Middle East & Africa Data Center Market By Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure and Others), By Type (Corporate and Web Hosting), By End-User (Information Technology & Telecom, Government, BFSI, Healthcare and Others), By Country, Competition Forecast & Opportunities 2028
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: ICT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationMiddle East & Africa Data Center Market By Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure and Others), By Type (Corporate and Web Hosting), By End-User (Information Technology & Telecom, Government, BFSI, Healthcare and Others), By Country, Competition Forecast & Opportunities 2028
The Middle East & Africa Data Center Market is experiencing growth driven by the increasing demand for online gaming, which is pushing market expansion. Data centers have emerged as prominent technologies for enhancing site speed and website performance. Many enterprises are integrating data center infrastructure to meet the growing needs for improved performance, increased reliability, and cost savings. The market is further boosted by the rising preference and demand for computer and storage capacity among businesses. Service providers are offering enhanced infrastructure and cutting-edge services to meet the high usage of digital solutions across e-commerce, IT, media & entertainment, and online gaming sectors. Additionally, the growth of the market is attributed to the increasing adoption of cloud-enabled services, enabling advanced website security, improved content availability, reduced network latency, and leveraging technologies like the Internet of Things (IoT), 5G Infrastructure, real-time analytics enabled by Machine Learning (ML) and Artificial Intelligence (AI) across the region. As digitization progresses and technology continues to facilitate excellence, the Middle East & Africa data center market is expected to witness steady growth throughout the projected period.
A data center is a physical location with networked computers, storage systems, and computational infrastructure that businesses utilize to store, gather, analyses, and disseminate massive quantities of data
Rapid Adoption of Cloud and Digital Transformation by Companies
The digital transformation journey of the Middle East & Africa region has been progressing at a remarkable pace with the widespread adoption of cloud computing. The rapid advancement of technology has prompted countries in the region to quickly embrace digital technologies, leading to substantial long-term economic benefits. Many global cloud service providers have established their availability zones and data scrubbing centers in strategic locations such as Bahrain, UAE, and other countries, taking advantage of strong fiber connections, favorable land conditions, and submarine infrastructure. Microsoft, Amazon Web Services (AWS), Huawei Cloud, and others are building availability zones (AZs) to ensure high availability (HA) and low latency. Moreover, major enterprises like Google Cloud Platform (GCP) and Oracle have announced plans to establish cloud regions in the Middle East & Africa, attracting the establishment of new data centers by Google, Alibaba Group, AWS, and Microsoft. For example, AWS launched its first Amazon CloudFront edge locations in the UAE in 2018 and expanded its presence with the introduction of new Azure availability zones in 2022. Khazna Data Centers is also contributing to the region's digital infrastructure by constructing Egypt's first state-of-the-art hyperscale data center at the Maadi Technology Park, a project valued at USD 250 million. While large enterprises have already embraced cloud adoption, medium-sized and small companies are also embarking on their cloud journeys. Notably, both the private sector and the government are actively promoting and accelerating cloud adoption in the region.
Furthermore, in order to stay ahead of the curve, governmental organizations have implemented various grants and incentives to facilitate and guide the advancement of digitalization. For instance, through collaboration with the Qatar Free Zone Authority (QFZ) and the Minister of Communications and Information Technology (MCIT), multiple initiatives have been undertaken by different entities. These initiatives, such as investing in cloud infrastructure to support Qatar's National Vision 2030, aim to provide a digital future and enhance technological capabilities through innovation and digital transformation. The objective is to encourage small and medium-sized enterprises (SMEs) across various sectors to automate processes and digitize their operations, resulting in increased production and efficiency. With the utilization of cloud computing and digital technologies, these businesses generate vast amounts of data, necessitating specific types of data centers. Moreover, the demand for cloud-managed services is expected to rise due to the growing number of businesses embracing remote work policies. As a crucial component of digital transformation, the rapid adoption of cloud computing and digitalization by companies is driving the growth of the Middle East & Africa Data Center Market.
