Data centers are investing more in power infrastructure with a minimum of N+1 redundancy. In 2020, UPS systems accounted for a market share of around 30% of the total electrical infrastructure in data centers. In 2020, the other Middle Eastern countries witnessed the highest investments because the data center operators are investing in countries such as Oman, Qatar, Bahrain, and Kuwait. In 2020, the UAE witnessed around three projects, adding a power capacity of 30 MW. The increased use of the 4G LTE network and the emergence of the 5G network are aiding the growth in data generation. Also, fixed broadband speed is growing significantly across the globe, with APAC and Latin America witnessing a growth of around 3 Mbps YoY. Edge data centers will create a decentralized model of data centers, where multiple edge data centers will be connected to a centralized hyperscale facility.
The data center market in the Middle East by electrical infrastructure is very competitive as data center operators are procuring more efficient power infrastructure to overcome challenges. Atkins, ENMAR ENGINEERING, Edarat Group, Harinsa Qatar (HQ), which are constructing data center facilities in the region. The construction contractors provide services such as engineering, procurement, and project management. Data center operators such as Amazon Web Services (AWS), Etisalat, Equinix, Gulf Hub, Turkcell, Telecom Italia Sparkle, and Khazna have invested in the region to expand their portfolio across the region. Companies are also adopting and showing interest in solutions designed by the Open Compute Project. The average selling price of HPE servers increased due to the cost of components. ODM providers supply systems that are based on the Open Compute Project (OCP) design, which is rapidly being adopted by hyperscale providers in the market.