The European Data Centre Market
01 May, 2024
In our increasingly digital world, data centers serve as the backbone of the global internet. They provide essential storage, processing, and distribution capabilities for the vast and ever-expanding volume of data generated daily. According to a report by Dell’Oro Group, global data center capital expenditures (CapEx) are predicted to surpass a staggering $500 billion by 2027, largely driven by investments in AI infrastructure. However, short-term growth in cloud and enterprise CapEx is expected to decelerate due to market adjustments.
Hyperscale cloud service providers are poised to play a pivotal role in future data center growth. Significant investments are anticipated in accelerated systems for AI applications. Optimization efforts will focus on the entire data center stack, including next-generation servers with high-core counts and deeper memory.
The Middle East, steeped in rich tradition, is making significant strides in data center construction. Countries like Saudi Arabia, the UAE, Bahrain, Oman, Kuwait, and Turkey are leading the way. Smart city initiatives and the growing need for data processing and storage are driving demand. The deployment of seven new submarine cables between 2023 and 2028 will further boost data center requirements.
Market projections indicate that the Middle East data center construction market, valued at $1.84 billion in 2022, will reach $2.86 billion by 2028, with a healthy compound annual growth rate (CAGR) of 7.59%. The United Arab Emirates and Saudi Arabia contribute significantly, representing about 30% and 27% of capacity, respectively. Investments in cloud-based services and smart city development are key growth drivers.
Telecom giants such as Ericsson, stc, Turk Telecom, Cellcom, Zain, Nokia, Vodafone, Ooredoo, du, and Omantel are actively deploying 5G services in the region. This rollout further accelerates the demand for robust data center infrastructure.
Middle Eastern businesses are following global trends by shifting workloads to cloud platforms. Amazon Web Services, Google Cloud, and Microsoft Azure have established significant regional presence. Cloud investments underscore the critical role of data centers in supporting digital transformation.
As the Middle East embraces digital transformation, data centers remain at the forefront of technological progress. With substantial investments, smart city initiatives, and 5G expansion, the region is poised for continued growth in data center infrastructure. However, security remains paramount to ensure data centres remain safe, as highlighted by tech website Edge "Security and risk mitigation are paramount in the Middle East’s geopolitical landscape. Ensuring the physical security of data centres requires implementing robust access control measures, advanced surveillance systems, and comprehensive emergency response plans to mitigate the risk of unauthorised access or sabotage."
We are seeing many roles being recruited for within the data centre market in the Middle East.
Some of the key data centre jobs we are recruiting for:
- Business Development Manager
- Technical Director
- Head of IT & Networks (Data Centres)
- Construction Project Engineer
Latest Middle Eastern Investment News in the Data Centre Market
- Equinix acquires 24 data centre sites in $3.6bn deal
- Nvdia and Ooredoo launch data centre deal
- Freshworks launches new Data Center in UAE
Should you want to know more about our recruitment services within Data Centres in the Middle East or the Middle East data centre jobs we are recruiting, contact us here.
