Market Size of Middle East Data Center Power Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.58 Billion |
| Market Size (2029) | USD 1.12 Billion |
| CAGR (2024 - 2029) | 12.70 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Middle East Data Center Power Market Analysis
The Middle East Data Center Power Market size is estimated at USD 0.58 billion in 2024, and is expected to reach USD 1.12 billion by 2029, growing at a CAGR of 12.70% during the forecast period (2024-2029).
The exponential growth of data has led to a massive increase in electrical power usage within data centers. In 2022, as per the Energy Institute, the consumption of primary energy in the Middle East amounted to approximately 39.13 exajoules, an increase of around 4.3% in comparison to the previous year. Operators are seeking more energy-efficient technological equipment to ensure optimum operation while minimizing energy consumption. In countries such as the United Arab Emirates, the government has pledged to cut emissions as part of its global commitment to tackle climate change. Overall, the demand for renewable power solutions is expected to increase.
- The upcoming IT load capacity of the Middle Eastern data center construction market is expected to reach 2,059.5 MW by 2029.
- The region's construction of raised floor area is expected to increase by 9.7 million sq. ft by 2029.
- The region's total number of racks to be installed is expected to reach 496 K units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029.
- There are close to 26 submarine cable systems connecting the Middle East, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Blue, which stretches over 4,696 km with a landing point in Tel Aviv.
Middle East Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The Middle Eastern data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service), end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users), and country (Saudi Arabia, United Arab Emirates, and Israel). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Power Infrastructure | ||||||||||||
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| Service |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
| Country | |
| Saudi Arabia | |
| United Arab Emirates | |
| Israel |
Middle East Data Center Power Market Size Summary
The Middle East data center power market is experiencing significant growth, driven by the increasing demand for data storage and processing capabilities. This expansion is fueled by the rapid digital transformation across the region, with countries like the United Arab Emirates and Saudi Arabia leading the charge. The market is characterized by a shift towards energy-efficient technologies and renewable power solutions, as operators seek to optimize energy consumption and reduce carbon emissions. The construction of new data centers, coupled with the expansion of existing facilities, is expected to further boost the demand for power solutions. Key players in the market, such as Delta Power Solutions, Vertiv Group Corp., and Eaton Corporation, are focusing on strategic collaborations and innovative product offerings to enhance their market presence and cater to the evolving needs of the industry.
The telecommunications sector plays a crucial role in the data center power market, with telecom data centers requiring high connectivity to support mobile and cloud services. The adoption of direct current power systems in these centers allows for easier expansion as demand increases, particularly with the rollout of 5G technology. Investments from cloud service providers like Google and Oracle are also contributing to the market's growth, as they establish data centers to support their services. The United Arab Emirates is witnessing a surge in digital banking and internet penetration, further driving the need for data center infrastructure. Initiatives to explore cleaner energy sources, such as solar-powered data centers, are gaining traction, reflecting the region's commitment to sustainability. Overall, the Middle East data center power market is poised for substantial growth, supported by technological advancements and strategic investments.
Middle East Data Center Power Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
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1.2.2 Increasing Demand to Reduce Operational Costs
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1.3 Market Restraints
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1.3.1 High Cost of Installation and Maintenance
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Power Infrastructure
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2.1.1 Electrical Solution
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2.1.1.1 UPS Systems
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2.1.1.2 Generators
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2.1.1.3 Power Distribution Solutions
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2.1.1.3.1 PDU
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2.1.1.3.2 Switchgear
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2.1.1.3.3 Critical Power Distribution
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2.1.1.3.4 Transfer Switches
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2.1.1.3.5 Remote Power Panels
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2.1.1.3.6 Others
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2.1.2 Service
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2.2 End User
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2.2.1 IT and Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media and Entertainment
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2.2.5 Other End Users
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2.3 Country
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2.3.1 Saudi Arabia
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2.3.2 United Arab Emirates
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2.3.3 Israel
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Middle East Data Center Power Market Size FAQs
How big is the Middle East Data Center Power Market?
The Middle East Data Center Power Market size is expected to reach USD 0.58 billion in 2024 and grow at a CAGR of 12.70% to reach USD 1.12 billion by 2029.
What is the current Middle East Data Center Power Market size?
In 2024, the Middle East Data Center Power Market size is expected to reach USD 0.58 billion.
