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Middle East and Africa Data Center Colocation Markets 2022-2027 - Migration from On-Premise Infrastructure to Colocation & Managed Services Bodes Well for the Growing SectorDUBLIN, Dec. 29, 2022 /PRNewswire/ -- The "Middle East and Africa Data Center Colocation Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering. 
In the Middle East & Africa, Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Israel, Turkey, Lebanon, Yemen, Iran, South Africa, Egypt, Nigeria, Kenya, Morocco, and Djibouti are some of the countries with more submarine cable connectivity, which connects Americas, European, and Asian countries boosting the Middle East and Africa data center colocation market. MARKET TRENDS COVID-19 Impact on Data Center Investments Due to the COVID-19 pandemic, the demand for data center services in the Middle East & Africa has increased with the heightened access to internet-related services aided by nationwide lockdowns imposed by governments in March 2020. Online shopping, even post-COVID-19, has increased the demand for online platforms compared to traditional shopping. In Turkey, there was an 85% increase in online shopping YOY, and the e-commerce sector in Turkey expects to reach over USD 50 million by the end of 2021. For instance, Carrefour, a retail grocery company, witnessed a sales increase of around 50% in Q1 2020. Such factors are becoming a major contributor to the growth of the Middle East and Africa data center colocation market Smart City Initiatives Across Several Countries Aiding the Growth of Digitalization In the Middle East and Africa, several companies and governments have taken the initiative to invest in the development of smart cities. The development of smart cities is aiding the growth in digitalization and further driving the demand for data center construction. Some smart city initiatives in the Middle East and Africa data center colocation market include the Dubai South project and Zayed Smart City Project. Several cities are being developed as smart cities, including Dubai, Abu Dhabi, Cape Town, Lagos, Nairobi, Bezeq, and others 5G Deployments Will Drive Edge Data Center Investments The Middle East & African countries are working toward adopting digital transformation to attract foreign investments. 5G network deployment fuels the digital transformation, IoT, smart cities, and the fourth industrial revolution. Some telecom operators in the Middle East & Africa have deployed 5G network services, and some are in 5G trials. The Middle East & African countries such as the UAE, Saudi Arabia, Oman, Kuwait, Bahrain, Qatar, and South Africa commercially deployed 5G network services Turkey, Israel, Jordan, Lebanon, Iran, Nigeria, Kenya, Angola, and Uganda are other the Middle East & African countries in 5G planning and are yet to deploy commercial services during the forecast period. Rapid investments in 5G technology and their deployment will increase the number of connected devices, leading to the generation of a substantial quantity of data, thereby increasing investments in edge data centers in the Middle East and Africa data center colocation market SEGMENTATION ANALYSIS The colocation services segment in the iddle East and Africa data center colocation market is dominated by retail colocation with a market share of 67%. It is expected to grow with a CAGR of 10.99%; it is supported by construction from several local and global colocation operators. Although the presence of cloud service providers is steadily growing, that is expected to boost the wholesale colocation in the region. Some countries in the market are witnessing growth in demand from cloud service providers. Hence, the wholesale colocation space is expected to grow at a higher CAGR during the forecast period Most centers operating in the Middle East and Africa data center colocation market are adopting N+N redundant infrastructure, while most centers are designing facilities with space for installing up to 2N redundant UPS systems to cope with diverse feed designs of the facility and frequent power outages. In most Tier III facilities, UPS systems are adopted as N+1 redundant systems, while other facilities have installations of N+N UPS systems Edge facility deployment will include single-phase lithium-ion UPS and monitored and switched PDUs. Therefore, emerging edge facilities will majorly boost the Middle East and Africa data center colocation market growth REGIONAL ANALYSIS The Middle East and Africa data center colocation market attracted investments from cloud service providers such as Google, Amazon Web Services, Microsoft, Oracle, and Tencent across the Middle East. Major cloud service providers are expanding their presence in the region during the forecast period, which drives the demand for wholesale colocation services in the region Regarding investment, Abu Dhabi is the preferred location, with major investments from colocation, enterprise, and government entities. In 2021, Dubai witnessed investments from colocation service providers such as Equinix, Moro Hub, and Gulf Data Hub The Kingdom of Saudi Arabia has implemented its Vision 2030 economic strategy to boost the technology sector. It plans to use 5G to support 45 million IoT devices, generating a market worth USD 12 billion. In Saudi Arabia, some significant drivers that complement the Middle East and Africa data center colocation market are cloud adoption, smart city developments, 5G network deployments, digitalization, and submarine cable connectivity investments VENDOR LANDSCAPE Vendors are increasing their presence in the Middle East & African countries, which is likely to boost revenue growth, primarily due to the increased construction of large data centers in countries such as UAE, Saudi Arabia, South Africa, and Israel. The Middle East and Africa data center colocation market is expected to witness more mega data center constructions to cope with the expected growth in demand for wholesale colocation by cloud service providers, which will likely add revenue opportunities for infrastructure providers under their respective operating segments. Many operators are also adopting units from different vendors to provide efficient cooling solutions for the facility. Several operators depend on local resellers and skilled local experts for installation, commissioning, and maintenance services. Several infrastructure providers in the market offer specific products or a complete range of infrastructure solutions suitable for data centers. In the Middle East & Africa, the construction of data centers is increasing significantly, and greenfield data center development is growing YOY and witnessing a strong contribution from modular data centers in the region. The Middle East and Africa data center colocation markets have global and local construction contractors and engineering and architectural firms. The growth in the market will provide opportunities for local sub-contracts in construction, engineering, and architectural verticals. Market Dynamics Market Opportunities & Trends
Market Growth Enablers
Market Restraints
Prominent Support Infrastructure
Prominent Construction Contractors
Prominent Data Center Investors
New Entrant
Segmentation by Colocation Service
Segmentation by Infrastructure
Segmentation by Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Segmentation by Cooling Systems
Segmentation by Cooling Technique
Segmentation by General Construction
Segmentation by Tier Standard
For more information about this report visit https://www.researchandmarkets.com/r/m4most Media Contact: Research and Markets Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg SOURCE Research and Markets 
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