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International construction consultancy, Linesight, has announced several new data center contract wins in the Middle East, growing the value of its active projects to over US$500 million.
The announcement comes as a result of the unprecedented demand for computing
capacity following a dramatic shift towards online working due to the COVID-19 pandemic, compounded by cloud computing technologies and the notable transition to online retail.
The GCC data center market is expected to reach revenues of over US$2 billion by 2025, with a cumulative revenue opportunity for data centre power infrastructure providers of US$1 billion during 2019-2025. According to data from Arizton Advisory & Intelligence, the GCC data center market is expected to grow at a Compound Annual Growth Rate (CAGR) of over 3% during the same period, with companies including Etisalat, Khazna, Amazon Web Services (AWS), Khazna, Gulf Data Hub and Datamount, the prominent investors.
Furthermore, according to a YouGov survey, 88% of IT decision-makers in the UAE decided to increase their cloud spend in 2019.
As a result of the company's expertise in cost estimation, project management, benchmarking, and strategy implementation, Linesight currently has several data center
projects underway in the Middle East.
Ciaran McCormack, Regional Director for the Middle East, Linesight, said:
“Globally, the data center market has increased exponentially in recent months as a result of COVID-19 and the way the business world now interacts. Increased reliance on the internet due to stay-at-home measures, remote working, and social distancing have all contributed to an increase in market demand."
“Although the pandemic has undoubtedly highlighted the trend, the growth of the data center market is something we have witnessed for several years. As such, this is an area of our business where we have placed heightened emphasis. With an 84% repeat business rate within our network of Tier One clients, we have developed a reputation as the ‘go-to’ consultants for project and cost management of data centres in the Middle East and the rest of the world.”
“Government initiatives such as Saudi Vision 2030, Dubai Vision 2021, and New Kuwait Vision 2035, are expected to be the driving forces behind DC growth in the MEA region. This is compounded by the growth of cloud, big data, and IoT services, as well network upgrades to support 5G. Post COVID-19, we expect further demand for data centres as businesses in the Middle East adapt to a new working environment."
Since opening its Middle East regional office in Dubai in 2008, Linesight has completed data center projects in the GCC with a capital value of over US$1.5 billion, including providing cost management services on the first modular DC project in the region.
"Our understanding and expertise in delivering the critical infrastructure required for our clients ensure that we provide a seamless service of the utmost quality while delivering cost savings wherever possible,"
Linesight has a global reach, with staff in 22 offices around the world, including the Middle
East, Europe, Asia Pacific, and the USA. The company is currently working in more than 40 countries on project developments worth more than US$31 billion globally and US$7 billion in the GCC.