As per MRFR analysis, the GCC Data Center Rack Market Size was estimated at 59.84 (USD Million) in 2023.Â
The GCC Data Center Rack Market Industry is expected to grow from 65.16(USD Million) in 2024 to 159.16 (USD Million) by 2035. The GCC Data Center Rack Market CAGR (growth rate) is expected to be around 8.457% during the forecast period (2025 - 2035).
The GCC Data Center Rack Market is currently experiencing substantial trends that are being driven by the accelerated digital transformation that is occurring throughout the region. Businesses are upgrading their data storage and administration capabilities in response to the growing demand for cloud computing and big data analytics. The demand for data center facilities is on the rise as governments in the GCC, particularly in countries such as the UAE and Saudi Arabia, invest significantly in infrastructure to establish smart cities and promote tech innovation. The transition to energy-efficient solutions has significantly influenced the market, as companies strive to reduce operational costs and mitigate their carbon footprints in accordance with national sustainability objectives.
Additionally, enterprises are being compelled to establish local data centers as a result of the implementation of regulations that promote data sovereignty. This has generated opportunities for custom-designed data center racks that are specifically tailored to the specialized requirements of a particular region. In the data center rack market, there has been a recent increase in the use of modular and scalable solutions. This methodology offers adaptability and enables organizations to promptly adjust to evolving technological requirements without incurring substantial capital expenditures. The significance of efficient data center rack solutions is underscored by the rise of edge computing, which is driven by the necessity for quicker processing and data handling in close proximity to the data source.
Furthermore, the increasing prevalence of the Internet of Things (IoT) and Artificial Intelligence (AI) is compelling data centers to upgrade their cooling systems and install higher-density racks in order to mitigate the resulting heat burdens. Businesses and investors are encouraged to investigate opportunities in clever and adaptable data center rack solutions to remain competitive in this evolving market landscape, as the GCC continues to prioritize technological advancement.
Fig 1: GCC Data Center Rack Market Overview
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The surge in demand for digital services in the Gulf Cooperation Council (GCC) region is a significant driver for the GCC Data Center Rack Market Industry. Digital transformation in sectors such as banking, healthcare, and education is pushing organizations to adopt advanced IT infrastructures. A report from the United Nations Conference on Trade and Development indicates that 89% of businesses in GCC countries have accelerated their digital transformation initiatives since the onset of the pandemic.
This trend drives the requirement for data centers and, subsequently, for data center racks that can support increased capacities and efficiencies. Large firms like Saudi Aramco and Emirates NBD are investing heavily in their digital infrastructures, indicating a substantial need for data center solutions, including racks to accommodate their growing servers and IT equipment. This will support the projected growth trajectory of the market.
Various government initiatives in GCC countries are crucial for the development of IT infrastructure, directly impacting the GCC Data Center Rack Market Industry. For instance, the UAE's National Strategy for Artificial Intelligence aims to position the country as a global leader in AI by 2031. The strategy emphasizes enhancing the IT infrastructure to accommodate evolving technologies and investments. The Saudi Vision 2030 framework similarly stresses the importance of bolstering the digital economy, which requires substantial data center development.
Such government-backed initiatives not only lead to enhanced funding and resources for data centers but also create a favorable regulatory environment that encourages private sector participation, driving growth in data center racks.
The burgeoning growth in data consumption and the widespread adoption of cloud services in the GCC region are pivotal for the GCC Data Center Rack Market Industry. According to the Telecommunications and Digital Government Regulatory Authority in the UAE, the country's data consumption per mobile user has surged, with an average of over 17 GB per month, reflecting a significant shift towards cloud-based services. This increased demand translates to more servers and storage solutions that need accommodation, directly impacting the need for data center racks.
Major cloud service providers, such as Microsoft Azure and Google Cloud, have embarked on initiatives to establish data centers in the region, necessitating advanced rack solutions tailored for cloud infrastructure, thereby propelling the market growth.
