United Arab Emirates Data Center Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 152.80 Million |
| Market Size (2029) | USD 317.80 Million |
| CAGR (2024 - 2029) | 15.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Arab Emirates Data Center Power Market Analysis
The United Arab Emirates Data Center Power Market size is estimated at USD 152.80 million in 2024, and is expected to reach USD 317.80 million by 2029, growing at a CAGR of 15.40% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under construction IT load capacity: The upcoming IT load capacity of the United Arab Emirates data center rack market is expected to reach 840 MW by 2029. Mega data center type is expected to witness the highest growth during the forecast period in the UAE. Players invest in the mega system and contribute to its growth. For example, Moro Hub, a subsidiary of Dubai energy company DEWA, has started building a solar-powered data center. The 100MW power plant was announced in May 2021.
- Under construction raised floor space: The country's construction of raised floor area is expected to increase to 5.0 million sq. ft by 2029.
- Planned racks: The country's total number of racks to be installed is expected to reach above 2,50,000 units by 2029. Abu Dhabi is expected to house the maximum number of racks by 2029.
- Planned submarine cables: There are more than 27 submarine cable systems connecting the United Arab Emirates, and many are under construction. For instance, in March 2023, The Telecommunications Corporation (EITC) announced plans to connect the United Arab Emirates and Oman via a newly opened 275-kilometer international fiber optic submarine cable named Oman Emirates Gateway (OEG).
United Arab Emirates Data Center Power Market Trends
Switched PDU is Anticipated to be the Fastest Growing Segment
- Switched PDUs are important in remote deployments because they allow users to restart servers and restore service without physically visiting the data center site. It also helps users save energy and reduce costs by enabling them to turn off devices that are not in use. In the event of a utility power failure, non-essential loads can be shut down to maximize UPS uptime.
- More than 70% of all web traffic in the United Arab Emirates in 2023 was generated from mobile phones. The country's average mobile data internet speed in 2023 was about 86.8 Mbps. In the same year, 93% of the country's population were active mobile internet users. For many years, more than 50% of all web traffic in the United Arab Emirates had come from mobile devices. In 2023, mobile devices accounted for 58.51% of website traffic in the United Arab Emirates. Growth in data traffic consumption further stimulates the data center and data center power equipment supply market.
- A switched PDU is a type of smart rack PDU that can turn on or off single outlets or groups of outlets on the PDU. Switched PDUs allow users to remotely control devices and provide power in a specific order. It also allows users to delay the power-on sequence, which eliminates power sags and extends device life.
- Hyperscale demand is expected to come from telecom providers and cloud operators, followed by major e-commerce companies, public sector agencies, and the banking sector. One of the upcoming providers is Bridge Data Center. This DC type is catering its path in the United Arab Emirates, and players are investing in hyperscale facilities, creating demand for PDUs in the country.
- Switched PDUs with outlet metering help users monitor power consumption and available capacity. Easily understand actual power consumption at the device level, allowing users to compare efficiencies, improve capacity planning, increase utilization of existing resources, and allocate costs to specific customers or business units. The above-mentioned instances and benefits of switched PDU would accelerate the growth of the segment during the forecast period.
IT and Telecommunication is Anticipated to be the Largest Segment
- Efforts by the UAE government will create a competitive knowledge economy and a free, effective, efficient, and internationally integrated business environment to reduce dependence on oil revenues and expand the private sector. To increase the growth of the knowledge economy, the UAE government has implemented several measures.
- Dubai is subject to federal ICT legislation and is part of a unified national ICT infrastructure. The two companies, Etisalat and DU, serve the telecommunications market in Dubai as well as the rest of the UAE. UAE carriers have played and will continue to play a pivotal role in the country's adoption of big data, AI, and blockchain applications.
- In November 2022, G42 Cloud, a division of artificial intelligence company G42 in Abu Dhabi, and German software giant SAP signed an agreement to assist businesses in accelerating their digital transformation using cloud technology. As it portrays itself as a global innovation center, the UAE has long championed the crucial role that digital transformation plays in its economy and culture.
