UAE Data Center Market Analysis Report

UAE Data Centers Market Analysis, 2021

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marknteladvisors.com

Document Outline

02

Research Scope

12

Sample Illustration

36

Research Process & Methodology

45 47 49 © 2021 | Reproduction is forbidden unless authorized | All Rights Reserved

Report Particulars, Key Questions Answered, Market Segmentation, Table of Content

UAE Data Centers Market Analysis, 2021

Research Approach, Research Methodology

Commercials Company Profile About the Company

Disclaimer & Contact Details

2

Report Particulars UAE Data Centers Market Report Basics Sr. No

Particulars

1

Report Published

April 2021

2

Number of Research Hours

183

3

Total Number of Pages in the Final Report

100+

4

Research Period

2016-2026 Historical Years

5

Currency Used Throughout the Report

6

Market Measurement

7

Number of Regions/Markets Covered in the Report

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2016-2019

Base Year

2020

Estimated Year

2021

Forecast Year

2026

The United States Dollars OR USD Value in USD million 3

3

Key Questions Answered in the Report

What is the market size (revenues) along with the current and future trends of the UAE Data Centers Market?

How the industry has been evolving in each region, and which segments would dominate the market during the forecast period?

What are the key opportunity areas that companies foresee in the next five years (2021-26)?

Who are the key players in the market, and What are their competitive strengths?

What are the key growth drivers and challenges associated with the market and how would they impact the market through the forecast period?

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4

Market Segmentation

UAE Data Centers Market

By IT Infrastructure • Servers • E-mail servers • Proxy Servers • DNS Servers • Storage • Central SAN (Storage Area Network) • DAS (Direct Attached Storage) • NAS (Network Attached Storage) • Network • Routers • Firewalls

By Electrical and Mechanical Infrastructure • • • •

Cabling Uninterrupted Power Supplies (UPS) Cooling Systems Others (Rack PDU, Switchgears, etc.,)

By Type • • • •

Enterprise Data Centers Colocation Data Centers Cloud Data Centers Edge Data Centers

By Company • • • • •

Khazna Etisalat Equinix Oracle Alibaba Cloud

By Tier Standards

By Region

By End Users

• Basic site infrastructure (Tier I) • Redundant-capacity component site infrastructure (Tier II) • Concurrently maintainable site infrastructure (Tier III) • Fault-tolerant site infrastructure (Tier IV)

• Dubai • Abu Dhabi • Sharjah and Northern Emirates

• • • • • •

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• Microsoft Azure • IBM • Amazon Web Services • MBUZZ • Cisco

Banking, Financial Services and Insurance Telecommunication and IT Government Energy and Utility Health Care Others (Retail, Hospitality, Entertainment and Media)

5

Study Background – Project Outline

(1/4)

Table of Content 1.

Introduction 1.1.

Product Definition

1.2.

Research Process

1.3.

Assumptions

1.4.

Market Segmentation

2.

Executive Summary

3.

Impact of COVID-19 on UAE Data Center Market

4.

Expert Verbatim: What our expert says?

5.

UAE Data Center Market Trends & Insights

6.

UAE Data Center Market Dynamics 6.1.

Growth Drivers

6.2.

Challenges

6.3.

Impact Analysis

7.

UAE Data Center Market Hotspot & Opportunities

8.

UAE Data Center Market Key Strategic Imperatives for Success & Growth

9.

UAE Data Center Market Analysis, 2016-2026F 9.1. Market Size and Analysis 9.1.1. By Revenue 9.2. Market Share and Analysis 9.2.1. By IT Infrastructure

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6

Study Background – Project Outline

(2/4)

Table of Content 9.2.1.1. Servers 9.2.1.1.1. E-mail servers 9.2.1.1.2. Proxy Servers 9.2.1.1.3. DNS Servers 9.2.1.2. Storage 9.2.1.2.1. Central SAN (Storage Area Network) 9.2.1.2.2. DAS (Direct Attached Storage) 9.2.1.2.3. NAS (Network Attached Storage) 9.2.1.3. Network 9.2.1.3.1. Routers 9.2.1.3.2. Firewalls 9.2.2.

