Data cen­tres boom­ing in ME and Africa - new re­port

A “Golden Age” of data cen­tres is upon us.

Comms MEA - - Update Data Centres -

IT’S A GOOD TIME TO OPEN A DATA CEN­TRE IN THE MENA RE­GION.

The Mid­dle East and North Africa data cen­tre colo­ca­tion mar­ket is on the cusp of a boom phase, ac­cord­ing to a new re­port by re­search and an­a­lyt­ics firm Xalam An­a­lyt­ics.

The re­port, ti­tled “Cloud, Hyper­scale, and the Golden age of MENA Data Cen­tres” notes that MENA mar­kets “are home to some of the high­est lev­els of broad­band pen­e­tra­tion in emerg­ing mar­kets, fi­nan­cial mar­kets with global reach and a the­ater for some of the most am­bi­tious ex­er­cises in dig­i­tal trans­for­ma­tion in the mod­ern world.” “But,” the re­search firm adds, “the data cen­tre mar­ket hadn’t fully kept up. Un­til now.”

“Things are chang­ing”, says Guy Zibi, Xalam Prin­ci­pal An­a­lyst and one of the au­thors of the re­port. “We pro­ject MENA colo­ca­tion sup­ply ca­pac­ity to nearly dou­ble be­tween 2017 and 2020, with rev­enue ex­plod­ing to a 20%-plus run rate over that pe­riod.”

The rapid growth, the re­port notes, “is fu­eled by an ac­cel­er­a­tion of con­sumer and en­ter­prise cloud adop­tion, de­mand from man­aged ser­vices and con­tent providers, in­creased en­ter­prise data cen­tre colo­ca­tion and crit­i­cally, the ar­rival of hyper­scale In­ter­net providers.”

In par­tic­u­lar, the re­port high­lights the im­pact of global In­ter­net con­tent and cloud providers, with at least nine pub­lic cloud data cen­ters slated to be­come op­er­a­tional in the MENA re­gion in 2019.

“Hyper­scale de­mand is a game-changer,” says Zibi. “It is trans­form­ing colo­ca­tion busi­ness mod­els, the mar­ket’s tra­di­tional com­pet­i­tive struc­ture, and the very na­ture of the re­gion’s data cen­tre fa­cil­i­ties.”

While de­mand from hyper­scale and other providers are boost­ing de­ploy­ments, the re­port stresses that “MENA colo­ca­tion rev­enue will re­main pre­dom­i­nantly gen­er­ated by en­ter­prises, as more mi­grate their data cen­tres to colo­ca­tion fa­cil­i­ties.”

Xalam An­a­lyt­ics also high­lights key pock­ets of data cen­tre de­mand. “Saudi Ara­bia and the United Arab Emi­rates are the re­gion’s largest data cen­tre colo­ca­tion mar­kets. To­gether, the two coun­tries ac­count for around 60% of MENA colo­ca­tion ca­pac­ity,” the re­search firm notes. “But we also see strong pock­ets of growth in Morocco, Oman, or Bahrain.”

We pro­ject MENA colo­ca­tion sup­ply ca­pac­ity to nearly dou­ble be­tween 2017 and 2020, with rev­enue ex­plod­ing to a 20%-plus run rate over that pe­riod.”

- Xalam prin­ci­pal an­a­lyst Guy Zibi

Dubai United Arab Emi­rates.Photo credit: Ben Mack

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