Saudi Arabia Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 345.3 MW |
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Market Volume (2029) | 854.8 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 19.88 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Data Center Market Analysis
The Saudi Arabia Data Center Market size is estimated at 345.3 MW in 2024, and is expected to reach 854.8 MW by 2029, growing at a CAGR of 19.88%. Further, the market is expected to generate colocation revenue of USD 5,287.1 Million in 2024 and is projected to reach USD 13,577.6 Million by 2029, growing at a CAGR of 20.76% during the forecast period (2024-2029).
USD 5,287.09 Million
Market Size in 2024
USD 13,557.5 Million
Market Size in 2029
6.2%
CAGR (2017-2023)
20.8%
CAGR (2024-2029)
IT Load Capacity
345.3 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 855 MW by 2029. About 93% of Saudi Arabian smartphone users browse advertisements on their phones it would increase IT load capacity.
Total Raised Floor Space
Sq. Ft. 1.38 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 3.4 million sq. ft by 2029. The construction of smart cities in Saudi Arabia may boost the demand for data centers to store more data.
Installed Racks
69,063
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 170,963 units by 2029. Riyadh is expected to house the maximum number of racks by 2029 owing to the construction of new large data center facilities.
# of DC Operators & DC Facilities
15 and 39
Volume, DC Facilities, 2024
There are 39 colocation data center facilities in Saudi Arabia. Some factors contributing to the growth of the data center in the country are the adoption of 5G, smartphone penetration, and growing digitization.
Leading Market Player
51.8%
Market Share, Etihad Etisalat Company (Mobily) , 2023
Etihad Etisalat Company (Mobily) was the leading player in the Saudi Arabian market during the historical period. The company rolled out eight data centers with a capacity of 168.3 MW.
Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period
- The tier 3 data center segment is projected to reach an IT load capacity of 224.87 MW in 2023 in the Saudi Arabian market. It is expected to have a capacity of 483.43 MW by 2029, representing a CAGR of 13.61%. Tier 4 data center in the Saudi Arabian market is projected to reach an IT load capacity of 134.65 MW in 2023. It is expected to register a CAGR of 18.44% to reach a capacity of 371.64 MW by 2029.
- In comparison to other tier types, tier 3 is projected to increase fastest in 2029. This is a result of the majority of facilities achieving Tier 3 certification. Tier 4 is projected to increase rapidly in the next few years. This is due to the establishment of a digital economy in the country and the incorporation of significant multinational corporations. Additionally, digital infrastructures like data centers are essential for 5G applications. The expansion of business continuity services 24/7 has led to an increase in the choice of tier 3 and tier 4 data centers due to the increasing number of worldwide companies.
- Due to the rigorous laws regarding data storage and protection in this market, data is a vital component of BFSI companies. Additionally, the BFSI segment adopted digitization. As more people use different banking applications, banking and financial services data grows exponentially. BFSI also manages thousands of physical servers and virtual computers. For instance, Saudi Arabia had 16,544 ATMs in 2021. Therefore, the industry is classified as tier 3 to handle such a volume of data.
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Saudi Arabia Data Center Market Trends
Expansion of 5G coverage, increasing online purchases and increasing digital applications from the end-users drives the market growth
- The data traffic per smartphone is expected to witness a steep growth from 5.5 GB in 2023 to 18.7 GB in 2029, exhibiting a CAGR of 21.8%.
- There has been an increase in mobile data traffic since 2022, made possible by the expansion of 5G coverage. 5G services in Saudi Arabia expanded in Q4 2020, reaching seven additional cities and provinces. By 2021, 51 of Saudi Arabia's different provinces and cities had 5G connections. About 23% of the overall volume is made up of 5G hardware, including handsets. The acceleration of significant IoT deployments is expected to be swift in the coming years, including use cases like wearables for e-health, inventory trackers for logistics, monitoring of pollution, smart meters, and surveillance and tracking tools for smart manufacturing. About 12.9 million people made online purchases in 2018, up from 11.6 million in 2017. By 2022, online shoppers were expected to grow significantly and reach 19.3 million. The volume of mobile data traffic in the country is increasing as more people use the internet.
- The average amount of data used increased by 33% by 2020. In Saudi Arabia, YouTube used the most bandwidth, making up an estimated 22.5% of all daily data usage, followed by the PlayStation Network (7.8%), Snapchat (7.6%), and Netflix (8.1%).
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With the expansion of digital initiatives and e-commerce activities, and improvements in 5G connections, smartphone sales are anticipated to rise in Saudi Arabia
- In 2022, smartphone penetration increased to more than 92%. In the coming years, the number of smartphone users in the Kingdom may continue to grow steadily, with an anticipated 97.1% smartphone penetration in 2025 and 36.17 million customers. Saudi Arabia is the GCC's next frontier for businesses trying to reach a new and mobile-centric consumer base.
