GCC Data Center Market

Market Overview

The GCC data center market size reached US$ 1.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 14.5 Billion by 2032, exhibiting a growth rate (CAGR) of 16.9% during 2024-2032.

A data center refers to a centralized facility that is utilized by organizations for retrieving, storing, and processing physical and virtual data. It primarily consists of power distribution units, switches, servers, chips, and firewalls. The infrastructure also includes external networking and communication systems, external and backup power systems, cabling systems, environmental controls, and security systems. A data center is available in various sizes, ranging from small rooms to huge multi-warehouse complexes. The IT activities of an organization revolve around its data center. It serves as a central location for many business-critical systems, processing, and user distribution of the majority of corporate data. A data center is beneficial for processing Big Data, powering Machine Learning, and Artificial Intelligence since it is intended to manage massive amounts of data and traffic with minimal latency. As a result, it is widely used across several verticals, such as manufacturing, transportation, retail, government, information technology (IT) and telecommunication, banking, financial services, and insurance (BFSI), energy, healthcare, etc.

The expanding information technology (IT) sector and the increasing penetration of hybrid- and multi-cloud architecture solutions are primarily driving the market. In addition to this, the escalating demand for automated solutions and reduced latency in data transfers amid the rising popularity of smart devices is further creating a positive outlook for the regional market. Moreover, the growing volumes of data from over-the-top (OTT) services and social media platforms have generated an inflating need for reliable data centers, which, in turn, is also propelling the market growth. Besides this, major oil companies in the GCC region are integrating smart technology, such as control systems and sensors, and implementing Big Data and analytics technologies in their oilfields. This, in turn, is further bolstering the regional market. Additionally, the increasing emphasis on the construction of green data centers is acting as another significant growth-inducing factor. Green data centers utilize low-emission building materials that assist in creating sustainable ecosystems and ensure efficient waste recycling. Furthermore, the emerging popularity of solution delivery models such as built-to-suit and pay-per-use is also augmenting the market growth. Apart from this, several countries in the GCC region have successfully established comprehensive cloud computing frameworks that regulate issues pertaining to data utilization, data gathering, and data sharing, which, in turn, is further positively influencing the regional market. Numerous other factors, including the widespread adoption of network upgrades to support 5G, increased government support for the digital economy, migration from on-premise infrastructure to colocation and managed services, etc., are expected to drive the market in the coming years.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market report, along with forecasts at the regional and country level from 2024-2032. Our report has categorized the market based on application, type, component, and size.

Regional Insights:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman

The report has also provided a comprehensive analysis of all the major regional markets that include the Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman. According to the report, the UAE was the largest market for data center. Some of the factors driving the UAE data center market included expanding information technology (IT) sector, increasing penetration of hybrid- and multi-cloud architecture solutions, escalating demand for automated solutions for data transfer, etc. For each of the countries covered, the report provides historical and current market trends, market drivers, market segmentation, key players, and market forecast.

Application Insights:

• Banking Financial Services & Insurance (BFSI)
• Government
• IT and Telecom
• Media
• Retail
• Manufacturing
• Others

The report has also provided a detailed breakup and analysis of the market based on the application. This includes banking financial services & insurance (BFSI), government, IT and telecom, media, retail, manufacturing, and others. According to the report, IT and telecom represented the largest segment.

Type Insights

• Enterprise Data Centers
• Colocation Data Centers
• Edge Data Centers
• Hyperscale Data Centers

A detailed breakup and analysis of the market based on the type has also been provided in the report. This includes enterprise data centers, colocation data centers, edge data centers, and hyperscale data centers. According to the report, colocation data centers accounted for the highest market share.

Component Insights

• Hardware
• Software
• Service

The report has also provided an exhaustive breakup and analysis of the market based on the component. This includes hardware, software and service. According to the report, hardware accounted for the highest market share.

Size Insights

• Small Data Center
• Mid-Size Data Center
• Large Data Center

The report has also provided an exhaustive breakup and analysis of the market based on the size. This includes small data center, mid-size data center, and large data center. According to the report, large data center accounted for the highest market share.

Competitive Landscape

The report has also provided a comprehensive analysis of the competitive landscape in the market. This includes market structure, market player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant. Detailed profiles of all major companies have also been provided. Some of the companies covered include Amazon Web Services, Inc., Equinix, Inc., Etisalat, Khazna, Microsoft , etc. Kindly, note that this only represents a partial list of companies, and the complete list has been provided in the report. For each of the companies covered, the report provides business overview, services offered, business strategies, financials, SWOT analysis, and major news and events.

Report Coverage: