22.3% growth of the data center market in the UAE to 2026

Yousef Al Arabi (Abu Dhabi)

The data center market in the United Arab Emirates is growing by 22.3% in five years, registering a compound annual growth rate of 4.1% during the period from 2021 to 2026, according to the “UAE Data Center Market Analysis” report issued by MarkNtel Advisors for research and studies. The report issued by the research institution, which was reviewed by Al-Ittihad, confirmed that the growth of the data market in the UAE has been supported by a number of factors and initiatives, including rapid digitization of government services, smart city development projects, as well as the deployment of the fifth generation infrastructure. The report stated that the shift in the UAE’s focus on oil to becoming the regional hub for information technology has led to an increase in demand for data centers in the country.

data protection
The report indicated that the Federal Law No. establish a central system (data center) to store The health care exchange and collection also imposed fines for violations. The report said that the UAE has been a pioneer in the integration of advanced technologies, such as artificial intelligence (AI), machine learning (ML), blockchain, and the fifth generation mobile networks in areas such as financial services, healthcare, transportation, manufacturing and warehouses among other industries. Data centers are increasing exponentially in the state.

positive effects
The report confirmed that the “Covid 19” pandemic had a positive impact on the data center market in the UAE as most institutions immediately enabled remote work for all employees to ensure their safety due to restrictions and precautions.
The study points out that the increasing reliance on cloud, big data and the Internet of Things in the wake of the COVID-19 pandemic has in turn increased the demand for efficient data centers to store and access large amounts of data. by supporting cloud and video conferencing.
She said with the increasing need to improve IT performance, resilience and security among organizations in the UAE, the data center market is growing faster than expected during the pandemic, and is expected to grow even more in the coming year.

improve competitiveness
In turn, Dr. Riyad Sobhani, PG Project Manager and Head of the Data Visualization and Analytics Course, College of Mathematics and Computer Science, Heriot-Watt University Dubai, told Al-Ittihad that the UAE is among the top ten competitive economies in the world for the second year in a row, According to the IMD Global Competitiveness Ranking 2021, and this is an important indicator of the country’s development of its technological infrastructure, including data centers, since a competitive economy requires an investor-friendly environment that supports innovation.
He added that the UAE has devoted special attention to data storage through an information and communication technology strategy, which defines the deployment of secure cloud infrastructure and data storage in all sectors and industries.

Legislative structure
Sobhani emphasized that the legislative structure of the UAE is effective in addressing rapid technological changes that increase the need for data storage and protection.
He noted that the federal law issued in September 2021 “on data protection” provides a clear picture of the way data is collected, processed, reviewed and transferred, as the law is drafted in accordance with international best practices and enforces compliance with companies that own personal data for consumers. He added that due to the government’s ambition to transform the UAE into a smart country, secure cloud infrastructure and data storage have been integrated into all industries, ranging from government and residential services to healthcare and manufacturing.
In addition, he said, the increasing reliance on the Internet as well as national strategies encouraging the use of artificial intelligence, cloud computing and Internet of Things applications lead to a greater need for reliable data storage and protection.

UAE initiatives
Riyadh Sobhani said that there are many initiatives that the UAE has taken in recent years that make it stand out in terms of strategies related to digitization, explaining that initiatives such as e-government, smart cities, open data, authorization of “Blockchain” include. for government transactions and other advanced steps.
He noted that the most important thing is that “digitalization” is integrated into the public service and the economic development strategy, as the Ministry of Health launched the “Malfi” system, the first platform for the exchange of health information in the region, which aims to is to make public contact. and private healthcare providers, and “Malfi” is an example of using data analytics to improve healthcare in the country.
The Dubai Future Foundation, in collaboration with the Dubai Economy, recently published a new report that provides recommendations to accelerate the exchange and use of data and encourage investments in the data sector. The report discusses the importance of using data to increase efficiency, simplify operations and gain strategic insights at a level of granularity in companies and governments in ways previously unattainable, and it demonstrates the ongoing interest and efforts dedicated is improving the use of data for the benefit of the digital economy.

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