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Middle East & Africa Data Center Market Size by Investment to Reach USD 9.12 Billion by 2026 - Arizton
[September 13, 2021]

Middle East & Africa Data Center Market Size by Investment to Reach USD 9.12 Billion by 2026 - Arizton


In-depth analysis and data-driven insights on the impact of COVID-19 included in this Middle East & Africa data center market report.

CHICAGO, Sept. 13, 2021 /PRNewswire/ -- The Middle East & Africa data center market is expected to grow at a CAGR of over 10.38% during the period 2020-2026.

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Key Highlights Offered in the Report:  

1.  The Middle East & Africa (MEA) market is experiencing increased demand for data centers owing to increased development of internal and subsea connectivity, increased internet adoption as a result of COVID-19, and digital transformation by enterprises. The emergence of advanced technology such as IoT and AI, 5G adoption, and smart city initiatives are also driving demand.

2.  The increased adoption of colocation and cloud-based services by enterprises are driving the construction of hyperscale data centers by companies such as Teraco Data Environments, Africa Data Centres, stc, Khazna Data Centers, and MainOne among others in the region.

3.  In 2020, the Middle East accounted for around 55% of the overall investment received in MEA, while Africa accounted for the remaining share. Countries such as South Africa, Kenya, Nigeria, Saudi Arabia, UAE, and Israel will drive data center demand in the region in coming years.

4.  Cloud service providers are also expanding their presence across the region. For instance, Microsoft and its partners in the region are expected to spend over USD 2 billion in data center services in the UAE to grow their local business in the region. In addition, in February 2021, Oracle opened an underground cloud region in Jerusalem, Israel.

5.  The MEA market is a significant adopter of modular data center design and development, to manage challenges faced by the region, such as high PUE, increased operational cost, and lack of skilled labor. For instance, Khazna has implemented modular data centers in its UAE facilities. Also, Zain invested in a prefabricated data center with a power capacity of around 5 MW in 2020, built by Huawei Technologies.

Key Offerings:

  • Market Size & Forecast by Revenue | 2020-2026
  • Market Size & Forecast by Area (Sq feet) | 2020-2026
  • Market Size & Forecast by Power Capacity (MW) | 2020-2026
  • Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
  • Market Segmentation – A detailed analysis by infrastructure, IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, and geography
  • Competitive Landscape – 10 IT infrastructure providers, 19 construction contractors, 14 support infrastructure providers, and 28 data center investors

Get your sample today! https://www.arizton.com/market-reports/middle-east-africa-data-center-market 

Middle East & Africa Data Center Market – Segmentation

  • Vendors are also innovating their products with new technologies such as artificial intelligence and machine learning. The servers comprising AI offer features such as analytics for data, ease in developing AI-enabled apps, and flexible deployment of data. Also, the servers that run on ML applications are installed on-premises, in cloud platforms, and on a variety of operating systems.
  • UPS systems are installed across three major locations in a data center: centralized (overall facility), row-level, and rack-level. In the Middle East & Africa, there is a rise in the deployment of edge data centers; also, colocation data center operators are investing in the region. However, the placement of these systems is highly dependent on the facility design. In terms of adoption, the use of 750-1,500 kVA systems has increased along with a contribution from <500 kVA UPS systems.
  • A few Tier III facilities are also being developed with 2N redundancy for CRAC & CRAH units. For instance, Telecom Italia Sparkle S.p.A in Turkey is equipped with chiller cooling systems, N+1 pump for protection, and N+1 CRAC units per area. The placement of cooling units other than CRAC & CRAH units depends on the facility design and is based on several parameters such as hotspots, circulation of cold and hot ai, and implementation of hot/cold aisle containment.



Middle East & Africa Data Center Market by Infrastructure

    • IT Infrastructure
    • Electrical Infrastructure
    • Mechanical Infrastructure
    • General Infrastructure

Middle East & Africa Data Center Market by IT Infrastructure


    • Servers
    • Storage
    • Network

Middle East & Africa Data Center Market by Electrical Infrastructure

    • UPS Systems
    • Generators
    • Transfer Switches & Switchgear
    • Power Distribution Units
    • Other Electrical Infrastructure

Middle East & Africa Data Center Market by Mechanical Infrastructure

    • Cooling Systems
    • Racks
    • Other Mechanical Infrastructure

Middle East & Africa Data Center Market by Cooling System

    • CRAC & CRAH Units
    • Chiller Units
    • Cooling Towers, Condensers & Dry Coolers
    • Other Cooling Units

