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. It offers reliable
storage without the limitations of portable technology, resulting in cost
reduction, efficient data management, and protection of future technological
investments while mitigating potential losses. Data centers are an integral
component of any business as they enable corporate applications and provide
services such as productivity software, high-volume e-commerce, data
management, backup, and recovery. To enhance overall application performance
and user experience, edge data centers can minimize latency for real-time,
data-intensive applications like big data analytics, artificial intelligence
(AI), and content delivery apps. For businesses lacking space, resources, or
expertise to deploy and maintain their IT infrastructure on-site, managed data
centers and colocation facilities are viable options.
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 introduced 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 Middle East &
Africa Data Center Market are 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 and among others.
Download Free Sample Report
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Attribute
|
Details
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|
Base Year
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2022
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Historic Data
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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Solution
Type
End-User
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|
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Country scope
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UAE, Saudi Arabia, Oman, Qatar, Kuwait, Bahrain, South Africa,
Egypt, Nigeria, Kenya, Rest of Middle East & Africa
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Key companies profiled
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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.
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Customization scope
|
10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
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Pricing and purchase options
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Avail
customized purchase options to meet your exact research needs. Explore purchase options
|
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
|
Report Scope:
In this report, Middle East & Africa Data Center Market has been
segmented into following categories, in addition to the industry trends which
have also been detailed below:
·
Middle East & Africa Data Center Market, By Solution:
o IT Infrastructure
o General Infrastructure
o Electrical Infrastructure
o Mechanical Infrastructure
o Others
·
Middle East & Africa Data Center Market, By Type:
o Corporate
o Web
Hosting
·
Middle East & Africa Data Center Market, By End User:
o Information Technology &
Telecom
o Government
o BFSI
o Healthcare
o Others
·
Middle East & Africa Data Center Market, By Country:
o
UAE
o
Saudi Arabia
o
Oman
o
Qatar
o
Kuwait
o
Bahrain
o
South Africa
o
Egypt
o
Nigeria
o
Kenya
o
Rest of Middle East & Africa
Competitive Landscape
Company Profiles: Detailed analysis of the
major companies present in Middle East &
Africa Data Center Market
Available Customizations:
Tech Sci Research offers customizations
according to a company’s specific needs. The following customization options
are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Middle East & Africa Data Center Market is an upcoming report to be released soon. If you wish an early delivery
of this report or want to confirm the date of release, please contact us at [email protected]