By Electrical and Mechanical Infrastructure

9.2.2.1.

Cabling

9.2.2.2.

Uninterrupted Power Supplies (UPS)

9.2.2.3.

Cooling Systems

9.2.2.4.

Others (Rack PDU, Switchgears, etc.,)

9.2.3.

By Type

9.2.3.1.

Enterprise Data Centers

9.2.3.2.

Colocation Data Centers

9.2.3.3.

Cloud Data Centers

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7

Study Background – Project Outline

(3/4)

Table of Content 9.2.3.4.

9.2.4.

By Tier Standards

9.2.4.1.

Basic site infrastructure (Tier I)

9.2.4.2.

Redundant-capacity component site infrastructure (Tier II)

9.2.4.3.

Concurrently maintainable site infrastructure (Tier III)

9.2.4.4.

Fault-tolerant site infrastructure (Tier IV)

9.2.5.

By End Users

9.2.5.1.

Banking, Financial Services and Insurance (BFSI)

9.2.5.2.

Telecommunication and IT

9.2.5.3.

Government

9.2.5.4.

Energy and Utility

9.2.5.5.

Health Care

9.2.5.6.

Others (Retail, Hospitality, Entertainment and Media)

9.2.6.

9.2.7.

Edge Data Centers

By Region

9.2.6.1.

Dubai

9.2.6.2.

Abu Dhabi

9.2.6.3.

Sharjah and Northern Emirates

By Company 9.2.7.1.

Competition Characteristics

9.2.7.2.

Market Share and Analysis

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8

Study Background – Project Outline

(3/4)

Table of Content 10.

Dubai Data Center Market Analysis, 2016-2026F 10.2.

Market Size and Analysis

10.2.3.

10.3.

11.

Market Share and Analysis 10.3.3.1.

By IT Infrastructure

10.3.3.2.

By Electrical Infrastructure

10.3.3.3.

By Type

10.3.3.4.

By Tier Standards

10.3.3.5.

By End Users

Abu Dhabi Data Center Market Analysis, 2016-2026F 11.2.

Market Size and Analysis 11.2.3.

11.3.

12.

By Revenue

By Revenue

Market Share and Analysis 11.3.3.1.

By IT Infrastructure

11.3.3.2.

By Electrical Infrastructure

11.3.3.3.

By Type

11.3.3.4.

By Tier Standards

11.3.3.5.

By End Users

Sharjah & Northern Emirates Data Center Market Analysis, 2016-2026F 12.2.

Market Size and Analysis

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9

Study Background – Project Outline

(3/4)

Table of Content 12.2.3.

12.3.

13.

By Revenue

Market Share and Analysis

12.3.3.1.

By IT Infrastructure

12.3.3.2.

By Electrical Infrastructure

12.3.3.3.

By Type

12.3.3.4.

By Tier Standards

12.3.3.5.

By End Users

Competition Outlook 13.2.

Competition Matrix

10.2.1. Product Portfolio 10.2.2. Target Markets 10.2.3. Target End Users 10.2.4. Manufacturing Units 10.2.5. Research & Development 10.2.6. Strategic Alliances 10.2.7. Strategic Initiatives 10.3.

Company Profiles (Business Description, Product Offering, Business Segments, Financials, Strategic Alliances or Partnerships, Future Plans) 10.3.1.

Khazna

10.3.2.

Etisalat

10.3.3.

Equinix

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10

Study Background – Project Outline

(3/4)

Table of Content 10.3.4.

Oracle

10.3.5.

Alibaba Cloud

10.3.6.

Microsoft Azure

10.3.7.

IBM

10.3.8.

Amazon Web Services

10.3.9.

