Market Trends of Middle East Data Center Physical Security Industry
The IT and Telecom Segment is expected to Hold a Significant Share
- IT players are increasingly concerned about the physical security of data centers when transitioning to third-party facilities, even as the industry moves away from on-premise setups towards colocation and cloud services. Telecom data centers typically owned and operated by major players like Deutsche Telekom AG, Verizon, or AT&T, are essential in content delivery and supporting mobile and cloud services, necessitating top-tier connectivity and security.
- FOSS LLC, a prominent systems integrator in the UAE, has observed a significant rise in customer demands for physical security and CCTV solutions. This increase is largely attributed to a growing emphasis on safety and security. Notably, advancements in IP-based CCTV systems and software-driven analytics have introduced "intelligent" solutions, reducing the need for constant human monitoring in telecom data centers.
- With rising data traffic and networking needs, the United Arab Emirates is experiencing a rise in telecommunication data centers. As the deployment of 5G technology progresses, the demand for secure telecom data centers is expected to increase.
- In July 2023, Saudi Telecom's (STC) subsidiary, Center3, expanded its data center in Riyadh. STC is increasing capacities in its existing Riyadh and Jeddah facilities and developing new data centers across key cities like Jeddah, Riyadh, and Dammam, highlighting the Kingdom's growing data infrastructure.
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The United Arab Emirates is Expected to Hold Significant Growth
- The UAE's data center landscape is experiencing increased investments, driven by the rising adoption of 4G and the imminent 5G revolution. The Telecommunications Regulatory Authority (UAE) reported 18.7 million active mobile subscribers in the UAE as of March 2022.
- BIOS Middle East Group provides access security solutions for UAE data centers. Their measures include limiting physical access to authorized personnel, supported by on-premise security systems. These systems utilize biometric, card key, and coded entry controls. Regular reviews of access logs ensure ongoing security.
- As cloud startups drive a boom in data center construction, the UAE's demand for access control solutions is expected to rise. The country has approximately 1,171 SaaS startups, including TruKKer, G42, and Alaan.
- The UAE's telecoms authority has set a target of achieving 100% 5G penetration by 2025, indicating a significant data center expansion for telecom providers. Notably, security threats like insider breaches often stem from physical network access, highlighting the growing need for robust data center physical security measures.
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