competitors to existing vendors and carrying with them the added advantage of having a generous customer base who will likely follow them to this region as well, bringing in more revenue and expansions in this market.
• Prominent support infrastructure vendors in the Middle East data center construction market include ABB, Alfa Laval, Eaton, Johnson Controls, Schneider Electric, Siemens, and Vertiv. These companies have a strong global presence and operate across the Middle East region. In some prominent countries with many existing and ongoing ventures, they operate directly, whereas in others, they operate through their channel partners and distributors and compete with local vendors.

Key Attributes:

Key Data Center Support Infrastructure Providers

• ABB
• Airedale
• Alfa Laval
• Canovate
• Caterpillar
• Cummins
• Delta Electronics
• EAE Group
• EATON
• Enrogen
• Envicool
• Generac Power Systems
• HITEC Power Protection
• Johnson Controls
• Legrand
• Piller Power Systems
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Vertiv

Prominent Data Center Construction Contractors

• AECOM
• ALEC Data Center Solutions
• Aldar Properties
• Al Latifia Trading & Contracting
• Anel Group
• Arup
• Ashi & Bushnag
• ASU
• Atkins
• Azura Consultancy
• Black & White Engineering
• Capitoline
• Core Emirates
• Dar Group
• DC Pro Engineering
• Deerns
• Edarat Group
• EGEC
• ENMAR Engineering
• Group AMANA
• Harinsa Qatar
• HATCO
• HHM Building Contracting
• Hill International
• ICS Nett
• INT'LTEC
• ISG
• JAMED
• James L. Williams (JLW)
• John Paul Construction
• Laing O'Rourke
• Laith Electro Mechanical
• Linesight
• M+W Group (Exyte)
• Mace
• McLaren Construction Group
• Mercury Engineering
• Middle East Modern Architecture (MEMA)
• MIS
• NDA Group
• Prota Engineering
• Qatar Site & Power
• Raghav Contracting
• RED Engineering
• RW Armstrong
• SANA Creative Systems
• Site & Power DK
• Sudlows
• Telal Engineering & Contracting
• Turner & Townsend
• UBIK

Key Data Center Investors

• Adgar Investments & Development
• Amazon Web Services
• Batelco
• Bynet Data Communications
• center3 (stc)
• EdgeConneX
• Equinix
• Gulf Data Hub
• Google
• Huawei Technologies
• Khazna Data Centers
• MedOne
• MEEZA
• Microsoft
• Mobily
• Moro Hub
• Oman Data Park
• Ooredoo
• Oracle
• Serverfarm
• Telehouse
• TONOMUS (ZeroPoint DC)
• Turkcell
• Turk Telekom

New Entrants

• Agility
• Compass Datacenters
• Digital Realty
• Edgnex Data Centres by DAMAC
• Global Technical Realty
• Quantum Switch Tamasuk (QST)

The report includes the investment in the following areas:

• Support Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH Units
  • Chillers Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Other Cooling Units
• Cooling Techniques
  • Air-based Cooling
  • Liquid-based Cooling
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM/BMS
• Tier Standards
  • Tier I & Tier II
  • Tier III
  • Tier IV

For more information about this report visit https://www.researchandmarkets.com/r/5fj6co

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