As cyber threats grow more sophisticated and regulatory requirements tighten, the demand for secure data storage solutions is amplifying within the GCC. The Cybersecurity Strategy for Saudi Arabia prioritizes the development of secure digital infrastructure, thereby stimulating investments in data security technologies and infrastructure. Additionally, the General Data Protection Regulation adopted by the European Union impacts GCC companies that deal with the E.U.
Citizens, compelling them to adhere to stricter data protection measures. These changing regulations necessitate advanced, compliant, and enhanced data center racks that provide both security and operational efficiency. Notable organizations, like the Abu Dhabi National Oil Company, are enhancing their data security protocols, exemplifying the need for robust data center solutions to meet regulatory standards.
The GCC Data Center Rack Market comprises various components that are essential for the functioning and efficiency of data centers. The Component segment primarily encompasses Solutions and Services, which together play a critical role in ensuring optimal performance and scalability of data center infrastructure. Solutions generally include various hardware and software products that enhance data processing and storage capabilities, while Services include installation, maintenance, and support, which are vital for sustaining operational continuity in the competitive GCC landscape.
The growing demand for cloud computing and digital transformation has resulted in a significant need for robust data center infrastructures, thereby pushing the growth of both Solutions and Services in the region. As the GCC region continues to invest in smart city initiatives and digital economies, the demand for technologically advanced data center components is expected to rise. Challenges such as keeping up with rapid technological advancements and ensuring cybersecurity remain significant, making efficient Solutions and Services essential in addressing these needs.
Additionally, the increase in data generation and the necessity for localized data processing to comply with regulatory frameworks within the GCC solidify the importance of the Component segment. The evolving landscape also presents opportunities for innovative solutions that enhance energy efficiency, improve space utilization, and reduce operational costs, thereby attracting investments in this segment. Overall, the Component segment within the GCC Data Center Rack Market is pivotal in supporting the expansion and modernization of data centers, ensuring they can meet the dynamic demands of various industries.
Fig 2: GCC Data Center Rack Market Insights
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The Rack Type segment of the GCC Data Center Rack Market encompasses various configurations crucial for optimizing data center operations. Among these, Cabinets/Enclosed Racks and Open Frame Racks are notable for their unique advantages and applications. Cabinets and Enclosed Racks provide enhanced security and cooling efficiency, making them suitable for data centers that prioritize optimal environmental conditions and protection of sensitive equipment. This configuration is prominent, as it minimizes potential risks and maximizes equipment longevity.
Conversely, Open-Frame Racks promote flexibility and easy access, allowing for efficient airflow and better cable management, which is beneficial in dynamic IT environments where equipment is frequently updated or modified. The growth of digital services and cloud computing in the GCC region significantly influences these configurations, as organizations strive to enhance their infrastructure capabilities. Enhanced data center efficiency and sustainability remain key drivers in this market, motivating businesses to invest in innovative rack solutions to meet evolving demands.
As the GCC expands its digital ecosystem, the Rack Type segment is set to play a vital role in shaping future infrastructure strategies and operational efficiencies.
The Data Center Size segment within the GCC Data Center Rack Market is undergoing significant changes to meet the evolving demands of businesses and technologies. Large Data Centers, which are typically designed to support high-capacity operations, are witnessing robust growth due to the increasing need for scalable solutions among enterprises, as organizations lean heavily on cloud computing and data analytics. These facilities often dominate the market, leveraging significant investments in infrastructure and technology to deliver enhanced performance and reliability.
On the other hand, Small and Mid-sized Data Centers are becoming increasingly relevant, particularly as small to medium enterprises look for cost-effective solutions to manage their data requirements without overspending on unnecessary infrastructure. The trend toward virtualization and edge computing is creating opportunities for these smaller players to lead innovation in localized services while maintaining flexibility and agility. In the GCC region, government initiatives aimed at boosting digital transformation and support for technology startups are further fueling the growth of both categories, highlighting the importance of diverse sizes of data centers in responding to a combination of regional and global demands.
