Kuwait Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Kuwait data center market will witness cumulative investments of USD 340 million by 2029, growing at a CAGR of 11.49% during the forecast period. Kuwait's economic reforms and diversification efforts create a favorable data center growth environment. The government's initiatives to open international debt markets, allow commercial bank property loans, and introduce corporate taxes are expected to enhance economic stability and attract investments. Furthermore, the region is accelerating its Kuwaitisation agenda by terminating 800 expatriate contracts to prioritize local workforce employment. This strategic move aligns with the nation's focus on boosting domestic employment opportunities and fostering economic growth. As the Kuwait data center market expands, this policy will help ensure that the benefits of growth are shared with the local population.

The New Kuwait Vision 2035 outlines strategic goals for economic diversification, social empowerment, and sustainability. This vision includes supporting entrepreneurship, modernizing infrastructure, and investing in renewable energy, positioning Kuwait as a hub for innovation and sustainable development. Also, in September 2023, Kuwait saw a USD 196.3 million increase in Foreign Direct Investment (FDI) compared to the previous quarter. This increase reflects Kuwait's growing attractiveness to foreign investors, driven by its economic reforms and strategic initiatives. Increased FDI is likely to spur further growth in the Kuwait data center market as international companies invest in Kuwait's expanding digital infrastructure.

The country plans to triple its energy demand by 2030 and increase renewable energy generation to 15% by the same year. The government aims to achieve 22GW of renewable energy capacity, reducing reliance on fossil fuels and enhancing sustainability. Investment in renewables is expected to save up to USD 2.5 billion annually in electricity production costs by 2030, providing economic resilience and supporting the region's data center market's growth.

KEY HIGHLIGHTS

1. Kuwait City has become a strategic location for data center development, with major operators like Ooredoo and Zajil Telecom establishing their facilities there. Leading colocation providers are expanding their footprints, with Gulf Data Hub planning approximately three facilities in Kuwait City, each offering around 80,000 square feet of IT space.
2. The entry of Gulf Data Hub, Omniva, and Khazna Data Centers drives significant growth in the Kuwait data center market. For instance, in May 2023, Khazna Data Center, an Emirati company, announced plans to build up to 20 data centers in Kuwait and Saudi Arabia to meet increasing data service demands. Additionally, in July 2023, Omniva planned to establish AI-focused GPU data centers, leveraging advanced immersion cooling solutions.
3. Kuwait's connectivity is facilitated by an extensive network of submarine cables, encouraging data center investments. Existing cables include FALCON, Fiber Optic Gulf (FOG), and the Gulf Bridge International Cable System (GBICS). Moreover, the 2Africa submarine cable, expected to be operational in 2024, will enhance regional connectivity with a design capacity of up to 180 Tbps.
4. The presence of major cloud service providers such as Amazon Web Services, Microsoft, Oracle, and Google bolsters the country's data center market. In January 2023, Google Cloud revealed plans to launch a new cloud region in the country to support digital transformation for local entities like the Alshaya Group and the Government of Kuwait.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size is available in terms of investment, area, power capacity, and Kuwait colocation market revenue.
2. An assessment of the data center investment in Kuwait by colocation and enterprise operators.
3. Investments in the area (square feet) and power capacity (MW) across locations in the country.
4. A detailed study of the existing Kuwait data center market landscape, an in-depth market analysis, and insightful predictions about industry size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Kuwait
6. Facilities Covered (Existing): 06
7. Facilities Identified (Upcoming): 07
8. Coverage: 2+ Locations
9. Existing vs. Upcoming (Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data Center Colocation Market in Kuwait
12. Market Revenue & Forecast (2023-2029)
13. Retail Colocation Pricing
14. The Kuwait data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
15. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
16. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
17. A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

1. Some key investors in the Kuwait data center market include Ooredoo, Kuwait Telecommunication Company (stc), Zain, and Zajil Telecom.
2. The country's data center market also witnessed the entry of colocation operators and cloud providers such as Agility, Gulf Data Hub, Google, Khazna Data Centers, and Zeuus Data Centers.
3. The country's construction contractors have both a global and local presence and supply major market operators—AECOM, EGEC, Marafie Group, and Egis, among others.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Kuwait City
3. Other Cities
4. List of Upcoming Facilities in the Region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Kuwait data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Servers
3. Storage Systems
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC & CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers & Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Engineering & Building Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei, IBM, Juniper Networks, NetApp, and Oracle.
2. Data Center Construction Contractors & Sub-Contractors: AECOM, EGEC, Marafie Group, and Egis.
3. Support Infrastructure Providers: ABB, Airedale, Alfa Laval, Caterpillar, Cummins, Eaton, Honeywell International, Johnson Controls, Legrand, Rittal, Schneider Electric, STULZ, and Vertiv.
4. Data Center Investors: Ooredoo, Kuwait Telecommunication Company (stc), Zain, and Zajil Telecom.
5. New Entrants: Agility, Gulf Data Hub, Google, Khazna Data Centers, and Zeuus Data Centers.