MBUZZ

10.3.10. Cisco 14.

Disclaimer

© 2021 | Reproduction is forbidden unless authorized | All Rights Reserved

11

Document Outline

02

Research Scope

12

Sample Illustration

36

Research Process & Methodology

45 47 49 © 2021 | Reproduction is forbidden unless authorized | All Rights Reserved

Report Particulars, Key Questions Answered, Market Segmentation, Table of Content

UAE Data Centers Market Analysis, 2021

Research Approach, Research Methodology

Commercials Company Profile About the Company

Disclaimer & Contact Details

12

UAE Data Centers Market Outlook, 2016-2026F

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13

UAE Data Centers Market, By Revenues

(1/1)

Figure XX: UAE Data Centers Market Revenues (USD Million), 2016- 2026F

CAGR

2016

2017

CAGR

Revenues: XX.XX%

2018

2019

2020

2021F

2022F

2023F

Revenues: XX.XX%

2024F

2025F

2026F

Source: MarkNtel Advisors

•

The UAE Data Centers Market has been soaring with a CAGR of XX% during the historical period owing to the smart city development projects, digitalization in government services, 5G infrastructure deployment, coupled with an expanding size of commercial industry requiring to set up its data center in the country. UAE has

been an oil dependent country for a long time but has now shifted its focus towards becoming the regional IT hub. The country has been proactive in integrating advanced technology, such as Artificial Intelligence (AI), Machine Learning (ML), Blockchain, Green Finance, 5G, etc. in spaces, such as financial services, healthcare, transportation, manufacturing, storage among other industries.

•

UAE Federal Law No. (2) of 2019 (the Health Data Protection Law) states that entities processing data relating to healthcare must comply with the new legislation which introduced the establishment of a central system (data center) to store, exchange and collect healthcare data, and has imposed fines for breaches of up to USD 272,259.

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14

UAE Data Centers Market, By IT Infrastructure

(1/4)

Figure XX: UAE Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By IT Infrastructure, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Server

2020

Storage

Network

2026

2020

2026F Server

•

Storage

Network

In the IT infrastructure segment, servers have grabbed the highest market share in the UAE Data Centers Market owing to the rising demand for Original Design Manufacturers (ODM) servers in the country. ODMs are customized servers according to the clients’ needs and preferences, moreover, the cost of ODM servers are

considerably low as compared to the branded available options, such as CISCO, Dell, HP, IBM, etc. which has shifted the buying pattern of buyers from branded to tailored servers.

•

The increasing adoption of cloud platform and the amplification of smart cities in UAE, such as Dubai Outsource City, Dubai Internet City, Zayed Smart City, Smart Dubai, etc. has resulted in humongous amounts of raw data which is churned out from connected devices (IoT), and increasing internet traffic. With this rising amounts of data produced, the demand for storage solutions, such as Central Storage Area Network, Direct Attached Storage, and Network Attached Storage has also risen notably.

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15

UAE Data Centers Market, By Electrical and Mechanical Infrastructure

(2/4)

Figure XX: UAE Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By Electrical and Mechanical Infrastructure, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Cabling

2020

UPS

2026

Cooling Systems Others

2020 Cabling

•

2026F UPS

Cooling Systems

Others

In Electrical and Mechanical Infrastructure segment, the demand for Uninterruptible Power Supply (UPS) has shown a progressive growth in the UAE Data Centers Market due to the need for backing critical IT infrastructure across sectors such as Oil & Gas, Government, large enterprises, healthcare, among others. These industries

need maximum uptime to run its critical applications, servers, etc.

•

Followed by the UPS, the demand for cooling systems, such as cooling towers, chiller plants, air conditioners, etc. has also escalated over the course of time as data center produces a lot of heat which conjoins with the UAE’s desert climate with hot summers, that reaches over 55 degrees Celsius in summers. Therefore, the demand for cooling systems in the data center has seen an upscale during the historical period.

