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Middle Eastern Data Centres are set for a 40% growth in raised floor space and revenues for the next 5 year period

Data Centres in the Middle East are set for a period of steady growth in new space and revenues according to a new report published by Tariff Consultancy Ltd (TCL).

Called Data Centres Middle East – 2012 the report provides an overview of the sector based on a survey of 61 facilities from 41 Data Centre providers across 8 countries (including Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the UAE) in the Middle East.

Data Centres Middle East focuses on the housing and collocation segment in each country, and provides details of total raised floor space and average rack space pricing with a 5 year forecast for revenues and space from the end of 2012 to the end of 2017.

From the report TCL have been able to identify the following key trends across the 8 countries in the Middle East region:

• Data Centre revenue is forecast to increase by 8 per cent per annum over the 5 year period – from $296 million USD to $410 million USD
• Data Centre raised floor space is forecast to increase by 7 per cent per annum over the same period – from 116,300 square metres to 165,000 square metres
• As of the end of 2012 TCL forecasts that the average facility size in the region is just over 1,900 square metres per facility
• The largest Data Centre country markets by raised floor space are the UAE, Israel and Qatar, with a range of new high specification facilities being planned in the UAE and Qatar in particular.
• The main types of Data Centre in the region are Carrier-based followed by the ISP-based provider and the Integrator-based provider, with the Carrier Neutral Data Centre remains a relatively small segment in the region.
• The average price per rack in the region (as of 2012) is $819 USD per month, which is around 38% below the average European Data Centre rate.
• Furthermore the cost of power which is subsidised in many countries in the region (mainly the Gulf States) ranges as low as 2 cents per kWh – which is approximately one fifth of the average EU-27 country power cost.

The Data Centre Middle East report finds that collocation and Data Centre facilities vary considerably by market, with new Tier 3 and Tier 4 grade facilities being constructed in Qatar and the UAE.

New high specification Data Centres in the Middle East region are also being constructed as key to cater for a range of Managed Services including application hosting, Disaster Recovery and cloud computing services, usually as part of a broader Government strategy to provide ICT services and attract foreign investment.

About the Data Centre Middle East – 2012 report: The TCL Data Centre Middle East report provides pricing and information on key Data Centres across the 8 countries in the region including Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. The report costs GBP 995  for a single user licence and is also available with TCL’s Data Centre Africa – 2012 report for a bundled offer price of GBP 1,495. 

About Tariff Consultancy Ltd (TCL): TCL is a specialist international telecoms consultancy and research company based in London. TCL provides a range of pricing reports and subscription services including the quarterly Data Centre Price Tracker – which provides a survey of pricing in 14 European country markets – which also includes mobile and fixed line pricing surveys. Further information on TCL’s services can be found on the TCL website at: www.telecomspricing.com