Middle East Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 1.03 Thousand MW |
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Market Volume (2029) | 2.06 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 14.80 % |
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Largest Share by Country | United Arab Emirates |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Middle East Data Center Market Analysis
The Middle East Data Center Market size is estimated at 1.03 thousand MW in 2024, and is expected to reach 2.06 thousand MW by 2029, growing at a CAGR of 14.80%. Further, the market is expected to generate colocation revenue of USD 12,365.7 Million in 2024 and is projected to reach USD 28,385.3 Million by 2029, growing at a CAGR of 18.08% during the forecast period (2024-2029).
USD 12,365.68 Million
Market Size in 2024
USD 28,385.3 Million
Market Size in 2029
10.9%
CAGR (2017-2023)
18.1%
CAGR (2024-2029)
IT Load Capacity
1,033 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to achieve 2,059.5 MW by 2029. The region is witnessing planned expansion in the massive and large segments across all types of DCs.
Total Raised Floor Space
Sq. Ft. 4.57 M
Volume, Raised Floor Space, 2024
The total raised floor area in the region is expected to increase to 9.7 million sq. ft by 2029. Rising adoption of smart devices for home automation, growing demand for digitalization applications would accelerate the data centers market.
Installed Racks
228745
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 496,769 units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029. In January 2022, Saudi Arabia had 34.84 million internet users and growing in coming years.
# of DC Operators & DC Facilities
59 and 153
Volume, DC Facilities, 2024
There are 153 colocation data center facilities in the Middle East. The development of fiber connectivity, increasing power supply, and high demand for data center services from end users are increasing DC construction in the region.
Leading Market Player
18.6%
Market Share, Etihad Etisalat Company (Mobily), 2023
Etihad Etisalat Company (Mobily) has the highest market share of 18.6% in the data center market. The company currently operates at an IT load capacity of 168.3 MW and is expected to increase its capacity during the forecast period.
Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period
- The tier 3 segment currently holds the majority of the market share in the Middle East due to the significant advantages of its features. These tiers have a high level of redundancy and multiple power and cooling paths. The tier 3 data centers have an uptime of around 99.982%, resulting in 1.6 hours of downtime per year. With the increased adoption of edge and cloud connectivity, the tier 3 segment is expected to grow further.
- The tier 3 segment of the Middle Eastern market operated at an IT load capacity of 464.68 MW in 2022. During the forecast period (2022-2029), the IT load capacity is expected to grow from 621.78 MW in 2023 to 1,214.86 MW in 2029, with a CAGR of 11.81%.
- The tier 4 segment is expected to record the fastest CAGR of 26.51%. Several developing countries are focusing on getting Tier 4 certifications to benefit from complete fault tolerance and redundancy for all components. Due to such advantages, even developing countries are adopting tier 4 zones.
- The development of digital infrastructures such as data centers is required to implement 5G applications. More recently, the expansion of 24/7 business continuity services has increased the preference for tier 3 and 4 data centers due to the growing number of global companies. Data is an essential component of BFSI companies due to the stringent laws governing data storage and protection in the market. The BFSI sector is defined by digitalization. Due to the growing usage of various banking applications, data in the BFSI sector is growing exponentially.
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UAE accounted for majority share in terms of volume in 2023, Saudi Arabis is fastest growing throughout the forecasted period
- In the coming years, the Middle East region is expected to increase its investment in the data center market. Several factors are facilitating the expansion of data centers in the area. The region's governments' smart city ambitions are driving a shift in how modern communities are built. Cities of the future, supported by digital technologies, are expected to generate massive amounts of data. It is critical to optimize data capture, storage, and processing.
- Domestic data growth and the emergence of 5G networks drive demand for localized data centers to speed up data transfer. Uncertain data sovereignty regulations in certain jurisdictions, including the GCC, drive data center investments. This emphasizes the importance of organizations such as banks retaining customer data within the country.
- The United Arab Emirates has been a prime location for data centers in the region as one of the frontrunners in the race to establish a robust and competitive digital economy. According to Arcadis' Data Centre Location Index, the UAE's "well-established fiber broadband network" helped the country secure the top spot for mobile broadband penetration. At the same time, the ease of obtaining construction permits and new smart city initiatives make it an emerging location for data center investment.
- Saudi Arabia launched a USD 18 billion strategy in July 2021 to establish a nationwide network of large-scale data centers. According to the Saudi Ministry of Communications and Information Technology, the first batch of investment partners includes local firms Gulf Data Hub, Al-Moammar Information Systems, and Saudi FAS Holding.
Middle East Data Center Market Trends
Growing number of mobile users and expanding 5G population coverage across the regional countries boosts the market growth
- The GCC countries have experienced substantial changes in ICT use over the past two decades, resulting in a considerable impact on the services offered to users due to developing digital infrastructure. Internet and telecommunications services are much more common in the region than they are globally, especially in GCC, with the proportion of internet users to the total population in GCC reaching 98.21%, compared to the global average of 63%, which is practically the highest in all geographic areas.