•

In addition to this, big data centers use precision cooling systems which are specifically designed for big data centers that generates high amounts of heat. The flow rate X

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16

UAE Data Centers Market, By Type

(3/4)

Figure XX: UAE Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By Type, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Enterprise

2020

Colocation Cloud

2026

Edge

2020 Enterprise

•

2026F Colocation

Cloud

Edge

In data center type segment, cloud data centers has accommodated the largest share owing to the country’s increasing adoption for cloud platforms coupled with the rising investment of global cloud solution provider, such as AWS, Microsoft, Etisalat, etc. which has mandated the company to construct data centers within the UAE’s

borders due to its data localization policy.

•

In 2017, SAP opened its new MENA headquarters in Dubai Internet City with a five year investment plan of USD 200 million. The investment includes SAP's first Cloud Data Center in the UAE for UAE's government, banking and finance, and healthcare sectors.

•

Furthermore, many small to medium businesses in the UAE opt for colocation data center, or hosting of their servers to a third party data center provider, such as Khazna, Equinix, Mbuzz, etc. Colocating servers to a third party data center minimizes the burden of maintaining IT infrastructure. However, the large enterprises of the

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17

UAE Data Centers Market, By Tier Standards

(3/4)

Figure XX: UAE Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By Tier Standards, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Tier I

2020

Tier II Tier III

2026

Tier IV

2020 Tier I

•

2026F Tier II

Tier III

Tier IV

In Tier Standards segment, the demand for tier III data centers has captured a considerable share during the historical period of 2016 to 2019. The ability to undergo routine maintenance without any notable service disruption with 99.98% uptime has contributed to the growth of Tier III data centers in UAE. This type of data center

are best suited for growing companies or a business that is larger than the average SME businesses as it provides an N+1 backup, which is the amount required for operation plus a backup system, which would be enough at the time of a system failure/crash. For instance: •

In 2021, Etisalat announced to build its third data center in SmartHub in Kalba in the UAE. This would be a Tier III data center that aims to bridge the ICT gap between continents supporting critical business activities of global customers. However, the construction of this facility is due for early 2022.

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18

UAE Data Centers Market, By End User

(3/4)

Figure XX: UAE Data Centers Market Revenues (USD Million), By End User, 2016- 2026F 2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Banking, Financial Services and Insurance (BFSI)

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Telecommunication and IT

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Government

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Energy and Utility

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Health Care

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Others (Retail, Hospitality, Entertainment and Media)

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

•

In End User segment, BFSI sector dominated the UAE Data Center Market during the historical period. The growth is attributed to the burgeoning digital transformation

in UAE’s banking infrastructure for providing seamless banking services to customers. Apart from this, the growing cloud adoption across the country has managed to gain momentum in the UAE’s banking system as well, which has accelerated the need to construct data centers within their premises to store large chunks of customer data, including banking details and transaction histories. This provides better accessibility for UAE customers with low latency when using banking services, like mobile banking, internet banking, and other back-end transaction processing products, etc.

•

For instance: In 2021, HSBC Bank and Dubai Economy formed a Blockchain consortium to provide the exchange of verified (know your customer) data between licensiXX

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19

UAE Data Centers Market, By Competitors

(1/1)

Figure XX: UAE Data Centers Market Share (Percentage), By Competitors, 2020

IBM Corporation ($XX Million)

Microsoft Corporation ($XX Million)

 XX

 XX

 XX

 XX

Cisco ($XX Million)

Etisalat ($XX Million)

$XX Billion

 XX  XX

 XX  XX

Oracle Corporation ($XX Million)

Amazon Web Services ($XX Million)

 XX

 XX

 XX

 XX

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20

Dubai Data Centers Market Outlook, 2016-2026F

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21

Dubai Data Centers Market, By Revenues

(1/1)

Figure XX: Dubai Data Centers Market Revenues (USD Million), 2016- 2026F

CAGR

2016

2017

CAGR

Revenues: XX.XX%

2018

2019

2020

2021F

2022F

2023F

Revenues: XX.XX%

2024F

2025F

2026F

Revenue (USD Million) Source: MarkNtel Advisors

•

Dubai Data Centers Market has been experiencing a progressive growth rate with a CAGR of XX% during the historical period. The factors contributing to its growth have been the rising government’s IT expenditure in Dubai, increase in the count of smart projects, robust 5G infrastructure set up, among others.