Growing IT and Telecom Sector will drive Middle East & Africa Data Center Market
The IT and telecom sector in the Middle East & Africa is witnessing rapid growth, driven by increasing internet connectivity and digital transformation. This expansion is fueling the demand for data center systems, making the sector a significant contributor to the region's economy, especially in South Africa. As businesses rely more on technology-driven processes, the need for reliable power backup solutions becomes crucial to ensure uninterrupted operations. Data center systems play a vital role in providing an uninterrupted power supply, safeguarding critical IT infrastructure during power-related issues and minimizing downtime. From micro businesses to multinational firms, all businesses depend on a solid IT infrastructure, which serves as the foundation for their operations
Moreover, the demand for data center systems is being propelled by the expanding telecom industry in the Middle East and Africa. This sector is experiencing rapid growth due to the widespread use of smartphones, the adoption of high-speed internet, and the expansion of digital services. As businesses increasingly digitize and embrace technology, the telecoms sector's expansion directly contributes to the growth of other industries. To ensure uninterrupted connectivity for voice calls, data services, and emerging technologies like 5G, telecommunications networks require constant and reliable connectivity. In 2021, Vodacom, a South African mobile provider, reported a remarkable 19.2% increase in data traffic and an 8.2% rise in mobile data subscribers. Data center systems play a crucial role in providing backup power to ensure the continuous operation of telecom infrastructure, including base stations, switches, routers, and data centers. The growing investment in data centers is also driving the expansion of the data center market in South Africa. According to Africa Data Centres, the African data center sector is expected to receive USD5 billion in investments by 2026, with USD3.1 billion of that coming from South Africa. To maintain the efficient operation of servers, storage systems, and networking equipment, data centers require a stable power supply. Any power outage has the potential to result in data loss, downtime, and financial losses. In such situations, data center systems offer a seamless and rapid transition to backup power, safeguarding the critical infrastructure of data centers and preventing data loss. As the sector continues to thrive, data center manufacturers will continue to innovate and provide customized solutions to meet the evolving power backup needs of businesses in South Africa
Growth in Investment in the Data Center by the Enterprises
Countries in the Middle East & Africa are emerging as data center hubs, attracting and retaining investors with supportive pro-business policies. The new government is committed to accelerating digital adoption, which bodes well for the domestic data center industry. Investments are being made to meet the rising demand for data center space in the MEA region. Amazon Web Services (AWS), for example, plans to invest 30.4 billion South African Rands (about USD 1.8 billion) in South Africa's cloud infrastructure by 2029. Additionally, several MEA countries have launched new investment policies that promote economic complexity and drive data center investments. The availability of knowledgeable and qualified personnel further enhances the country's competitive advantage in attracting foreign direct investments crucial to the data center industry. Domestic and international enterprises are expanding their presence in the country by building large hyperscale campuses, such as Agility Logistics Parks (APL), which is developing new data center campus locations in Saudi Arabia, Kuwait, Egypt, and Ghana. The region is witnessing increased expansion and investments in data centers, like the recent collaboration between GPX Global Systems and Redcon Group to invest in a new data center in Egypt. With this investment, the GPX Cairo 2 data center will expand, adding more equipped area, power, racks, and square meters. The growing investments in data centers by enterprises are driving the growth of the Middle East & Africa data center market
Market Segments
The Middle East & Africa Data Center Market is categorized by solution, type, and end user. In terms of solution, the market comprises IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, and Others. The market is segmented by type into Corporate and Web Hosting. The end users include Information Technology & Telecom, Government, BFSI, Healthcare, and Others.
Market Players
Major market players of
| Attribute | Details |
| Base Year | 2022 |
| Historic Data | 2018 – 2021 |
| Estimated Year | 2023 |
| Forecast Period | 2024 – 2028 |
| Quantitative Units | Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028 |
| Report coverage | Revenue forecast, company share, growth factors, and trends |
| Segments covered | Solution Type End-User |
| Country scope | UAE, Saudi Arabia, Oman, Qatar, Kuwait, Bahrain, South Africa, Egypt, Nigeria, Kenya, Rest of Middle East & Africa |
| Key companies profiled | Africa Data Centres (Cassava Technologies), Equinix, Inc., Open Access Data Centres (OADC), Khazna Data Centers, Gulf Data Hub, Amazon Web Services (AWS), Detasad (Detecon Al Saudia Co. Ltd.), Teraco Data Environments (Pty) Ltd., Future Digital Data Systems (FDDS), Vantage Data Centers, LLC. |
| Customization scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy