Kuwait data center market to grow at 10% CAGR

The Kuwait data center market is expected to reach a value of $352.3 million by 2028 from $198.5 million in 2022, growing at a CAGR of 10.03%, according to Research and Markets.

This comprehensive report delves into the Kuwait data center market, providing detailed insights into both existing and upcoming facilities. It covers investments in critical areas such as IT, electrical and mechanical infrastructure, general construction, and tier standards. The report also offers a thorough examination of market sizing and investment estimates for various segments.

Kuwait City emerges as the prime choice for data center development in the region, primarily due to its proximity to end-users.

In the Gulf Cooperation Council (GCC), Kuwait stands as the second-ranked country for the availability of 5G telecommunications networks, boasting a commendable rate of 33.6%. Telecom operators, namely Ooredoo Kuwait and Zain Kuwait, are actively working towards the deployment of commercial 5G services within the region.

The Kuwait data center market benefits from the presence of four operational submarine cables that connect the Middle East, Africa, and Europe. An exciting development is the imminent arrival of the 2Africa submarine cable, set to establish critical connections between Kuwait and several Middle Eastern, African, European, and Asian countries.

Notably, the Kuwait data center landscape features prominent cloud service providers like Amazon Web Services, Microsoft, Oracle, and Google. Google, for instance, has announced plans to establish a new cloud region in January 2023, extending its services to local clients, including the Government of Kuwait and the Alshaya Group.

Microsoft’s robust ecosystem and cloud-based services in Kuwait have played a pivotal role in driving technology adoption, with significant investments expected to create approximately 13,000 new jobs in the country by 2024.

Kuwait currently hosts six operational colocation data centers, with key players including Ooredoo, Gulf Data Hub, Kuwait Telecommunication Company (stc), and Zajil Telecom. These colocation facilities predominantly adhere to Tier III standards, with roughly ten data center facilities receiving Tier III certification for both construction and design from the Uptime Institute. Research and Markets