•

The ICT initiatives led by the Dubai Government, such as Dubai 10X, Dubai Plan 2021, Internet of Things Strategy, Smart Dubai Office, among others, would require storing large chunks of information and accessing it with minimal latency. Due to this, there would be an elevation in the construction of new data centers in Dubai.

•

For instance: •

In Dubai's Internet of Things Strategy which was launched in 2017, the government aims to protect its digital wealth, encourage government departments to join the emirate’s smart transformation, and achieve the objectives of the Smart Dubai Plan 2021, including the transition to a 100% paperless government.

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22

Dubai Data Centers Market, By IT Infrastructure

(1/4)

Figure XX: Dubai Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By IT Infrastructure, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Server

2020

Storage

Network

2026

2020

2026F Server

Storage

Network

Overview •

XX

•

XX

•

XX

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23

Dubai Data Centers Market, By Electrical and Mechanical Infrastructure

(2/4)

Figure XX: Dubai Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By Electrical and Mechanical Infrastructure, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Cabling

2020

UPS

2026

Cooling Systems Others

2020 Cabling

2026F UPS

Cooling Systems

Others

Overview •

XX

•

XX

•

XX

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24

Dubai Data Centers Market, By Type

(3/4)

Figure XX: Dubai Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By Type, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Enterprise

2020

Colocation Cloud

2026

Edge

2020 Enterprise

2026F Colocation

Cloud

Edge

Overview •

XX

•

XX

•

XX

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25

Dubai Data Centers Market, By Tier Standards

(3/4)

Figure XX: Dubai Data Centers Revenue Share (Percentage) & Market Revenues (USD Million), By Tier Standards, 2016- 2026F Revenue Share (Percentage)

Market Size (USD Million), 2020-2026F

Tier I

2020

Tier II Tier III

2026

Tier IV

2020 Tier I

2026F Tier II

Tier III

Tier IV

Overview •

XX

•

XX

•

XX

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26

Dubai Data Centers Market, By End User

(3/4)

Figure XX: Dubai Data Centers Market Revenues (USD Million), By End User, 2016- 2026F 2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Banking, Financial Services and Insurance (BFSI)

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Telecommunication and IT

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Government

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Energy and Utility

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Health Care

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Others (Retail, Hospitality, Entertainment and Media)

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

•

XX

•

XX

•

XX

© 2021 | Reproduction is forbidden unless authorized | All Rights Reserved

27

Document Outline

02

Research Scope

12

Sample Illustration

36

Research Process & Methodology

45 47 49 © 2021 | Reproduction is forbidden unless authorized | All Rights Reserved

Report Particulars, Key Questions Answered, Market Segmentation, Table of Content

UAE Data Centers Market Analysis, 2021

Research Approach, Research Methodology

Commercials Company Profile About the Company

Disclaimer & Contact Details

28

Disclaimer •

MarkNtel Advisors LLP provides valuable market intelligence to an exclusive group of customers in response to orders. The report is licensed for the customer's internal use only and is subject to restrictions set henceforth. This document and its contents are confidential and may not be further distributed, published, or reproduced, in whole or in part, by any medium or in any form for any purpose, without the written consent of MarkNtel Advisors. The customer will not disclose the contents of the report, whether directly through any medium or indirectly through incorporation in a database, marketing list, report or otherwise, or use or permit the use of information to generate any statistical or other information that is or will be provided to third parties, or voluntarily produce information in legal proceedings.

•

Market reports are based on expectations, estimates and projections as of the date such information is available. Any recommendation contained in this report may not be suitable for all investors or

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businesses. The market conclusions drawn are necessarily based upon a number of estimates and assumptions that, while considered reasonable by MarkNtel Advisors as of the date of such statements, are inherently subject to market fluctuations and business, economic and competitive uncertainties, and contingencies

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