Rising Technologies Power Investments In Data Center

Doha: Qatar's data center market is witnessing a surge in demand with investments flowing into the sector.

Experts across the country accentuated the significance of adapting to modern technologies, which saw swift investments, eventuating the growth of Qatari economy.

Speaking to The Peninsula, Kareem Ibrahim, a data center analyst said:“We expect a soaring demand for the market especially in the forthcoming months as enterprise data centers and managed service data centers are on the rise.”

“This is, of course, supported by technologies such as AI, Intelligent Monitoring, Server virtualisation, Hybrid cloud, and 5G Networks. The enhancements and usage of such technologies attract international investors to Qatar.”

A recent report by Statista noted that the revenue for the market in 2024 is estimated to amount to $195.70m.

Network Infrastructure dominates the sector by forecasting a market volume of $126.90m this year.

On the other hand, the projected revenue is anticipated to show a compound annual growth rate (CAGR) of 5.76 percent until 2029, indicating a market volume of $259m during the forecast period.

In terms of the global outlook, Statista also notes that the highest revenue will be generated in the US, with a whopping $123m in 2024.

Another analyst, Salman M. Basher told The Peninsula that“AI activities optimise the performance of a data center and act as a vanguard for the data center. Through predictive analytics, the technology is a core area of concern and merges with the usage of energy resources.”

“We have noted that the country is experiencing massive investment-flows across cities in the country in areas including IT, power, cooling, and general construction services,” he added.

According to Research and Markets, Qatar's data center market size is reported to grow at a CAGR of 7.98 percent in the next four years.

The data says that enormous investments are implemented in order to build new data centers and upgrade current ones to meet rising demand and bolster technologies.

Analysts at Research and Markets emphasise that the market nearly operates ten colocation data centers in Qatar.

The majority of the colocation facilities are being enhanced according to Tier III standards.

Industry leaders also note the surging priority on energy-efficient and sustainable data centers, driven by concerns about the carbon footprint of the data center industry.

On the other hand, the market has witnessed significant growth in recent years due to rising demand for cloud computing, big data analytics, and Internet of Things (IoT).

Microsoft is the first global hyper-scale cloud provider in the region, while various other companies opt for hybrid solutions combining on-premises data centers with cloud services to optimise cost and performance.

Some of the primary investors in the Qatar data center market include MEEZA, Ooredoo, Gulf Data Hub, and Quantum Switch, while the latter two are new entrants. Other key vendors and IT infrastructure providers are namely Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise (HPE), and Huawei.

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