The segmentation of the Data Center Rack Market based on size is essential for understanding market dynamics, as it indicates how various players can adapt to the continuous influx of data generated by users and businesses alike. This nuanced understanding promotes efficiency, sustainability, and competitiveness across the market landscape.
The Rack Height segment of the GCC Data Center Rack Market has been gaining significant traction, reflecting the region's growing digital infrastructure needs. The classifications within this segment42U and below, 43U up to 52U, and Above 52Uplay a critical role in the optimization of space and energy efficiency in data centers. The 42U and Below category is popular among smaller facilities and enterprises, offering flexibility and sufficient capacity for various applications. In contrast, the 43U up to 52U range is often favored by medium to large enterprises, providing a balanced approach between space-saving and capacity needs, thereby addressing increasing data storage requirements.
Meanwhile, the Above 52U segment typically attracts large-scale data centers, as it maximizes vertical space utilization, allowing for significant equipment density. With rapid digital transformation in the GCC and increased demand for high-density computing, each category fulfills essential roles, aligning with the overarching trends toward sustainability and improved operational efficiency in the GCC Data Center Rack Market. The dynamic nature of this segment presents opportunities for innovation, as businesses seek new solutions to manage their evolving workloads and infrastructure needs effectively.
The GCC Data Center Rack Market encompasses a diverse range of opportunities across various industry verticals, including BFSI, Manufacturing, IT and Telecom, Retail, Healthcare, Media and Entertainment, and others. Each of these sectors plays a critical role in shaping the market dynamics and demand for data center racks. The BFSI sector is increasingly reliant on robust IT infrastructure to handle the growing volumes of data and ensure security, making it a significant contributor to data center growth. Meanwhile, the Manufacturing sector is embracing Industry 4.0, driving the need for advanced rack solutions to support automation and real-time data processing.
The IT and Telecom sector remains a major pillar, with rapid advancements in technology and the rising demand for cloud services further boosting infrastructure investments. Retail is also transforming with the increase in e-commerce, necessitating efficient data management systems. The Healthcare industry continues to leverage IT for better patient care and data management, underscoring its importance in the data center landscape. Media and Entertainment are witnessing a surge in content creation and streaming services, which drives demand for efficient data storage solutions.
Overall, the GCC Data Center Rack Market exhibits a strong growth trajectory as enterprises across these sectors strive to modernize their IT infrastructures and optimize data management capabilities.
The GCC Data Center Rack Market is experiencing notable growth as the demand for efficient and secure server storage solutions increases among enterprises navigating the digital transformation landscape. As governments and businesses across the Gulf Cooperation Council emphasize digitalization, the market is witnessing heightened competition among various service providers and manufacturers. Key players are increasingly investing in innovative technologies and solutions to enhance their offerings, aiming to provide optimum integration of data center capabilities while maintaining cost-effectiveness and energy efficiency. The competitive landscape of this market is characterized by strategic partnerships, mergers, technological advancements, and expanding product portfolios tailored to meet the growing requirements of organizations operating in this dynamic region.
Cisco Systems is a strategic leader in the GCC data center rack market, providing integrated infrastructure solutions that are specifically designed to meet the region's changing digital landscape. In order to facilitate high-performance and scalable rack systems, the organization capitalizes on its extensive array of data center, security, and networking technologies. Cisco's partnerships with major telecommunications providers and government initiatives allow it to facilitate digital transformation in cloud infrastructures and smart city projects. It is the preferred choice for enterprise and hyperscale deployments due to its modular and energy-efficient rack solutions, which are specifically engineered to accommodate hybrid cloud and AI workloads. Cisco's robust position in the GCC's expanding data center ecosystem is further bolstered by its regional training and support services, which increase consumer confidence.
