Press And Media

3rd edition of Data Centre Middle East report finds a slowdown in the build out of new specialized Data Centre facilities in the region

Published: Mon 30 May 2016

Tariff Consultancy Ltd) has launched the 3rd edition of the Data Centre Middle East report, which provides forecasts for Data Centre raised floor space and Data Centre Customer Power (DCCP) for the 3 year period from the end of 2016 to the end of 2019. 

 

The TCL Data Centre Middle East 2016 to 2019 report provides a unique survey of 85 Data Centre Providers with over 120 Data Centre facilities over ten countries (including Bahrain, Cyprus, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia & the UAE).

 

From the survey, TCL calculates that the region almost 140,000 m2 of Data Centre raised floor space and 176 MW of DCCP as of the end of 2016.

 

But the rate of growth in the region has slowed with just over 7,400 m2 of new raised floor space added in total during 2015, with the Telecom Provider accounting for the majority of new Data Centre facilities launched over the past year – with the main growth taking place in Saudi Arabia. The report uses primary research and information from the unique TCL Data Centre pricing database.

 

The largest markets in the Middle East include the UAE, Saudi Arabia and Israel. Additionally Iran has the potential to become one of the largest markets, with some 16 Data Centre facilities, and a need for new domestic IT infrastructure investment, with additional capacity for international communications also required.

 

For the six GCC (Gulf Cooperation Council) countries the third party Data Centre provider faces competition from the in-house Data Centre – with financial institutions, hospitals, universities & other Government institutions building their own Data Centre facilities in the region. As a result, migration to 3rd party hosting in the Gulf States is taking longer to achieve in the light of considerable overhang of under-used hosting space available and with IT users reluctant to migrate away from their own self-built facilities.

 

Data Centre Providers are seeking to improve their services in two main ways including:

  • Through the offering of a wider product portfolio - including managed hosting, application hosting, and cloud services. 
  • Additional certifications & quality assurance – including certification for particular customer segments and improved resilience for applications.

TCL finds that pricing for the 3rd party Data Centre is broadly unchanged since the 2nd Data Centre Middle East report published in 2015 - with providers offering competitive rates in order to attract new users – with pricing in Iran also being impacted by the decline of the Iranian Rial against the US Dollar.

 

The Telecoms Provider, including operators such as STC & Mobily (Saudi Arabia), Ooredoo (Qatar), Etisalat (UAE) are expanding their in-country facility coverage offering network connectivity to all facilities.

 

TCL forecasts that Data Centre space across the 10 country survey will increase by 9.7 per cent per annum with DCCP to increase by 8 per cent per annum over the 3 year period from the end of 2016 to the end of 2019.

 

Data Centre service providers will need to continue to expand their service portfolio and also create a clear price saving proposition if they are to persuade the end user to migrate to a 3rd party Data Centre facility – as part of a long term IT strategy.

 



Notes to the Editors:

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About the TCL Data Centre Middle East – 2016 to 2019 report
: The TCL Data Centre Middle East – 2016 to 2019 is an extensively updated report of the previous TCL Data Centre Middle East 2016 report. The report provides a 3 year forecast of Data Centre raised floor space and Data Centre Customer Power for ten countries in the survey (including Bahrain, Cyprus, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the UAE) from the end of 2016 to the end of 2019.

The TCL Data Centre Middle East – 2016 to 2019 report costs GBP £1,595 (single user licence), with further information available on the TCL Data Centre Pricing website

Follow TCL Data Centre Pricing on Twitter: at #DataCentreTrack

 

About TCL (Tariff Consultancy Ltd): TCL is a specialist international telecoms research and consultancy firm, which provides a series of Telecoms Tariff Tracker services for mobile, fixed line and Data Centre pricing. TCL has launched a dedicated web portal for its international Data Centre Pricing practice at: www.datacentrepricing.com and has created a unique database of worldwide pricing and capacity with 3,000 facilities from 1,200 Data Centre Providers in 53 countries globally. Further information on TCL can be found on the Telecom Pricing website at: www.telecomspricing.com       

 

 

 

 



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