- In GCC, the total number of mobile users makes up roughly 137.66% of the population, compared to the global average of about 55%. ICT services in the GCC region are developing quickly due to the region's continued influx of new commercial mobile service providers, causing a sharp rise in the number of users. Around two-thirds of wireless network operators in the Middle East launched 5G networks, expanding 5G population coverage across the regional countries. The majority of Middle Eastern countries have already implemented commercial 4G services.
- The increasing OTT consumption also boosted data traffic for each smartphone. For instance, Etisalat released its Life TV iOS app in 2013, a year after MBC's Shahid TV app surpassed it as the most downloaded Middle Eastern app. OSN revealed the debut of Go for non-pay TV users. In the Middle East, there are large regional differences in the accessibility and cost of super-fast networks. The deployment of various OTT platforms and speed improvements may result in a greater demand for rack space, leading to a rise in the number of data centers in the Middle East.
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Prioritizing digital initiatives, such as 5G, digital payment and attracting sizable population of working immigrants boost the market demand
- To shift toward a knowledge-based economy, the UAE and Saudi Arabian governments are prioritizing digital initiatives, such as 5G. Due to state-wide consumer initiatives like digital payment, smartphones are leading the move to a digital lifestyle. The region's quick rebound of business and leisure travel, as well as permissive long-term visa policies like Golden Visas, which are stimulating investments across sectors from real estate to start-ups, are supporting the robust smartphone market recovery in the short term. International events, especially the FIFA World Cup in Qatar in 2022, may also present opportunities for various corporate sectors in neighboring nations.
- Though the region is attracting a sizable population of working immigrants, creating fresh demand for mass-market products, it is extremely wealthy. The Middle East accounts for more than half of global sales value except for Turkey. Apple and Samsung are the market leaders in the smartphone segment, accounting for approximately 96% of shipping volume combined.
- Device activations in the Middle East increased Y-o-Y, growing by an average of 23% in 2022. Larger markets like Iraq and Egypt, which continued to grow despite having enormous current user bases, were the main drivers of this expansion. The amount of raw data is expected to increase due to smartphone penetration and the use of 5G devices. The number of smartphone users may lead to the use of more data and the internet. The need for more data centers and higher regional utilization rates may boost the demand for the servers required to store and process the data.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing investments for the expansion of 5G network by Operators and region vision to grow digital by 2030 drives the growth of the market
- Growing demand for the bandwidth, FTTH penetration, and Government initivatives to develop fiber Deployment drives the growth of the market
- Transition to Fiber and GCC governments initiatives to roll out fiber optic cables nationwide trends boost the market demand
Middle East Data Center Industry Overview
The Middle East Data Center Market is fragmented, with the top five companies occupying 29.06%. The major players in this market are Bezeq International General Partner Ltd, EdgeConneX Inc., Etihad Etisalat Company (Mobily), Etisalat and MEEZA (sorted alphabetically).
Middle East Data Center Market Leaders
Bezeq International General Partner Ltd
EdgeConneX Inc.
Etihad Etisalat Company (Mobily)
Etisalat
MEEZA
Other important companies include Bynet Data Communications Ltd, Electronia, Gulf Data Hub, HostGee Cloud Hosting Inc., Injazat, Khazna Data Center, MedOne I.C.-1 (1999) Ltd.
*Disclaimer: Major Players sorted in alphabetical order.
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Middle East Data Center Market News
- October 2023: Mohamed bin Ali bin Mohamed Al-Mannai, minister of communications and information technology, has launched the M-VAULT 4's fourth data center building. Customers in Qatar can access cloud services through the Microsoft Cloud data center region housed in the new data center facility.
- October 2022: The prominent network of hyperscale data centers in the Middle East and North Africa region, a joint venture between Khazna Data Centers, and Masdar and EDF have inked a deal to build a ground-mounted solar photovoltaic (PV) plant to power Khazna's new data center in Masdar City.
- October 2022: The company announced the development of DXB2 and DXB3 with a joint capacity of 43 MW of IT load. The DXB3 facility is an extension of an existing facility transferred to Khazna following the strategic partnership between G42 and e&.
Free with this Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
Middle East Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Israel
- 5.6.2 Saudi Arabia
- 5.6.3 United Arab Emirates
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Data Center Size
- 6.1.1 Large
- 6.1.2 Massive
- 6.1.3 Medium
- 6.1.4 Mega
- 6.1.5 Small
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6.2 Tier Type
- 6.2.1 Tier 1 and 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
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6.3 Absorption
- 6.3.1 Non-Utilized
- 6.3.2 Utilized
- 6.3.2.1 By Colocation Type
- 6.3.2.1.1 Hyperscale
- 6.3.2.1.2 Retail
- 6.3.2.1.3 Wholesale
- 6.3.2.2 By End User
- 6.3.2.2.1 BFSI
- 6.3.2.2.2 Cloud
- 6.3.2.2.3 E-Commerce
- 6.3.2.2.4 Government
- 6.3.2.2.5 Manufacturing
- 6.3.2.2.6 Media & Entertainment
- 6.3.2.2.7 Telecom
- 6.3.2.2.8 Other End User
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6.4 Country
- 6.4.1 Israel
- 6.4.2 Saudi Arabia
- 6.4.3 United Arab Emirates
- 6.4.4 Rest of Middle East
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Bezeq International General Partner Ltd
- 7.3.2 Bynet Data Communications Ltd
- 7.3.3 EdgeConneX Inc.