Schneider Electric is a hallmark name within the GCC Data Center Rack Market, known for its comprehensive range of products and services designed for data centers. The company offers an array of rack solutions, including modular racks, power distribution units, and integrated cooling systems, designed to optimize space and energy efficiency. Schneider Electric has a robust market presence in the GCC region, capitalizing on the rising demand for sustainable energy solutions and reliable data center infrastructures. The company’s strengths lie in its innovative technologies and customer-centric approach, which aim to reduce operational costs while enhancing performance. Furthermore, Schneider Electric has actively pursued strategic mergers and acquisitions to widen its reach and diversify its offerings, positioning itself as a leader in energy management and automation, which are pivotal to the future of the data center industry in the GCC.
Schneider Electric
STC Group
Ooredoo
Cisco Systems
The GCC Data Center Rack Market has recently witnessed significant developments, including increased investments driven by the rising demand for cloud services and digital transformation initiatives across the region. Mobily and STC Group have been ramping up their data center capabilities, focusing on enhanced energy efficiency and sustainability. In September 2023, Schneider Electric announced advancements in its eco-friendly data center solutions, which are particularly relevant in the context of the GCC's commitment to reducing carbon emissions. Furthermore, Ooredoo and Axiom Telecom are expanding their data center services to accommodate growing user demands.
Notably, in June 2023, Gulf Data Hub was involved in a strategic partnership with Dell Technologies to enhance their data services, reflecting an ongoing trend in mergers and acquisitions within the sector. This partnership aims to leverage integrated technology solutions for enhanced operational efficiency. The market is projected to see continued valuation growth, bolstered by government initiatives across nations such as Saudi Arabia and the UAE aimed at enhancing the country's digital infrastructure. Major players, including DarkVerse and Cisco Systems, are also focusing on innovative solutions to strengthen their market position.
Solution
Service
Cabinets/ Enclosed Racks
Open Frame Rack
Large Data Centers
Small and Mid-sized Data Centers
42U and Below
43U up to 52U
Above 52U
BFSI
Manufacturing
IT and Telecom
Retail
Healthcare
Media and Entertainment
Others
| Report Attribute/Metric | Details |
| Market Size 2023 | 59.84(USD Million) |
| Market Size 2024 | 65.16(USD Million) |
| Market Size 2035 | 159.16(USD Million) |
| Compound Annual Growth Rate (CAGR) | 8.457% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Million |
| Key Companies Profiled | Mobily, Schneider Electric, STC Group, Ooredoo, Dell Technologies, Saudi Telecom Company, Axiom Telecom, Gulf Data Hub, Etisalat, Nexsolve, Bahrain Telecommunications Company, DarkVerse, Cisco Systems, Kuwait Telecommunications Company, Huawei Technologies |
| Segments Covered | Component, Rack Type, Data Center Size, Rack Height, Industry Vertical |
| Key Market Opportunities | Growing cloud adoption and services, Increased demand for colocation facilities, rising focus on energy efficiency, Expansion of 5G infrastructure, Migration to edge computing solutions |
| Key Market Dynamics | growing cloud services demand, rising data consumption, increasing virtualization adoption, regulatory compliance requirements, advancements in cooling technology |
| Countries Covered | GCC |
Frequently Asked Questions (FAQ) :
The GCC Data Center Rack Market is expected to be valued at 65.16 million USD in 2024.
By 2035, the GCC Data Center Rack Market is projected to reach a value of 159.16 million USD.
The expected CAGR for the GCC Data Center Rack Market from 2025 to 2035 is 8.457%.
Major players in the GCC Data Center Rack Market include Mobily, Schneider Electric, STC Group, Ooredoo, and Dell Technologies.
In 2024, the market is divided into solutions valued at 40 million USD and services valued at 25.16 million USD.
By 2035, the market value for solutions in the GCC Data Center Rack Market is expected to rise to 100 million USD.
Services in the GCC Data Center Rack Market are projected to increase to 59.16 million USD by 2035.
Emerging trends include increased demand for energy-efficient solutions and advancements in data center technologies.
Growth is driven by rising data consumption and the expansion of cloud computing services across the region.
The current global scenario has accelerated the need for robust data infrastructure and enhanced connectivity solutions in the market.
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