Middle East and Africa Data Center construction was valued at USD 7,107.79 million in 2021 and is expected to reach the value of USD 11328.74 million by 2029, at a CAGR of 6.00% during the forecast period of 2022 to 2029. Data center construction refers to the collective process of physically constructing a data center facility with sufficient capacity, disaster recovery systems, minimal wiring requirements, and an efficient layout that fulfills all necessary functions. It involves numerous tasks such as engineering, project management, planning, and preventative maintenance. It usually comprises data communication connections, security devices, power supplies, and air conditioning and fire suppression systems, which ensures that resources are optimally utilized, and all environmental factors are considered. As a result, data center construction is widely adopted in oil and gas, media and entertainment, retail, banking, financial services and insurance (BFSI), information and technology (IT), telecommunication, and healthcare sectors across the globe.

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Innovative and Sustainable Data Center Power Technologies

Several operators are upgrading their data centers from traditional technologies to new ones. Such new technologies will also help the companies focus on sustainability. Some such innovations are as follows:

• Adoption of advanced UPS batteries such as Lithium-ion, Nickle-Zinc, and Prussian Blue sodium-ion batteries replacing lead-acid batteries
• Software-Defined Data Centers (SDDC) and AI in power monitoring
• Microgrid adoption in data centers, majorly among hyperscalers
• Floating data centers, underwater data centers, snow-cooled data centers, and boiling liquid for cooling data centers
• Replacing Diesel Generators with naturally Gas-Powered Hydrogen Fuel Cells & Hydrotreated Vegetable Oil (HVO).

AI to Boost Liquid-Cooling Adoption

Liquid cooling will rapidly grow among data centers deploying AI & ML workloads. For instance, most upcoming facilities will include at least one data hall to support the deployment of advanced two-phase immersion cooling and direct-to-chip cooling solutions. Meta (Facebook) has announced its plan to pause several new and expansion projects across the U.S., as it wants to create a new AI design for the data center facilities.

Government Support to Develop Data Centers

Over the past few years, data center growth has focused on countries offering tax incentives. Many state and local governments provide investments and sales tax incentives to attract operators. The U.S. is leading in providing tax incentives to data center operators. Several states in the U.S. provide tax incentives to data centers for investments, job opportunities, and compensation for employees.

Impact of Supply Chain Disruption

Supply chain disruptions are a major challenge faced by data center developers recently. With the onset of COVID-19, supply chain disruptions increased, leading to a shortage of infrastructure such as power equipment, cooling infrastructure, chips, and other infrastructure. Also, political instability and disturbances between Russia and Ukraine led to a price hike in energy and fuel costs. One of the major shortages faced in the data center construction market was chip shortage, which led to a decline in manufacturing several infrastructures.

Highlight of Table of Content:

  • Chapter 1: Market overview
  • Chapter 2: Middle East and Africa Data Center Construction Market Analysis
  • Chapter 3: Regional analysis of the Middle East and Africa Data Center Construction Market
  • Chapter 4: Market segmentation based on types and applications
  • Chapter 5: Revenue analysis based on types and applications
  • Chapter 6: Market share
  • Chapter 7: Competitive Landscape
  • Chapter 8: Drivers, Restraints, Challenges, and Opportunities
  • Chapter 9: Gross Margin and Price Analysis

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Some of the major players operating in the data center construction market are:

  • Page Southerland Page, Inc (U.S.)
  • Holder Construction Group, LLC (U.S.)
  • Gensler (U.S.)
  • SH Group, Inc. (U.S.)
  • DPR Construction (U.S.)
  • Turner Construction Company (U.S.)
  • AECOM (U.S.)
  • Arup (U.K.)
  • STO Building Group (U.S.)
  • Jones Engineering Group (Ireland)
  • HDR (U.S.)
  • Corgan (U.S.)
  • IBM Corporation (U.S.)
  • SAS Institute Inc (U.S.)
  • Fortis Construction Inc. (U.S.)

Profound Questions Answered in this Report:

  • What is the growth rate of various stages in the value chain of the industry?
  • Which region has the highest growth rate and size of the emerging market by value in 2022?
  • Who are the competitive players in Middle East and Africa Data Center Construction Market?
  • Which region has the largest share and degree of competition in the industry?
  • What is the CAGR of the market during the forecast period 2022 to 2029?
  • Which region is expected to hold the highest market share for the market?
  • What is the main driver of the Middle East and Africa Data Center Construction Market?
  • What is sales volume, revenue, and price analysis of top players of the market?
  • What are the market opportunities and threats faced by the vendors in the industry?
  • What has been the impact of COVID-19 on the Middle East and Africa Data Center Construction Market?

 

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