Central Asia Data Center Market - Industry Outlook & Forecast 2023-2028

Central Asia Data Center Market - Industry Outlook & Forecast 2023-2028

The Central Asia data center market is expected to grow at a CAGR of 18.47% from 2022 to 2028.

KEY TRENDS

5G Deployment to Boost Edge Data Center Development

• Armenia, Azerbaijan, Uzbekistan, Kazakhstan, and other countries in the region, have emerged as the major economies to adopt and deploy 5G technology.
• Azercell, a telecom operator based in Azerbaijan, announced the successful internal testing for 5G technology, and the company is likely to deploy 5G services soon across the country.
• Mobiuz, a telecom operator based in Uzbekistan, announced the launch of its 5G services in the capital city, Tashkent. However, Ucell was the first telecom company in Uzbekistan to launch 5G services in 2022, for which Huawei Technologies supplied the equipment. 5G services were initially launched in Tashkent's business district.

Improvement in Inland and Network Connectivity

• Investments in submarine cables in Central Asia are limited because all countries are landlocked and surrounded by each other. However, Georgia is the only country in the region with submarine connectivity, with two operational submarine cables connecting the country with Bulgaria and Russia.
• The government and enterprises in various countries have continuously been strengthening fiber infrastructure for better connectivity with other countries over the years. Several telecommunication providers are investing in improving network connectivity within the country. In January 2023, Uzbektelecom, a telecom company based in Uzbekistan, signed a new contract with NEC, Internet Initiative Japan (IIJ), Toyota Tsusho Corporation, and NTT Communications to supply the equipment for expanding their telecom networks and connectivity across the country.

The Increase in Data Center Investments

The Central Asia data center market reels under the undersaturation phase, which will likely pace up in the upcoming 2–3 years owing to increased social & internet penetration and digitalization across the region. DataDome, a construction company, announced its plan to develop a new facility in Bishkek, Kyrgyzstan, for DataTime. The facility will host around 100 rack cabinets with a power capacity of 500 kW.

SEGMENTATION INSIGHTS

• The adoption of VRLA batteries in the UPS systems is dominant in the Central Asia data center market. Operators still adopt VRLA batteries in the region. Modular UPSs are likely to gain traction during the forecast period.
• Due to the scarcity of water and cooling resources, data centers in Central Asia use air-based cooling techniques in data centers. Only a few facilities are available for free and water-based cooling.

Segmentation by Infrastructure Investment

• UPS Systems
• Cooling Systems
• Racks
• Power Distribution Units (PDUs)
• Investment in Other Accessories

GEOGRAPHICAL ANALYSIS

• Kazakhstan is considered a prime location for data center development in the Central Asia data center market. Kazakhstan is also among the major hub for crypto mining, making it the second-largest market after the United States. The industry is among the prime hubs for crypto mining data centers due to the availability of cheap power.
• Uzbekistan is an emerging data center market in Central Asia and is also a largely populated country in the region. Metrotelecom and the internet exchange provider, ITI-IX, opened two data center facilities - ITI-IX T252 and ITI-IX T233.

Segmentation by Geography

• Armenia
• Azerbaijan
• Georgia
• Kazakhstan
• Kyrgyzstan
• Mongolia
• Tajikistan
• Turkmenistan
• Uzbekistan

VENDOR LANDSCAPE

• The market has the presence of several participants/vendors that are active in the Central Asia data center market. However, most infrastructure operators have a presence through several resellers and distributors.
• Some infrastructure providers active in the Central Asia data center market include ABB, Caterpillar, Cummins, Eaton, Hewlett Packard Enterprise (HPE), Legrand, Schneider Electric, Vertiv, STULZ, and others.

VENDOR LANDSCAPE

Prominent Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Eaton
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
• Legrand
• Mitsubishi Corporation
• Rittal
• Schneider Electric
• STULZ
• Vertiv

Other Infrastructure Providers

• Alfa Laval
• Assa Abloy
• Carrier
• Condair
• Generac Power Systems
• Johnson Controls
• Panduit
• Piller Power Systems
• Riello UPS
• Siemens
• Socomec
• Trane (Ingersoll Rand)

Construction Contractors & Subcontractors

• AECOM
• Arup
• DataDome
• Fluor Corporation
• KKCG Group
• Tetra Tech

Data Center Investors

• AzInTelecom
• DataPro
• Kazteleport
• QazCloud
• Rostelecom
• Transtelecom
• Uzbektelecom

KEY QUESTIONS ANSWERED:

1. How big is the Central Asia data center market?

2. What is the growth rate of the Central Asia data center market?

3. What is the estimated market size in terms of area in the Central Asia data center market by 2028?

4. What are the key trends in the Central Asia data center market?

5. How many MW of power capacity is expected to reach the Central Asia data center market by 2028?