A data center is a facility businesses use for storing their crucial data & applications. This facility offers shared access through complex networks & storage infrastructure and ensures that the data is highly secure & available.
The UAE Data Center Market is anticipated to grow at a CAGR of around 4.1% during the forecast period, i.e., 2021-26, says MarkNtel Advisors. The market growth ascribes to the mounting number of smart city development projects, coupled with rapid digitalization in government services. Additionally, 5G infrastructure deployment and expanding size of the commercial industry requiring to set up their data centers in the country shall further augment the market growth. The shift in the country's focus from being oil-dependent to becoming the regional IT hub is another crucial aspect likely to boost the demand for data centers in the UAE.
UAE Federal Law No. (2) of 2019 (the Health Data Protection Law) states that entities processing data related to healthcare must comply with the new legislation, i.e., establishing a central system (data center) to store, exchange, & collect healthcare data. Also, it has imposed fines for breaches of up to USD 272,259.
Moreover, the country has been proactive in integrating advanced technologies, such as Artificial Intelligence (AI), Machine Learning (ML), Blockchain, Green Finance, 5G, etc., in spaces like financial services, healthcare, transportation, manufacturing, and storage among other industries. Therefore, the need for data centers is significantly increasing in UAE, further states the research report, “UAE Data Center Market Analysis, 2021.”
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 4.1% |
| Regions Covered | Dubai, Abu Dhabi, Sharjah & Northern Emirates |
| Key Companies Profiled | Khazna, Etisalat, Equinix, Oracle, Alibaba Cloud, Microsoft Azure, IBM, Amazon Web Services, MBUZZ, and Cisco |
| Unit Denominations | USD Million/Billion |
COVID-19 Outbreak Positively Impacted the UAE Data Center Market
In March 2020, as the Covid-19 pandemic rapidly became a global crisis, most organizations immediately enabled complete Work from Home for all employees to ensure their safety. Due to the restrictions amidst the pandemic, routine business operations of most organizations got adversely affected.
The snowballing adoption of Cloud, Big Data, and IoT (Internet of Things) in the wake of the COVID-19 pandemic has increased the demand for efficient data centers to support storage of & access to a large amount of data through Cloud and Video Conferencing.
Hence, with the surging need to bolster IT performance, flexibility, and security amongst organizations in UAE, the Data Center Market is growing faster than predicted during the pandemic and is expected to grow more significantly in the coming years.
