Market Trends of UAE Data Center Server Industry
Blade Servers To Grow At A Faster Pace In The Coming Years
- Blade servers are often used for huge processing data, but they also produce a lot of heat. These tend to be more expensive than rack or tower servers and require proper humidity and cooling infrastructure to run efficiently without damaging the hardware.
- Blade servers are installed in server bays, not in racks. This structure allows more servers to be installed in a smaller area. For example, a rack may only hold 10 rack servers, but a blade bay can hold 20 blade servers. The blade chassis can still be rack mounted, but more blade servers can fit in the same space compared to rack servers.
- To cater to end-user needs, the top companies are focusing on blade servers in data centers. The growing adoption of technologies such as cloud computing, artificial intelligence (AI), and IT services by businesses is propelling the use of servers in data centers.
- E-commerce sales in the UAE expanded at an annual rate of 23% between 2018 and 2022.
Understand The Key Trends Shaping This Market
Download PDF
IT & Telecommunication Is The Largest Market In The Country
- A major center of international trade and business in the Middle East/ North Africa MENA region, the UAE is a highly competitive information and communication technology (ICT) market. The UAE government's efforts to reduce its dependence on oil revenues and expand the private sector are aimed at building an attractive knowledge economy and a no-cost, effective, efficient, and globally integrated business environment to promote the growth of the knowledge-based economy.
- Dubai, one of the seven emirates of the United Arab Emirates, is subject to the Federal ICT Act and is part of a unified national ICT infrastructure. Etisalat and DU serve the telecommunications market in Dubai and the rest of the UAE. UAE telecom providers have played and will continue to play a pivotal role in adopting big data, blockchain technology, and artificial intelligence (AI) applications in the country.
- Key market players have entered strategic partnerships to accelerate their business using cloud technologies. In November 2022, G42 Cloud, a division of artificial intelligence company G42 in Abu Dhabi, and German software giant SAP signed an agreement to assist businesses in accelerating their digital transformation using cloud technology. As it portrays itself as a global innovation center, the UAE has long championed the crucial role that digital transformation plays in its economy and culture. Due to rising data consumption and changing economic and societal landscapes that are increasingly digital, cloud technology is being widely adopted in the UAE.
- The UAE is the first country in the Arab world and the fourth in the world to launch a 5G network. Du and Etisalat, the country's largest carrier, rolled out a limited 5G network in 2019, making the ZTE Axon 10 Pro 5G-enabled smartphone available to postpaid and prepaid customers. Due to the UAE's technology leadership and high GDP per capita, demand for 5G services is expected to increase in the coming years.
