Tuesday, February 23rd, 2016


WiseGuyReports.com adds  “DATA CENTER CONSTRUCTION MARKET IN GCC 2016-2020” report to its research database.

This market research report provides a comprehensive analysis of the data center market in GCC by electrical construction (UPS, energy storage equipment, generators, transfer switches and switchgear, and others) and by mechanical construction (cooling solutions, racks, and others). The prominent vendors analyzed in this report are Arup Associates, Data Center Technologies – Gulf, Drake & Scull International, Edarat, ISG, McLaren Construction.

Overview of the data center construction market in GCC

Technavio’s market research analyst predicts the data center market in GCC to grow at a CAGR of more than 19% during the forecast period. The high demand for cloud-based services is a key growth driver for this market. The demand for cloud-based services is growing in GCC, as it aids in improving the overall operational efficiency of enterprises on a local and a global scale. Data centers are imperative for cloud operations, as they house servers, storage and networking equipment, and power and cooling equipment. The region is set to witness a rapid rise in the number of data centers, driven by the need for scalable, reliable, and collaborative operational environments among enterprises in the region.

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The growing adoption of colocation and managed hosting services is expected to aid the market growth in the coming four years. A data center colocation facility rents computing servers and storage to enterprises minimizes power and bandwidth utilization and enhances the security of enterprise IT equipment. This facility reduces the CAPEX associated with building, operating, and updating a data center facility as well. Colocation and managed hosting solutions are required to reduce spending on IT infrastructure, improve security, and provide more control to enterprises over critical data.

Segmentation by electrical construction and analysis of the data center market in GCC


  • UPS


  • Energy storage equipment


  • Generators


  • Transfer switches and switchgear


  • Others (PDUs, external lighting, panels, and utility transformers)


Generators accounted for a majority of the market share during 2015 and is expected to grow at a CAGR of more than 20% over the forecast period. Most newly constructed data center facilities are of Tier 3 and Tier 4 standards, where the need for service availability is high. The number of generators used in data centers is expected to grow due to the increased construction of new facilities that will have generators as a mandatory requirement and the high availability of fuel in the region. Generators with high horsepower supply power to data center equipment quickly and efficiently during outages. Digital control technology helps in the remote monitoring of parameters such as control system status, load levels, and status of power transfer and underlying connections.

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Segmentation by mechanical construction and analysis of the data center market in GCC


  • Cooling solution


  • Rack
  • Other


The cooling solutions segment is expected to witness the highest growth over the next four years. Competition among cooling infrastructure manufacturers has intensified with the availability of numerous products and solutions that are available for data center operators in the market. Currently, data center construction focus on power usage and development of eco-friendly facilities, and cooling systems are considered to be the costliest investment.

Competitive landscape and key vendors

Data center construction depends on the economic status of the countries in the GCC, and on the growing business requirements of enterprises in the region. Numerous companies are constructing facilities that would support their businesses for a long time and are also creating a scope for future restoration. Building a Tier 4 data center facilities can take up to two years. The market is dependent on the electrical and mechanical infrastructure adopted by data center operators for the construction of new facilities and the renovation of existing ones. The market is likely to saturate after 2019, and the renovation of data center facilities will increase after 2020.

The key vendors in the market are -

  • Arup Associates
  • Data Center Technologies - Gulf
  • Drake & Scull International
  • Edarat
  • ISG
  • McLaren Construction
  • Other prominent vendors in the market include Gensler, Mercury MENA, NOVA, Syska Hennessy, and Turner Construction.

Key questions answered in the report include


  • What will the market size and the growth rate be in 2020?
  • What are the key factors driving the data center construction market in GCC?
  • What are the key market trends impacting the growth of the data center construction market in GCC?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the vendors in the data center construction market in GCC?
  • What are the key outcomes of the five forces analysis of the data center construction market in GCC?


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