- UAE AI Strategy 2031 aims to improve productivity in transport, health, space, renewable energy, water, technology, education, environment, and transport as part of the government's goals toward the UAE's centenary in 2071. Emirates has already begun integrating AI in the education, healthcare, space, transport, and aviation sectors. The government's ambitious goals to diversify the economy and develop a knowledge-based economy include AI as an essential element.
- The other end-user segments are also expected to show significant growth. The rapidly increasing 4G penetration and the upcoming 5G wave are further motivating telecom vendors to invest in the UAE data center market. According to the Telecommunications Regulatory Authority (UAE), there were over 18.7 million active mobile phone subscribers in March 2023. The overall growth in the ICT sector would boost the country's DC facilities.
United Arab Emirates Data Center Power Industry Overview
The United Arab Emirates data center power market has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Cisco Systems Inc., are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- April 2024: Vertiv, a significant provider of critical digital infrastructure and continuity solutions, introduced the extension of the Vertiv Liebert GXT5 Lithium-Ion double-conversion, online uninterruptible power supply (UPS) system for 5kVA-10kVA Global Voltage (GV) (200V-240V; Default 230V) applications.
- January 2024: Caterpillar Inc. partnered with Microsoft and Ballard Power Systems to test the use of large-format hydrogen fuel cells as a reliable and eco-friendly backup power source for multi-megawatt data centers. Hydrogen fuel cells are seen as a possible low-carbon alternative to diesel backup generators, which is expected to drive the growth of DC generators.
United Arab Emirates Data Center Power Market Leaders
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ABB Ltd.
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Caterpillar Inc.
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Cummins Inc.
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Eaton Corporation
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Legrand Group
*Disclaimer: Major Players sorted in no particular order
United Arab Emirates Data Center Power Market News
- January 2024: Vertiv announced the plans to double its manufacturing capacity for busways, switchgear, and integrated modular solutions (IMS) by 2025. The expansion plans include increasing utilization and footprint in the United Arab Emirates, Ireland, South Carolina (United States), Mexico, Slovakia, and Northern Ireland.
- December 2023: Eaton Corporation announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It also combines with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.
United Arab Emirates Data Center Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
4.2.2 Increasing Demand to Reduce Operational Costs
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Power Infrastructure
5.1.1 Electrical Solution
5.1.1.1 UPS Systems
5.1.1.2 Generators
5.1.1.3 Power Distribution Solutions
5.1.1.3.1 PDU
5.1.1.3.2 Switchgear
5.1.1.3.3 Critical Power Distribution
5.1.1.3.4 Transfer Switches
5.1.1.3.5 Remote Power Panels
5.1.1.3.6 Others
5.1.2 Service
5.2 End User
5.2.1 IT and Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media and Entertainment
5.2.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Caterpillar Inc.
6.1.3 Cummins Inc.
6.1.4 Eaton Corporation
6.1.5 Legrand Group
6.1.6 Rolls-Royce PLC
6.1.7 Vertiv Group Corp.
6.1.8 Schneider Electric SE
6.1.9 Rittal GmbH & Co. KG
6.1.10 Fujitsu Limited
6.1.11 Cisco Systems Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
United Arab Emirates 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 tailored to the specific needs of data centers. 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 United Arab Emirates 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) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD million) 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 |
United Arab Emirates Data Center Power Market Research FAQs
How big is the United Arab Emirates Data Center Power Market?
The United Arab Emirates Data Center Power Market size is expected to reach USD 152.80 million in 2024 and grow at a CAGR of 15.40% to reach USD 317.80 million by 2029.
What is the current United Arab Emirates Data Center Power Market size?
In 2024, the United Arab Emirates Data Center Power Market size is expected to reach USD 152.80 million.
Who are the key players in United Arab Emirates Data Center Power Market?
ABB Ltd., Caterpillar Inc., Cummins Inc., Eaton Corporation and Legrand Group are the major companies operating in the United Arab Emirates Data Center Power Market.
What years does this United Arab Emirates Data Center Power Market cover, and what was the market size in 2023?
In 2023, the United Arab Emirates Data Center Power Market size was estimated at USD 129.27 million. The report covers the United Arab Emirates Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Arab Emirates Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Arab Emirates Data Center Power Industry Report
Statistics for the 2024 United Arab Emirates Data Center Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Arab Emirates Data Center Power analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
