Technavio says data center construction market in GCC worth $5.77 billion by 2020

Renewable energy


Data center construction: Key market research findings

  • Emergence of modern data center designs
  • Growing importance of business insights

Technavio has released a new market research report on the data center construction market in GCC, which is expected to grow at a CAGR of 20% by 2020. The demand for cloud-based services and the growth of the Internet of Things (IoT) are prompting enterprises in the GCC to construct data centers to gain a competitive edge. Moreover, the organizations in this region are aiming to develop green data center facilities to reduce power consumption and carbon dioxide emissions. Several countries in GCC like Dubai, Abu Dhabi, Riyadh, and Qatar are epected to witness huge increase in the construction of data centers.

The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.

“The number of new data center constructions is growing rapidly in the GCC as the global colocation providers are constructing data centers across the region. The GCC data center market is witnessing several technological innovations in data center technology. Advanced designs reduce the power usage in data centers and enhance their cooling mechanisms. Moreover, enterprises are also focusing on building green data centers,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research

Growing awareness regarding the importance of business insights will prompt enterprises in the GCC to enhance their analytics technologies in the coming years. The enterprises are expected to shift their focus toward data warehousing and data visualization. Big data analytics will also help enterprises derive new insights on end-users and products, and realize a better ROI. Cloud-based big data adoption is also projected to increase over the forecast period, and this development will pave the way for data center construction across cities such as Dubai and Abu Dhabi, and countries such as Kuwait and Qatar.

The key vendors in the data center construction market in GCC include Arup Associates, Data Center Technologies – Gulf, Drake & Scull International, Edarat, ISG and McLaren Construction. The competition among existing vendors is moderate. Moreover, the number of local vendors is expected to increase during the forecast period.

A more detailed analysis is available in the Technavio report, Data Center Construction Market in GCC 2016-2020.

We can customize reports by other regions and specific segments upon request.

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