- The country's total number of smartphone users is expected to reach 33.6 million in 2023, witness a CAGR of 1.8% during the forecast period, and reach 37 million by 2029.
- Smartphone usage has surged in the Kingdom. In 2022, the smartphone segment generated USD 2.40 billion in revenue. In 2023, the smartphone segment is anticipated to rise in volume by 1.9%. In 2022, there were 58.1 5G phones. With rising wages and employment opportunities, expansion of digital initiatives and e-commerce activities, and improvements in 5G connections, smartphone sales are anticipated to rise in Saudi Arabia, thus boosting the Kingdom's user base. Saudi Arabia's GDP expanded by 8.8% in 2022 compared to the same period the previous year. About 93% of Saudi Arabian smartphone users browse advertisements on their phones, while 91% watch videos on their devices. A huge amount of data is released daily in the Kingdom, which may boost the Saudi Arabian data center market during the forecast period. The rising purchasing power may boost smartphone sales further, thus increasing the number of smartphone users.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing investments for the expansion of 5G network by Operators and quick adoption of 4G services drives the growth of the market
- Growing demand for the bandwidth, FTTH penetration, and Government initivatives to develop fiber infrastructre drives the growth of the market
- Transition to Fiber and governments initiatives to roll out fiber optic cables nationwide boost the market demand
Saudi Arabia Data Center Industry Overview
The Saudi Arabia Data Center Market is moderately consolidated, with the top five companies occupying 61.79%. The major players in this market are ETIHAD ATHEEB TELECOMMUNICATION COMPANY, Etihad Etisalat Company (Mobily), HostGee Cloud Hosting Inc., Saudi Telecom Company and SHABAKAH INTEGRATED TECHNOLOGY (sorted alphabetically).
Saudi Arabia Data Center Market Leaders
ETIHAD ATHEEB TELECOMMUNICATION COMPANY
Etihad Etisalat Company (Mobily)
HostGee Cloud Hosting Inc.
Saudi Telecom Company
SHABAKAH INTEGRATED TECHNOLOGY
Other important companies include CLOUD LAYERS FOR INFORMATION TECHNOLOGY CO (Nashirnet), Detecon Al Saudia DETASAD Co. Ltd., Electronia, Gulf Data Hub, Nournet, Sahara Net, Systems Of Strategic Business Solutions.
*Disclaimer: Major Players sorted in alphabetical order.
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Saudi Arabia Data Center Market News
- April 2022: Saudi Telecom Company (STC) to deliver 16 facilities with 17,000 storing units serving eight parallel sites across six cities. The maximum capacity is expected to reach 125MW. The project will be completed in three phases: in phase 1: three data centres in Riyadh, Jeddah and Medina; four in the second phase; and the remaining nine in the third phase.
- February 2022: Saudi Telecom Company (STC) to separate its data center business into a new wholly-owned subsidiary.
- November 2018: Detecon Al Saudia DETASAD Co. Ltd. Awarded and signed a contract to manage and operate SEC (Saudi Electricity Company) Data Centers in 4 cities (Riyadh, Dammam, Jeddah, Abha) for 4 years.
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.
Saudi Arabia 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 Saudi Arabia
- 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 Hotspot
- 6.1.1 Riyadh
- 6.1.2 Rest of Saudi Arabia
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
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 CLOUD LAYERS FOR INFORMATION TECHNOLOGY CO (Nashirnet)
- 7.3.2 Detecon Al Saudia DETASAD Co. Ltd.
- 7.3.3 Electronia
- 7.3.4 ETIHAD ATHEEB TELECOMMUNICATION COMPANY
- 7.3.5 Etihad Etisalat Company (Mobily)
- 7.3.6 Gulf Data Hub
- 7.3.7 HostGee Cloud Hosting Inc.