Middle East & Africa Data Center Market by Cooling Technique

    • Air-Based Cooling Technique
    • Liquid-Based Cooling Technique

Middle East & Africa Data Center Market by General Construction

    • Building Development
    • Installation & Commissioning Services
    • Building Design
    • Physical Security
    • DCIM/BMS Solutions

Middle East & Africa Data Center Market by Tier Standard

    • Tier I & II
    • Tier III
    • Tier IV

Middle East & Africa Data Center Market – Dynamics

Various countries in the Middle East & Africa have a long-term vision of renewable energy installation, which will propel data center investments further since many data center operators intend to use renewable energy in their data centers in the medium to long term. The Middle East & Africa region is an emerging leader in microgrid capacity, wherein the grid-connected, on-site energy generation or storage plants help data centers to control power costs more efficiently by saving on peak demand costs charged by traditional grid facilities in many countries. Over the last few years, countries in the Middle East such as the UAE, Qatar, Kuwait, and Saudi Arabia have been working on incorporating renewable energy in their energy generation. Africa has an abundance of solar energy. Moreover, the region has an unstable power grid supply, owing to which data centers are procuring renewable energy in the region. South Africa is witnessing more investments from both global and local data center operators.

Key Drivers and Trends fueling Market Growth:

  • 5G to Grow Edge Data Center Investments
  • Smart City Initiatives Fuel Data Center Deployments
  • Migration from On-Premises Infrastructure to Colocation & Managed Services
  • Rising Data Center Investments

Middle East & Africa Data Center Market – Geography

As of January 2021, the total population of the UAE was around 9.94 million, and the internet penetration in the country was around 99%. The UAE is one of the preferred data center investment locations in the Middle East, attracting investments in around four colocation data center facilities in 2020. The colocation service providers were Khazna Data Centers, Etisalat, and Equinix. Rapid development in network connectivity, government support, and growth in the adoption of cloud, big data, and IoT services have been strong drivers for the growth of the UAE data center market. The rising adoption of cloud-based services is leading to the growth of retail and wholesale colocation services in the region. The market is witnessing an increase in the demand for colocation spaces across existing and upcoming data centers. Some of the leading cloud service providers such as Oracle, Alibaba Cloud, Microsoft Azure, and IBM have a presence in the country.

Get your sample today! https://www.arizton.com/market-reports/middle-east-africa-data-center-market 

Middle East & Africa Data Center Market by Geography

    • Middle East
      • UAE
      • Saudi Arabia
      • Turkey
      • Jordan
      • Other Middle Eastern Countries
    • Africa
      • South Africa
      • Kenya
      • Morocco
      • Nigeria
      • Egypt
      • Other African Countries

Major Vendors

Prominent IT Infrastructure Vendors

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise (HPE)
  • Huawei Technologies
  • International Business Machines (IBM)
  • Lenovo
  • NetApp

Prominent Construction Contractors

  • Atkins
  • Arup
  • Chess Enterprises
  • DC PRO
  • Deerns
  • Enmar Engineering
  • Edarat Group
  • Future-tech
  • Harinsa Qatar (HQ)
  • ICS Nett
  • Interkel Group Africa
  • ISG
  • Laing O'Rourke
  • Linesight
  • McLaren Construction Group
  • NLE
  • Qatar Site and Power (QSP)
  • RED
  • Turner & Towsend

Prominent Data Center Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • HITEC Power Protection
  • Johnson Controls
  • Legrand
  • Rittal
  • Rolls-Royce Power Systems
  • Schneider Electric
  • Shenzhen Envicool Technology
  • STULZ
  • Vertiv Group

Prominent Data Center Investors

  • 21st Century Technology
  • Africa Data Centres
  • Amazon Web Services (AWS)
  • Akbank
  • Bahrain Telecommunications Company (BATELCO)
  • Etisalat Group
  • Equinix
  • Galaxy Backbone
  • Gulf Data Hub
  • Turkcell
  • Telecom Italia Sparkle
  • icolo.io
  • Internet Technologies Angola
  • inwi
  • IXAfrica Data Centre
  • Khazna Data Centers
  • MainOne (MDXi)
  • Medallion Communications
  • Etihad Etisalat (Mobily)
  • N+ONE Datacenters
  • Orange
  • PAIX Data Centres
  • Rack Centre
  • Raxio Group
  • Raya Data Center
  • Teraco Data Environments
  • Vantage Data Centers
  • Zain 

Explore our data center knowledge base profile to know more about the industry.

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About Arizton:

Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.

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