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Data Centre Middle East 2017 to 2020 Report

Data Centre Middle East 2017 to 2020 Report

Market Study
Published: September 2017
Pages: 90
Research from: Telecom Pricing
Sector: Information & Communications Technology

From: GBP 1595.00
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The 2017 Data Centre Middle East report is an extensively revised report from last year’s DataCentrePricing.Com Data Centre Middle East – 2016 report, published in early 2016.

The Middle East region is an increasingly important market for Data Centre providers, and continues to see growth in the development of new Data Centre facilities in the six Gulf States of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.


The report reveals that new Data Centre facilities in the region continue to be constructed for three key reasons:


a) To support Government initiatives - including the creation of a National Data Centre, as part of an overall national IT or economic development plan
b) To expand Telecoms Provider services – with Telecoms Providers expanding their colocation, hosting or cloud services using new highly connected Data Centre facilities
c) To provide Data Centre facilities for IT services - in order to offer additional IT services and 3rd party outsourcing services including cloud & application services.

In this report, DataCentrePricing.Com has identified some 32 Data Centre providers with some 70 Data Centre facilities across the six Gulf State countries surveyed in the Middle East region.


From the 32 Data Centre providers identified by DataCentrePricing.Com in the Gulf States region, the majority (54% by the total number of facilities) - are using a telecoms-based business model.


Figure  – A table showing the breakdown of third party Data Centre Providers & Facilities in the six Gulf States as of the end of 2017


                           Number of Data Centres              Number of facilities


Bahrain                         x                                                      x
Kuwait                           x                                                      x
Oman                            x                                                      x
Qatar                             x                                                      x
Saudi Arabia                x                                                      x
UAE                              x                                                      x
Total                             32                                                   70




The report covers:
Average pricing (rack space and m2 space)
Profile on each country and details on the players in the markets
Profiles of 10 Key Data Centre
The Data Centre ecosystem,
DCCP power
Data Centre raised floor space
and a forecast  end 2017 to 2020 for each of the six Gulf States


DataCentrePricing.Com’s latest Middle East Data Centre 2017 to 2020 report finds that Data Centre Providers in the six Gulf States (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia & the UAE) are reducing investment in new Data Centres in favour of expanding their existing Data Centre facilities.  

In the report DataCentrePricing.Com has identified 32 third party Data Centre Providers with 70 Data Centre facilities in the six Gulf States, with the majority of facilities located in Saudia Arabia and the UAE. The two countries of Saudi Arabia and the UAE account for almost two-thirds of Data Centre raised floor space and Data Centre Customer Power (DCCP) in the region.

Over the past year there has been selected expansion of existing Data Centre facilities with additional space and power – and also monitoring capabilities – in the region. Data Centre Providers including Batelco Data Centre (Bahrain), Ooredoo Data Centre (Qatar), Integrated Technology Co (ITC - Saudi Arabia) and Equinix (UAE).

But the Gulf States have also seen the expansion of the Global Cloud Service Providers - with IBM Cloud, Oracle Cloud and Alibaba Cloud establishing cloud nodes in the region. AWS (Amazon Web Services) has opened sales offices in Dubai (UAE) and Manama (Bahrain). Local cloud providers are also offering cloud services, typically reselling Microsoft Cloud, Google Cloud and AWS Cloud services.

The Middle East region is seeing growth in other parts of the IT ecosystem, with Governments in Oman and Qatar investing in national Fibre Broadband projects with some also trialing cloud hosting as part of an eGovernment initiative for selected Government departments.

Although the fall in the global oil price has reduced the number of new-build Data Centre projects in the Middle East region, some Data Centre Providers believe that the squeeze on capital intensive Data Centre build-outs is assisting the growth in third party hosting services from both enterprises and Government departments for the first time – with hosted IT & cloud gaining acceptance.

DataCentrePricing.Com finds that Rackspace and m2 space rentals in the region remain high – with standard Rackspace ranging from over USD $1,000 to USD $1,200 per month (without power). The high cost of local in-country fibre services can be a significant barrier to providing connectivity between Data Centre facilities in the Gulf States – with monthly rentals being significantly higher than in Europe or Asia.   

Overall the new DataCentrePricing.Com report finds that the Gulf State countries are undergoing a period of transition, as capital spending is reduced more efficiency is being sought from existing IT assets, and is spurring the use of cloud services as well as third party Data Centre facilities.

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