- 7.3.8 Nournet
- 7.3.9 Sahara Net
- 7.3.10 Saudi Telecom Company
- 7.3.11 SHABAKAH INTEGRATED TECHNOLOGY
- 7.3.12 Systems Of Strategic Business Solutions
- 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, SAUDI ARABIA, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), SAUDI ARABIA, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, SAUDI ARABIA, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, SAUDI ARABIA, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, SAUDI ARABIA, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, SAUDI ARABIA, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, SAUDI ARABIA, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, SAUDI ARABIA, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, SAUDI ARABIA, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, SAUDI ARABIA, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, SAUDI ARABIA, 2017 - 2029
- Figure 12:
- VOLUME OF HOTSPOT, MW, SAUDI ARABIA, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, SAUDI ARABIA, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF RIYADH, MW, SAUDI ARABIA, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF RIYADH, MW, HOTSPOT, %, SAUDI ARABIA, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF REST OF SAUDI ARABIA, MW, SAUDI ARABIA, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF REST OF SAUDI ARABIA, MW, HOTSPOT, %, SAUDI ARABIA, 2017 - 2029
- Figure 18:
- VOLUME OF DATA CENTER SIZE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF DATA CENTER SIZE, %, SAUDI ARABIA, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF LARGE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 21:
- VOLUME SIZE OF MASSIVE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF MEDIUM, MW, SAUDI ARABIA, 2017 - 2029
- Figure 23:
- VOLUME SIZE OF MEGA, MW, SAUDI ARABIA, 2017 - 2029
- Figure 24:
- VOLUME SIZE OF SMALL, MW, SAUDI ARABIA, 2017 - 2029
- Figure 25:
- VOLUME OF TIER TYPE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 26:
- VOLUME SHARE OF TIER TYPE, %, SAUDI ARABIA, 2017 - 2029
- Figure 27:
- VOLUME SIZE OF TIER 1 AND 2, MW, SAUDI ARABIA, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, SAUDI ARABIA, 2017 - 2029
- Figure 29:
- VOLUME SIZE OF TIER 4, MW, SAUDI ARABIA, 2017 - 2029
- Figure 30:
- VOLUME OF ABSORPTION, MW, SAUDI ARABIA, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF ABSORPTION, %, SAUDI ARABIA, 2017 - 2029
- Figure 32:
- VOLUME SIZE OF NON-UTILIZED, MW, SAUDI ARABIA, 2017 - 2029
- Figure 33:
- VOLUME OF COLOCATION TYPE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 34:
- VOLUME SHARE OF COLOCATION TYPE, %, SAUDI ARABIA, 2017 - 2029
- Figure 35:
- VOLUME SIZE OF HYPERSCALE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 36:
- VOLUME SIZE OF RETAIL, MW, SAUDI ARABIA, 2017 - 2029
- Figure 37:
- VOLUME SIZE OF WHOLESALE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 38:
- VOLUME OF END USER, MW, SAUDI ARABIA, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF END USER, %, SAUDI ARABIA, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF BFSI, MW, SAUDI ARABIA, 2017 - 2029
- Figure 41:
- VOLUME SIZE OF CLOUD, MW, SAUDI ARABIA, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF E-COMMERCE, MW, SAUDI ARABIA, 2017 - 2029
- Figure 43:
- VOLUME SIZE OF GOVERNMENT, MW, SAUDI ARABIA, 2017 - 2029
- Figure 44:
- VOLUME SIZE OF MANUFACTURING, MW, SAUDI ARABIA, 2017 - 2029
- Figure 45:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, SAUDI ARABIA, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF TELECOM, MW, SAUDI ARABIA, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF OTHER END USER, MW, SAUDI ARABIA, 2017 - 2029
- Figure 48:
- VOLUME SHARE OF MAJOR PLAYERS, %, SAUDI ARABIA, 2022
Saudi Arabia Data Center Industry Segmentation
Riyadh are covered as segments by Hotspot. 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.
- The tier 3 data center segment is projected to reach an IT load capacity of 224.87 MW in 2023 in the Saudi Arabian market. It is expected to have a capacity of 483.43 MW by 2029, representing a CAGR of 13.61%. Tier 4 data center in the Saudi Arabian market is projected to reach an IT load capacity of 134.65 MW in 2023. It is expected to register a CAGR of 18.44% to reach a capacity of 371.64 MW by 2029.
- In comparison to other tier types, tier 3 is projected to increase fastest in 2029. This is a result of the majority of facilities achieving Tier 3 certification. Tier 4 is projected to increase rapidly in the next few years. This is due to the establishment of a digital economy in the country and the incorporation of significant multinational corporations. Additionally, digital infrastructures like data centers are essential for 5G applications. The expansion of business continuity services 24/7 has led to an increase in the choice of tier 3 and tier 4 data centers due to the increasing number of worldwide companies.
- Due to the rigorous laws regarding data storage and protection in this market, data is a vital component of BFSI companies. Additionally, the BFSI segment adopted digitization. As more people use different banking applications, banking and financial services data grows exponentially. BFSI also manages thousands of physical servers and virtual computers. For instance, Saudi Arabia had 16,544 ATMs in 2021. Therefore, the industry is classified as tier 3 to handle such a volume of data.
| Hotspot | Riyadh | ||
| Rest of Saudi Arabia | |||
| 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 |
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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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