Middle East and North Africa Data Center Market Investment to Reach $8.38 Billion by 2028 - Arizton

CHICAGO, Nov. 21, 2023 /PRNewswire/ -- According to Arizton's latest research report, the Middle East and North Africa data center market is growing at a CAGR of 8.82% during 2022-2028.

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Middle East And North Africa Data Center Market Report Scope

The Middle Eastern and North African region witnessed data center investments from telecommunication service providers and global colocation operators. The market also attracted investments from cloud service providers, such as Alibaba, AWS, Oracle, and Microsoft.

MENA offers many valuable resources like oil, workers, and people with business skills. It has many countries but different in size, with varying policies of government and financial conditions. Despite all these, each country demands investment in data centers as the digitalization and advancement in IT/Telecom/Financial sectors are causing huge data generation. For instance, in May 2023, Khazna Data Centers and Benya Group signed an MoU to establish Egypt's first hyper-scale data center at Maadi Technology Park, with a total investment of USD 250 million. This marked Khazna's expansion into Egypt. The data center will support Egypt's digital infrastructure needs and further Khazna's international growth strategy.

Key Highlights

• Major global cloud service providers, including Amazon Web Services, Tencent, Microsoft, Google, Alibaba, Oracle, and Huawei Technologies, have a presence in the Middle East and North Africa (MENA) data center market. For instance, Microsoft intends to establish a cloud region in Saudi Arabia.
• The presence of industrial parks, available land, and government support serve as incentives for operators to develop data centers in various Middle Eastern and African countries. For instance, the Bahrain government has announced the launch of its first data center park, with stc Bahrain collaborating with the Ministry of Transport and Telecommunications to develop the first data center within the park.
• The Middle East and North Africa data center market is experiencing continuous growth in connectivity, with the deployment of new submarine cables such as Africa-1, 2Africa, India Europe Xpress (IEX), Raman, Saudi Vision, Blue, Equiano, Medusa Submarine Cable System, and SeaMeWe – 6. These cables are expected to become operational during the forecast period, enhancing regional connectivity.

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Segmentation Insights

• In data center development, there is a widespread focus on achieving a Power Usage Effectiveness (PUE) rating of less than 1.5 for most facilities. However, in countries like Turkey, where partial free cooling is adopted during peak winter months, the aim is to achieve an even more efficient PUE of less than 1.3.
• The Middle East and North Africa data center market is making substantial investments in the power infrastructure, ensuring a minimum of N+1 redundancy. In 2022, Uninterruptible Power Supply (UPS) systems held a significant market share, accounting for over 30% of the total electrical infrastructure in data centers.
• Given the high-temperature climate in some countries within the Middle East and North Africa region, there is a notable emphasis on investing in cooling infrastructure. In 2022, more than 65% of the total mechanical infrastructure investment was directed toward cooling systems by service providers.
• The Middle East and North Africa data center market has witnessed a notable trend in deploying data centers with Tier III and IV certifications during the design and construction phases. Many private and public entities, including those in the banking, financial services, and insurance (BFSI) sector, education, and government, have sought and received Uptime Institute's Tier III/IV certification either during the design phase or after the facility's construction.

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Vendors

Prominent Data Center IT Infrastructure Providers

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

Prominent Support Infrastructure Providers

• 4Energy
• ABB
• Airedale
• Canovate
• Caterpillar
• Cummins
• Delta Electronics
• EAE Group
• Eaton
• Envicool
• HITEC Power Protection
• Johnson Controls
• Legrand
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Vertiv

Prominent Data Center Construction Constructors

• AECOM
• AlDar Properties
• Anel Group
• Arup
• Ashi & Bushnag
• Atkins
• Advanced Vision Morocco
• ARSMAGNA
• Dar Group
• DC Pro Engineering
• Deerns
• Edarat
• EGEC
• ENMAR ENGINEERING
• Harinsa Qatar
• HATCO
• HHM Building Contracting
• Hill International
• ICS Nett
• INT'LTEC
• ISG
• LAING O'ROURKE
• Linesight
• M+W Group (Exyte)
• Mace
• Mercury Engineering
• McLaren Construction Group
• MIS
• NDA Group
• Orascom Construction
• Prota Engineering
• Qatar Site & Power
• RED Engineering
• RW Armstrong
• Shaker Group
• Sterling and Wilson
• Summit Technology Solutions
• Sudlows
• Telal Engineering & Contracting
• Turner & Townsend
• United Egypt

Prominent Data Center Investors

• Africa Data Centres
• Adgar Investments and Development
• Amazon Web Services
• Batelco
• Bynet Data Communications
• Equinix
• EdgeConneX
• Future Digital Data Systems
• Gulf Data Hub
• Google
• Khazna Data Centers
• Moro Hub
• MedOne
• MEEZA
• Mobily
• Microsoft
• Oman Data Park
• Ooredoo
• stc
• Serverfarm
• Turkcell
• Türk Telekom
• Telecom Egypt
• Tencent

New Entrants

• Compass Datacenters
• Digital Realty
• EDGNEX
• Global Technical Realty
• Infinity
• Quantum Switch
• ZeroPoint DC (NEOM)

Market Segmentation

• Infrastructure: IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, and General Construction
• IT Infrastructure: Server Infrastructure, Storage Infrastructure, and Network Infrastructure
• Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgear, PDUs, and Other Electrical Infrastructure
• Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure
• Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers, & Dry Coolers, and Other Cooling Units
• Cooling Technique: Air-based Cooling and Liquid-based Cooling
• General Construction: Core & Shell Development, Installation & Commissioning Services, Building & Engineering Design, Physical Security, and DCIM/BMS Solutions
• Tier Standard: Tier I & II, Tier III, and Tier IV
• Geography: Middle East (UAE, Saudi Arabia, Israel, Oman, Qatar, Kuwait, Bahrain, and Other Middle Eastern Countries) and North Africa (Morocco, Egypt, and Other North African Countries)

Key Questions Answered in the Report:

How big is the Middle East and North Africa data center market?

What is the growth rate of the Middle East and North Africa data center market?

What is the estimated market size in terms of area in the Middle East and North Africa data center market by 2028?

What are the key trends in the Middle East and North Africa data center market?

How many MW of power capacity is expected to reach the Middle East and North Africa data center market by 2028?

Check the Detailed Table of Contents of the Report @ https://www.arizton.com/market-reports/middle-east-and-north-africa-data-center-market?details=tableOfContents

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