UAE Data Center Server - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

UAE Data Center Server - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

The United Arab Emirates data center server market reached a value of USD 845 million in the previous year, and it is further projected to register a CAGR of 17.5% during the forecast period. 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.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the United Arab Emirates data center market is expected to reach more than 800 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 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 and Dubai are expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 27 submarine cable systems connecting United Arab Emirates, and many are under construction.

UAE Data Center Server Market Trends

Blade Servers To Grow At A Faster Pace In The Coming Years

• Blade servers are often used for huge processing data, but they also produce a lot of heat. These tend to be more expensive than rack or tower servers and require proper humidity and cooling infrastructure to run efficiently without damaging the hardware.
• Blade servers are installed in server bays, not in racks. This structure allows more servers to be installed in a smaller area. For example, a rack may only hold 10 rack servers, but a blade bay can hold 20 blade servers. The blade chassis can still be rack mounted, but more blade servers can fit in the same space compared to rack servers.
• To cater to end-user needs, the top companies are focusing on blade servers in data centers. The growing adoption of technologies such as cloud computing, artificial intelligence (AI), and IT services by businesses is propelling the use of servers in data centers.
• E-commerce sales in the UAE expanded at an annual rate of 23% between 2018 and 2022. The COVID-19 pandemic hastened the country's digital transformation and positioned it as an e-commerce leader among Gulf Cooperation Council (GCC) countries; in 2019, the UAE's online shopping generated USD 2.6 billion in sales, and it grew by 53% in 2020, reaching USD 3.9 billion in sales before rising to USD 4.8 billion in 2021, representing an 84.6% increase over the previous two years.

IT & Telecommunication Is The Largest Market In The Country

• A major center of international trade and business in the Middle East/ North Africa MENA region, the UAE is a highly competitive information and communication technology (ICT) market. The UAE government's efforts to reduce its dependence on oil revenues and expand the private sector are aimed at building an attractive knowledge economy and a no-cost, effective, efficient, and globally integrated business environment to promote the growth of the knowledge-based economy.
• Dubai, one of the seven emirates of the United Arab Emirates, is subject to the Federal ICT Act and is part of a unified national ICT infrastructure. Etisalat and DU serve the telecommunications market in Dubai and the rest of the UAE. UAE telecom providers have played and will continue to play a pivotal role in adopting big data, blockchain technology, and artificial intelligence (AI) applications in the country.
• Key market players have entered strategic partnerships to accelerate their business using cloud technologies. 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. Due to rising data consumption and changing economic and societal landscapes that are increasingly digital, cloud technology is being widely adopted in the UAE.
• The UAE is the first country in the Arab world and the fourth in the world to launch a 5G network. Du and Etisalat, the country's largest carrier, rolled out a limited 5G network in 2019, making the ZTE Axon 10 Pro 5G-enabled smartphone available to postpaid and prepaid customers. Due to the UAE's technology leadership and high GDP per capita, demand for 5G services is expected to increase in the coming years.

UAE Data Center Server Industry Overview

The United Arab Emirates data center server market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as Dell Inc., International Business Machines (IBM) Corporation, Hewlett Packard Enterprise (HPE), Lenovo Group Limited, and Cisco Systems Inc., currently dominate the market.

In August 2023, Dell, Intel, and VMware offered an updated ReadyNode infrastructure solution called vSAN 8.0 with Express Storage Architecture (ESA). This release includes performance and efficiency improvements to meet customers' evolving data center needs.

In August 2023, Hewlett Packard Enterprise announced that global IT services provider phoenixNAP is expanding its bare metal cloud platform with cloud-native HPE ProLiant RL300 Gen11 servers powered by energy-efficient processors from Ampere Computing.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support