In an increasingly digital world, data centers are the backbone of the global internet, providing storage, processing, and distribution capabilities for the vast and growing volume of data generated every day. According to a report by Dell’Oro Group, the renowned market information provider, global data center CapEx is predicted to exceed a staggering $500 billion by 2027, primarily driven by AI infrastructure spending. However, short-term growth in cloud and enterprise CapEx is expected to decelerate due to the market's adjustment phase.
Hyperscale cloud service providers will likely play a pivotal role in future growth, with significant investments predicted in accelerated systems for AI applications. The focus will also be on optimizing the entire data center stack, deploying next-generation servers, and leveraging high-core counts and deeper memory attached to next-generation networks. This continuous optimization of the data center industry comes amidst a forecasted 15% worldwide data center CapEx growth by 2027, with over 20% of global server deployments in 2027 potentially being accelerated.
When exploring regional markets, such as the Middle East, it’s great to see the optimism spreading here. As a region steeped in rich tradition, the Middle East is making strides in the world of data center construction. Saudi Arabia, the UAE, Bahrain, Oman, Kuwait, and Turkey are leading the way as can be read here, fuelled by the emergence of smart cities and a growing need for data processing and storage. Between 2023 and 2028, seven new submarine cables are anticipated to increase data center demand significantly.
The Middle East data center construction market, valued at $1.84 billion in 2022, is projected to reach $2.86 billion by 2028 (according to new predictions), with a healthy CAGR of 7.59%. The United Arab Emirates and Saudi Arabia are the primary contributors to this growth, representing about 30% and 27% of capacity, respectively. A shift from oil economies to digital economies, investments in cloud-based services, and smart city developments are crucial drivers in these countries. Telecom giants like Ericsson, stc, Turk Telecom, Cellcom, Zain, Nokia, Vodafone, Ooredoo, du, and Omantel are among those rolling out 5G services in the region, further propelling the data center market.
Cloud investments are also on the rise in the region. In line with global trends, Middle Eastern businesses are increasingly shifting their workloads to cloud platforms. Tech giants such as Amazon Web Services, Google Cloud, and Microsoft Azure have established a significant presence in the region, further highlighting the importance of data center infrastructures.
3 of the most in-demand data centre jobs in Dubai
- Data Centre Operations Manager - someone who has experience of working in a 1000+ racks, multitenant and hyperscale environment. Consultants who have experience of Operations management as well as facilities management are usually preferred
- Sales Specialists/Consultants. Managers – With Everything being stored in Data centres locally, the demand is high for Sales specialists who can win new data centre customers. Usually Technical sellers and know how new data centres are evolving. know how to position the advantages of a Private Cloud vs. a Public Cloud
- Operations Engineers – For the 24/7 uptime of Data center. Usually requires previous experience with NOC/SOC operations, and ITIL AND ISO certifications to maintain standards.
In conclusion, while the global landscape of data center CapEx continues to grow, the Middle East is proving to be an emerging hotspot. With massive investments in smart city projects, an emphasis on renewable energy sources, and growing cloud adoption, the region is poised to make significant strides in the data center construction market. It's a signal that the Middle East is ready to take a lead role in the digital age, blending tradition with technology in a rapidly evolving world.