UAE Data Center Power Market Expands to Touch USD 1.9 Billion by 2029

Published | 14 February 2023

UAE data center power market is flourishing owing to a growing demand for cloud storage and rapidly exploding amount of data, deepening penetration of social media and smartphones, and the growing need for businesses to migrate from server room environments to data centers.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent report, revealed that the UAE data center power market size was estimated at USD 1.16 billion in 2022. During the forecast period between 2023 and 2029, the UAE data center power market size is projected to grow at a CAGR of 7.24% reaching a value of USD 1.88 billion by 2029. Growing cloud storage demand and an increase in data volume in the UAE are two major growth drivers for the data center power market in the country. The rise in the introduction of cutting-edge systems to reduce power consumption as well as the emergence of modular data centers is predicted to fuel market expansion. Increasing smartphone adoption and social media usage, and an increasing demand for businesses to switch from server room settings to data centers are all contributing factors.

UAE Data Center Power Market – Overview

A data center is a standalone structure built within a building that houses computing hardware like servers along with other elements like network, storage, and telecommunications systems. Every organization that generates or uses data, including government agencies, educational institutions, financial institutions, retailers of all sizes, providers of online information, and social networking services, need data centers. Due to the frequent conversion of AC to DC or vice versa, both alternating current (AC) and direct current (DC) power will likely be used in every data center.

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Opportunity: Voluminous Data Generation Driving Demand for Data Centers with Uninterrupted Power Supply

The rapidly expanding data generation is one of the primary factors driving the industry's growth. The widespread use of machine-to-machine, embedded, and IoT devices is the main factor driving the increase in data generation. Other sources include pictures and videos, information for amusement and practical uses like security and advertising, as well as productivity-driven data like the log files on servers and computer systems. Businesses use this information to enhance their goods and services, maintain good customer relations, and boost profitability.

Challenge: Substantial upfront costs

Businesses face significant obstacles because of the high initial investment required in the market for data center power. To implement modern power systems in data centers, it is necessary to switch from antiquated to contemporary data center components. This shit requires labor, new hardware and software installation, and infrastructure upgrades. This transition process calls for a large initial investment. Most companies, including SMEs with limited capital, frequently find themselves unable to update their data centers due to this requirement. Energy-efficient power solutions are significantly more expensive to implement initially compared to conventional power solutions, which require a smaller initial investment.

Impact of COVID-19 on UAE Data Center Power Market

Due to the global ban on offline activities, the COVID-19 pandemic had a significant impact on the UAE data center power industry, particularly organizations. However, the need for software as a service (SaaS) and working from home during the pandemic is driving the demand for data centers. During the COVID-19 pandemic, the data center's capacity was crucial because more people and businesses around the world needed to consume more data. The pandemic increased the availability of trustworthy and reachable data centers on a global scale.

UAE Data Center Power Market – By End User

The UAE data center power market is divided into four categories based on the end user: enterprises, colocation providers, cloud providers, and hyper-scale data centers. Due to factors like an increase in cloud storage solutions among industries, compression of the physical infrastructure for traditional data security, an increase in computing assistance, and high scalability, the market for cloud providers is anticipated to see significant growth during the forecast period.

Competitive Landscape

UAE data center power market is fiercely competitive, with Schneider Electric, Verde, ABB, Eaton, Delta Electronics, Huawei, Legrand, Tripp Lite, Toshiba, and Siemens. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the UAE data center power market.

Don’t miss the business opportunity in the UAE Data Center Power Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of UAE Data Center Power Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in UAE Data Center Power Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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