(MENAFN- The Peninsula)
Joel Johnson
|
The Peninsula
Doha, Qatar: According to a report by Statista, Qatar's data centre market revenue is projected to reach $206.90m (QR753.32m) in 2025, showing an annual growth rate of compound annual growth rate (CAGR) of 5.78 percent, resulting in a market volume of $259m by 2029.
The data further highlights that Qatar's Network infrastructure dominates the market with a projected market volume of $131m in 2025.
Mohamed El Masri, Founder and CEO of PermianChain Technologies Inc told The Peninsula that some of the primary drivers of the data centre industry stem from the growing demand for cloud-based solutions to store, process, share, and manage data over the Internet.
The data centre market represents approximately 0.10 percent of the country's GDP, which stood at $235.8bn (QR858.55bn) in 2022.
However, from a broader communications sector perspective, revenue in Qatar's Communication Services market is anticipated to amount to $2.5bn (9.10bn) in 2025.
He underscored the critical role of advancing the data centre sector to support Qatar's growing digital economy.“Like other GCC nations, Qatar is diversifying its economy to reduce reliance on oil revenues. Most importantly, achieving a sovereign digital economy is key to securing long-term prosperity and ensuring the nation remains competitive and relevant in an increasingly globalised world,” El Masri said.
He accentuated that“the adoption of artificial intelligence (AI), blockchain, digital assets, and other advanced technologies is accelerating this trend. These drivers are also reflected in the energy sector as data centres require significant power resources.”
On the contrary, GCC countries are uniquely positioned to capitalise on this opportunity by building distributed energy infrastructure, he said.
This will enable the rapid deployment of critical computing infrastructure and ensure the development of sovereign digital economies. However, policymakers and regulatory bodies must foster innovation and enact legislation that encourages the importation of expertise, technology, and foreign direct investments at scale to support the commissioning of mega projects.
The data centre economy is characterised by extremely high barriers to entry. El Masri said“Currently, we are in a critical market cycle where the race to deployment is intensifying among large corporations, institutions, and governments. This cycle will likely define the future of the sector, which is rapidly becoming a defensive industry powering the global digital economy.”
“As the market matures, consolidation through mergers, acquisitions, and public-private partnerships will lead to a concentration of market share among a few major players,” the official added. While cloud computing continues to be a key driver of data centre growth, analysts note that there are untapped verticals that present opportunities for private investors to make impactful and lucrative investments.
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