July 18, 2024

The UAE Data Center Market: A Global Trend

Data Center
Data Center (Representational Image)

Data centre companies can also be referred to as colocation companies, and these companies build and operate data centres, providing a highly secure space with redundant power, cooling, and network infrastructure for those who find it more affordable and/or more reliable than operating their own data centres. Due to digital transformation, the UAE is witnessing a huge expansion of data centres. It is estimated that the UAE Data Center Market is set to grow at a CAGR of 18.4 percent in terms of revenue generation over the period of 2021-2026. The UAE government’s smart city initiatives, including the adoption of 5G, Internet of Things (IoT), and Artificial intelligence (AI) are driving the demand for data centres.

The UAE data centre market is one of the most prominent markets in the Middle East region. The market has several driving factors, such as significant digitalisation growth, strong fibre connectivity, growing technology adoption, and more. The size of the market is calculated mainly in terms of  IT infrastructure, electrical and mechanical infrastructure, general construction, and other such factors.  Numerous local and international data centre operators are present in the UAE data centre market today. One such provider is Gulf Data Hub (GDH).

Expanding the UAE Data Center Market: The Rise of Secure Colocation

Massive investments are being made to expand the global need for sophisticated data storage. Renowned for the development of the Dubai Silicon Oasis data centre, GDH has set forth to conquer and become the next pioneer in this field. In recent development, GDH is set to build a KAUST data centre that will meet a variety of data storage needs while retaining the adaptability to host numerous potential research parks and external partners.

Representational Image

Since Gulf Data Hub’s operations began in 2012, they’ve continuously innovated and sought out ways to reduce the dangers of downtime while boosting efficiency. By maintaining neutrality, Gulf Data Hub aspires to establish itself as a premier carrier-and vendor-neutral data centre that will draw a wider clientele in the UAE region. The business is known in the region for offering solutions that are specifically created for its end users and guaranteeing total Service Level Agreement (SLA) compliance.

A significant step in their effort to penetrate the regional digital market is their recent cooperation with Etisalat to acquire the whole capacity of their Tier III data centre. With the development of augmented reality, driverless vehicles, artificial intelligence, and gaming platforms, GDH is constructing numerous centres to meet the demand.

Recognising the dedication to rapid and sustainable growth, Gulf Data Hub was recognised by International Business Magazine as the Best Data Center Provider UAE 2023. This accomplishment demonstrates GDH’s commitment to improving its ability to offer its clients top-notch services.

In a nutshell

The growing demand for cloud services in the UAE is increasing due to huge investments in data centres. As UAE is observing a major revolution, the need of the hour is to fulfil this ever-growing demand in the market. Furthermore, new entrants in the data centre hub are making progress and introducing advanced features, which in turn is contributing to the region’s growth.

Blog by Tamanna Shaikh

Also read:

Cisco plans to develop data center for cloud security services in KSA



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