- 7.3.4 Electronia
- 7.3.5 Etihad Etisalat Company (Mobily)
- 7.3.6 Etisalat
- 7.3.7 Gulf Data Hub
- 7.3.8 HostGee Cloud Hosting Inc.
- 7.3.9 Injazat
- 7.3.10 Khazna Data Center
- 7.3.11 MedOne I.C.-1 (1999) Ltd
- 7.3.12 MEEZA
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, MIDDLE EAST, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), MIDDLE EAST, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, MIDDLE EAST, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, MIDDLE EAST, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, MIDDLE EAST, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, MIDDLE EAST, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, MIDDLE EAST, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, MIDDLE EAST, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, MIDDLE EAST, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, MIDDLE EAST, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, MIDDLE EAST, 2017 - 2029
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, MIDDLE EAST, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, MIDDLE EAST, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LARGE, MW, MIDDLE EAST, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, MIDDLE EAST, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, MIDDLE EAST, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, MIDDLE EAST, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, MIDDLE EAST, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, MIDDLE EAST, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF MEGA, MW, MIDDLE EAST, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, MIDDLE EAST, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF SMALL, MW, MIDDLE EAST, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, MIDDLE EAST, 2017 - 2029
- Figure 24:
- VOLUME OF TIER TYPE, MW, MIDDLE EAST, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, MIDDLE EAST, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, MIDDLE EAST, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, MIDDLE EAST, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, MIDDLE EAST, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, MIDDLE EAST, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, MIDDLE EAST, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, MIDDLE EAST, 2017 - 2029
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, MIDDLE EAST, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, MIDDLE EAST, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, MIDDLE EAST, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, MIDDLE EAST, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, MIDDLE EAST, 2017 - 2029
- Figure 44:
- VOLUME OF END USER, MW, MIDDLE EAST, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF END USER, %, MIDDLE EAST, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF BFSI, MW, MIDDLE EAST, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, MIDDLE EAST, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, MIDDLE EAST, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, MIDDLE EAST, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, MIDDLE EAST, 2017 - 2029
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, MIDDLE EAST, 2017 - 2029
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, MIDDLE EAST, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, MIDDLE EAST, 2017 - 2029
- Figure 54:
- VOLUME OF COUNTRY, MW, MIDDLE EAST, 2017 - 2029
- Figure 55:
- VOLUME SHARE OF COUNTRY, %, MIDDLE EAST, 2017 - 2029
- Figure 56:
- VOLUME SIZE OF ISRAEL, MW, ISRAEL, 2017 - 2029
- Figure 57:
- VOLUME SIZE OF SAUDI ARABIA, MW, SAUDI ARABIA, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF UNITED ARAB EMIRATES, MW, UNITED ARAB EMIRATES, 2017 - 2029
- Figure 59:
- VOLUME SIZE OF REST OF MIDDLE EAST, MW, REST OF MIDDLE EAST, 2017 - 2029
- Figure 60:
- VOLUME SHARE OF MAJOR PLAYERS, %, MIDDLE EAST, 2022
Middle East Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Israel, Saudi Arabia, United Arab Emirates are covered as segments by Country.
- The tier 3 segment currently holds the majority of the market share in the Middle East due to the significant advantages of its features. These tiers have a high level of redundancy and multiple power and cooling paths. The tier 3 data centers have an uptime of around 99.982%, resulting in 1.6 hours of downtime per year. With the increased adoption of edge and cloud connectivity, the tier 3 segment is expected to grow further.
- The tier 3 segment of the Middle Eastern market operated at an IT load capacity of 464.68 MW in 2022. During the forecast period (2022-2029), the IT load capacity is expected to grow from 621.78 MW in 2023 to 1,214.86 MW in 2029, with a CAGR of 11.81%.
- The tier 4 segment is expected to record the fastest CAGR of 26.51%. Several developing countries are focusing on getting Tier 4 certifications to benefit from complete fault tolerance and redundancy for all components. Due to such advantages, even developing countries are adopting tier 4 zones.
- The development of digital infrastructures such as data centers is required to implement 5G applications. More recently, the expansion of 24/7 business continuity services has increased the preference for tier 3 and 4 data centers due to the growing number of global companies. Data is an essential component of BFSI companies due to the stringent laws governing data storage and protection in the market. The BFSI sector is defined by digitalization. Due to the growing usage of various banking applications, data in the BFSI sector is growing exponentially.
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User | |||
| Country | Israel | ||
| Saudi Arabia | |||
| United Arab Emirates | |||
| Rest of Middle East |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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