Market Trends of United Arab Emirates Data Center Power Industry
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.
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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.
