{"id":1793,"date":"2023-09-05T15:30:23","date_gmt":"2023-09-05T12:30:23","guid":{"rendered":"https:\/\/gulfdca.com\/?p=1793"},"modified":"2023-09-05T15:53:07","modified_gmt":"2023-09-05T12:53:07","slug":"5-things-to-know-about-the-gcc-data-centre-market","status":"publish","type":"post","link":"https:\/\/gulfdca.com\/en\/5-things-to-know-about-the-gcc-data-centre-market\/","title":{"rendered":"5 things to know about the GCC data centre market"},"content":{"rendered":"

By Henry Sutton, Founder GDCA<\/strong><\/p>\n

Welcome to the GDCA\u2019s new blog series! Every month we\u2019ll bring you insights and thought-leadership pieces on the latest trends affecting the GCC data centre market. Keep an eye on our LinkedIn<\/a> and website for the latest updates. We may also look to open up our blogs to outside contributors, so watch this space!<\/p>\n

To kick off, we\u2019re taking a look at key five things everyone should know about the data centre market in the GCC region<\/strong>, from its position as an underserved market to its ambitions to become a global tech hub.\u00a0<\/strong><\/p>\n

1.It\u2019s an underserved market<\/strong><\/h3>\n

\"\"The GCC region has been underserved for a long time. To date, there is not enough capacity available to meet population numbers and very few international players currently operating in a market that has historically been predominantly telco dominated. The GCC data centre market size for instance sits around 500MW compared to 2,536MW in FLAP+D.<\/p>\n

But the need for increased digital infrastructure is booming in the GCC. With a huge surge of enterprises moving to cloud<\/a>, the adoption of new technologies, particularly AI, and strong forward momentum from government entities to develop new infrastructure, there is high demand for data centre colocation and hyperscale use throughout the region.<\/p>\n

Indeed, the Kingdom of Saudi Arabia (KSA) alone is estimated to reach 25-30% CAGR by 2030. With a total population over 35 million, two-thirds of which are under 35 and early tech adopters, the Ministry of Communications and Information Technology (MCIT)\u2019s allotted US$18 billion investment in hyperscale data centres and renewable energy by 2030<\/a> to grow the market supply to 1,300 MW by 2030 is not so farfetched.<\/p>\n

2.The region is opening up<\/strong><\/h3>\n

\"\"The good news is that the GCC is opening up and propelling forward politically, economically, and infrastructure wise \u2013 leaving a huge amount of potential in its wake.<\/p>\n

Moreover, with established laws, regulators and systems now in place across the region, established international players are able to more easily enter the market. While regulations are in their infancy and need time to mature, trade agreements are on the way up and the ability for foreign investors and businesses to set up has eased dramatically with the likes of Free Zones and 100% company ownership very attainable.<\/p>\n

Bahrain for instance has an open telco market and its government\u2019s Cloud First Policy<\/a> has opened the market to international cloud players. Meanwhile the Salalah Free Zone<\/a> in Oman is offering international data centre investors top incentives, infrastructure and logistics capabilities with close proximity to subsea cables such as 2Africa, Gulf2Africa, India Europe Xpress and Raman.<\/p>\n

If you\u2019re looking to enter the market, then there is undoubtedly a huge amount of desire and potential in the region to grow the data centre market now and in the future.<\/p>\n

3.There\u2019s an abundance of low-cost power<\/strong><\/h3>\n

The price of power in established markets is skyrocketing. In the UK<\/a> for example, prices are around the US$0.41 (\u00a30.33) per KW mark while other markets are also feeling the pinch of power shortages<\/a>.<\/p>\n

\"\"<\/p>\n

In the GCC however, the cost of grid power is significantly lower:<\/p>\n