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Middle East and Africa Data Center Construction Market Size, Share, & Trends Analysis Report by Electrical Infrastructure (UPS, Generators, Transfer Switches & Switchgears, Rack PDUs, and Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems, Racks, and Other Mechanical Infrastructure), General Construction (Building Development, Installation & Commissioning Services, Building Designs, Physical Security, and DCIM),Tier Standards (Tier I & Tier II, Tier III and Tier IV), and Geography (Middle East and Africa), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020-2025
|MARKET SIZE (REVENUE)||USD 1.3 BILLION (2025)|
|MARKET SIZE (AREA)||1.4 MILLION SQUARE FEET (2025)|
|MARKET SEGMENTS||Electrical Infrastructure (UPS, Generators, Transfer Switches & Switchgears, Rack PDUs, and Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems, Racks, and Other Mechanical Infrastructure), General Construction (Building Development, Installation & Commissioning Services, Building Designs, Physical Security, and DCIM),Tier Standards (Tier I & Tier II, Tier III and Tier IV)|
|COUNTRIES COVERED||Saudi Arabia, UAE, Turkey, Jordan, Other Middle East Countries, South Africa, Morocco, Egypt, Kenya, Nigeria, and Other African Countries|
The Middle East and Africa data center construction market size to reach USD 1.3 billion by 2025, growing at a CAGR of 5% during the forecast period. The Middle East and Africa data center construction market share is expected to grow on account of the growth in internet penetration, social media usage, and smart city initiatives across the region. The demand for cloud computing, big data, and IoT technologies is likely to emerge as a prominent driver for data center development in the Middle Eastern region. Countries across the Middle East are likely to witness the improvement in network connectivity via the installation of inland and submarine network connectivity.
The construction of traditional brick-and-mortar facilities is also growing along with the rising deployment of modular facilities. The Middle East data center market is attracting significant investments in recent years, led by countries such as UAE, Bahrain, Qatar, Turkey, Jordan and Saudi Arabia.
South Africa continues to dominate the Africa data center construction market. In 2019, Morocco witnessed higher investments followed by Egypt, Kenya, and Nigeria. Colocation and telecommunication service providers are major investors in Africa, followed by enterprises and governments agencies. The increase in internet penetration, smartphone users, and improvement in broadband connectivity is aiding the growth of data across African countries.
South Africa, Kenya, Morocco, Egypt and Nigeria are at the forefront of several initiatives to improve their digital economy. These countries along with cloud-based service adoption, have also witnessed an increase in the use of big data analytics and initiatives to build smart cities.
This research report includes a detailed segmentation by
The adoption of lithium-ion batteries will emerge in the next two years in UAE and Saudi Arabia countries. However, the use of lithium-ion, will pick up in the next 3-4 years in Africa countries, as many operators start to build large and hyperscale facilities. The market for generators will continue to grow because of the continuous construction of large and mega facilities in the region. The adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) systems is also growing since these systems combine both battery and flywheel UPS topology and a diesel generator to provide backup power during outages.
In the MEA region, modular data center deployments will include low-voltage switchgears as they are economical and efficient. The use of basic PDUs will continue to decline during the forecast period. Thus, aiding in the growth of intelligent PDU products in the market. In terms of rack density, African countries will continue to operate rack PDUs of less than 5 kW. However, in the Middle East, both below and above 5 kW per racks will be installed.
Data centers operated in Middle East countries do not support the use of free cooling systems. The Middle Eastern data centers market is adopting water-based cooling systems. The direct liquid cooling and immersion cooling solutions are likely to emerge in the market through the deployment of artificial intelligence and machine learning workloads in IoT and big data environment.
Data centers in Africa support the use of free cooling systems. Free cooling can be used only during the winter season in African countries. This increases the adoption of free cooling chillers. Operators in this region are still dependent on air-based cooling techniques. Dedicated facilities are witnessing the use of chilled water systems. South Africa is likely to move toward the adoption of free cooling chillers or evaporative coolers. Similarly, facilities in Egypt adopt air cooling systems and energy-saving chiller units.
The data center market in Saudi Arabia has the presence of both local and global data center contractors. The market lacks a strong skilled workforce to accommodate the growing need for data center operational personnel. However, the facility investments are likely to increase the skilled workforce during the forecast period. The UAE will aid in the growth of greenfield projects as well as modular data centers. The country also has a strong presence of local as well as global data center contractors in the design, construction, installation, and commissioning services.
A majority of data center development in Turkey is greenfield type, whereas modular facilities are confined to enterprise on-premise deployments. In terms of construction, most colocation facilities in South Africa have installed physical security solutions, ranging from perimeters to video surveillance to biometric systems. The rapid growth in colocation data centers will increase the investment in physical security systems in the African market. Data center facilities in Morocco are installing 24X7 physical security with CCTV surveillance, and intrusion detection devices.
Currently, operators in Middle East & Africa are spending on infrastructure across Tier I and Tier II facilities, while focusing on adding redundant infrastructure for power. These data centers have a power capacity of less than 1 MW and are not involved in running mission-critical applications. A majority of under-developed projects across the region fall under the Tier III category. This trend is likely to continue during the forecast period.
Around eight data centers, which were opened in 2019, are of Tier III standard. About 10 Tier III data centers, which were under construction in 2019, are expected to open by Q1 & Q2 of 2020. Tier IV data centers are equipped with at least 2N+1 redundancy in every infrastructure that makes the facility fault-tolerant, with UPS systems and PDUs having 2N+2 redundancy. Amazon Web Services’ data center in Bahrain is one of the major contributors to the Middle East Tier IV market.
The demand for cloud computing, big data, and IoT technologies will be a predominant driver for data center development in the Middle Eastern region. The investment in the market is aided by the construction of facilities by telecommunication providers, enterprises, government, cloud, and colocation service providers. Similarly, the investment in Africa is growing significantly, aided by the construction of data centers by telecommunication providers, enterprises, government, cloud, and colocation service providers.
Over the last few years, the region witnessed interest from leading cloud service providers such as AWS and Microsoft. Huawei also has a strong presence in the market and provides modular data center solutions for enterprise and government agencies. The demand for cloud services is growing among SMEs in the African region. It is expected that over 50% of the organizations operating in the African region will shift to cloud services by 2025.
Multiple electrical infrastructure providers operate in the MEA data center construction market. The growing data center construction market is prompting providers to improve the efficiency of solutions that are currently being offered. Many countries in the region suffer from frequent power fluctuations and power outages. This will enable operators to adopt efficient power backup solutions, with UPS systems that offer over 95% efficiency.
The market for VRLA UPS systems will continue to dominate the market. However, the share of VRLA UPS systems will start declining by the end of the forecast period. Schneider Electric, Vertiv, and Huawei have a strong presence in the market.
Segmentation by Electrical Infrastructure
By Mechanical Infrastructure
By General Construction
By Tier Standards
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