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

INDUSTRY OUTLOOK

The Russia data center market will witness investments of USD 1.61 billion by 2029, growing at a CAGR of 7.07% during the forecast period. Russia is experiencing a surge in the utilization of digital platforms, the expansion of its digital economy, cryptocurrency mining operations, and the adoption of Industry 4.0 technologies. These developments will drive significant investments in colocation data center facilities in the forthcoming years.

The Ministry of Digital Development in Russia is proposing support for data center operators, suggesting preferential lending for buying locally-made engineering infrastructure like fire protection systems and climate equipment. Furthermore, the Ministry of Construction published rules in July 2023 to enhance the safety and reduce the environmental impact of data centers' building and design, addressing issues related to outdated technologies and energy efficiency.

The Ministry of Digital Development in Russia envisions the development of small data centers, anticipating that mini-data centers will constitute 30% of calculations in the country by 2035, responding to the growing demand for Internet of Things (IoT) devices. Also, modern technological strategies for constructing and operating data centers present a genuine opportunity to significantly reduce construction costs per unit area in the Russia data center market. Cost remains a critical limiting factor hindering the industry's development in Russia. In 2023, the Russian government defined conditions for state support in high-tech technology parks.

KEY HIGHLIGHTS

1. Due to the ongoing political tension between Russia and Ukraine, data center operators are facing difficulties in their supply chains, resulting in a slowdown in construction projects. Additionally, many Western and major countries have imposed sanctions on Russia, leading to a significant number of companies deciding to leave the region. Despite challenges, the Russia data center market rebounded and resumed growth after facing difficulties in 2022.
2. Projects that were put on hold in 2022 are now resuming in 2023. Issues like the departure of foreign vendors caused setbacks, but companies like CROC and Lanit-Integration are busier now as clients move forward with previously planned projects.
3. Moscow's data center services saw a 2% price hike in late 2023, reflecting a moderate increase in costs for hosting data and renting rack space.
4. With a high internet penetration rate of 88.2% and 127.6 million internet users, there is a growing demand for online services, leading to an increased need for robust data center infrastructure to support digital activities. The substantial number of cellular mobile connections (156.9% of the population) and the reported increase in internet speeds indicate a strong emphasis on mobile connectivity. This trend may drive investments in data center infrastructure to enhance and support mobile networks.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size is available in terms of investment, area, power capacity, and Russia colocation market revenue.
2. An assessment of the data center investment in Russia by colocation, hyperscale, and enterprise operators.
3. Investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Russia 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 Russia
6. Facilities Covered (Existing): 84
7. Facilities Identified (Upcoming): 16
8. Coverage: 8+ Cities
9. Existing vs. Upcoming (Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data Center Colocation Market in Russia
12. Colocation Market Revenue & Forecast (2023-2029)
13. Retail & Wholesale Colocation Revenue (2023-2029)
14. Retail & Wholesale Colocation Pricing
15. The Russia data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
18. A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

1. Some of the key colocation investors in the Russia data center market are 3data, DataPro, IXcellerate, Linxdatacenter, Rostelecom, Selectel, and Yandex.
2. Telecom operators such as MTS, Rostelecom, Orion Express, and others played an important role in connectivity across the country.
3. The migration of on-premises infrastructure to cloud/colocation by local enterprises will play a vital role in the growth of colocation revenue.

EXISTING VS. UPCOMING DATA CENTERS

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

REPORT COVERAGE:

This report analyses the Russia 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. 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 and CRAH
17. Chillers
18. Cooling Towers, Condensers and Dry Coolers
19. Economizers & Evaporative Coolers
20. Other Cooling Units
21. General Construction
22. Core & Shell Development
23. Installation & commissioning Services
24. Building & Engineering Design
25. Fire Detection & Suppression Systems
26. Physical Security
27. Data Center Infrastructure Management (DCIM)
28. Tier Standard
29. Tier I & Tier II
30. Tier III
31. Tier IV 
32. Geography
33. Moscow
34. Other Cities

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Fujitsu, Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, and Super Micro Computer.
2. Data Center Construction Contractors & Sub-Contractors: Arup, Astron Buildings, GreenMDC, Haka Moscow, and LANIT-Integration.
3. Support Infrastructure Providers: Aksa Power Generation, Climaventa Climate Technologies, Cummins, Delta Electronics, Eaton, Emicon, HiRef, HITEC Power Protection, KyotoCooling, Legrand, Mitsubishi Electric, Perkins Engines, Rittal, Rolls Royce Power Systems, STULZ, and Vertiv.
4. Data Center Investors: 3data, DataPro, IXcellerate, Linxdatacenter, Rostelecom, Selectel, and Yandex.

TARGET AUDIENCE

1. Real Estate Investment Trusts
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies