
The Middle East And North Africa (MENA) Data Center Market Research Report Includes Size, Share, and Growth in Terms of
Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2023–2028.
Report Attribute | Details |
---|---|
Market Size (2028) | USD 8.38 Billion |
Market Size (2022) | USD 5.04 Billion |
CAGR BY REVENUE (2022-2028) | 8.84% |
MARKET SIZE - AREA (2028) | 2.77 Million Square Feet |
POWER CAPACITY (2028) | 542.5 MW |
BASE YEAR | 2022 |
FORECAST YEAR | 2023-2028 |
MARKET SEGMENTS | Infrastructure, IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standard, and Geography |
GEOGRAPHIC ANALYSIS | 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) |
The Middle East and North Africa data center market was valued at USD 5.04 billion in 2022 and is expected to reach USD 8.38 billion by 2028, growing at a CAGR of 8.84%. The market is poised for continued growth in the coming years due to increasing internet penetration, the widespread use of social media, and various innovative initiatives. Data center investments are being made by telecommunication providers, enterprises, government agencies, cloud service providers, and colocation service providers, with a strong focus on expanding infrastructure. Furthermore, numerous countries in the Middle East and North Africa are witnessing a surge in both inland and submarine network connectivity installations, thereby supporting market growth.
Procurement of Renewable Energy
The Middle East and North Africa (MENA) data center market is experiencing a significant surge in the adoption of renewable energy sources. Numerous countries in this area have initiated renewable energy projects as part of their respective governments' efforts to achieve carbon-neutral goals. For example, the United Arab Emirates (UAE) has set ambitious targets in its Energy Strategy 2050, intending to increase the proportion of renewable energy in its total energy mix from 25% to 50% by 2050.
Similarly, Saudi Arabia has launched the National Renewable Energy Program (NREP) under Vision 2030, encompassing 13 projects that are anticipated to generate over 4.8 gigawatts (GW) of renewable energy. Additionally, Bahrain has outlined plans to produce approximately 280 megawatts (MW) of electricity from renewable sources by 2025, to reach around 700 MW by 2030 to meet national renewable energy targets. Furthermore, Saudi Arabia's 2030 Vision includes the development of ten renewable energy projects with a combined capacity of 7 GW, marking a significant step in the kingdom's renewable energy journey.
Quantum Switch Tamasuk (QST) has forged a partnership with the Ministry of Communications and Information Technology (MCIT) in Saudi Arabia. This collaboration not only involves the development of data center facilities but also focuses on sourcing and advancing renewable energy solutions to power their operations. Further, in the Middle East and North Africa (MENA) data center market, there is a growing commitment to sustainable practices. Companies such as Equinix, Moro Hub, and Khazna Data Centers are actively investing in renewable energy solutions, including the installation of solar panels, to harness the benefits of solar energy. Notably, Moro Hub's data center, situated within the DEWA solar farm, has become one of the world's largest solar-powered data centers, showcasing the region's dedication to sustainable practices.
Rising Adoption of Artificial Intelligence
The Middle East and North Africa data center market is currently experiencing significant growth due to the increased adoption of advanced technologies like AI and ML. These technologies are becoming more prevalent in data centers, where they are being used to manage the power grid and electricity distribution more effectively. AI plays a crucial role in helping operators determine the optimal times to generate, store, and use energy, offering the added advantage of remote power generation and distribution control.
The Middle East and North Africa data center market is poised to offer significant revenue opportunities for construction contractors due to the burgeoning data center activities. Key players in this sector include AECOM, Laing O’Rourke, Dar Group, Mercury Engineering, Deerns, Anel Group, Linesight, M+W, McLaren Construction, Atkins, B2 Architects, ENMAR Engineering, Arup, DC Pro Engineering, Edarat, Sterling and Wilson, United Egypt, Westwood Management, HHM Building Contracting, Red Engineering, and Turner & Townsend. For example, Laing O’Rourke has been selected by Khazna Data Centers to oversee the construction of a data center and office space in the Dubai Design District.
Additionally, colocation service providers like Khazna Data Centers, Gulf Data Hub, MEEZA, Moro Hub, Africa Data Centres, Raxio Data Centres, IXAfrica, Rack Centre, and Wingu play a pivotal role in the Middle East and North Africa data center market. The Middle East is on the brink of substantial growth, with Khazna Data Centers and Gulf Data Hub spearheading the development of over 15 facilities in the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain, slated to become operational in the forecast period. Furthermore, the escalating demand from various industries has prompted operators to engage in numerous M&A agreements and joint ventures (JVs) to expand their service offerings, attract clientele, and secure a larger Middle East and North Africa data center market share.
Frequently Asked Questions
How big is the Middle East and North Africa data center market?
The Middle East and North Africa data center market size was valued at USD 5.04 billion in 2022 and is expected to reach USD 8.38 billion by 2028.
What is the growth rate of the Middle East and North Africa data center market?
The Middle East and North Africa data center market share is growing at a CAGR of 8.82% from 2022-2028.
Regarding area, the Middle East and North Africa data center market is expected to reach 2.77 million square feet by 2028.
What are the key trends in the Middle East and North Africa data center market?
5G driving edge data center investments, procurement of renewable energy, deployment of submarine cables and inland connectivity, rising procurement of artificial intelligence, and digital transformation boosting data center investments are some key trends in the Middle East and North Africa data center market.
In the Middle East and North Africa data center market, power capacity is expected to reach 542.5 MW by 2028.
The Middle East and North Africa data center market is expected to grow at a CAGR of 8.84% from 2022 to 2028.
The following factors are likely to contribute to the growth of the Middle East and North Africa data center market during the forecast period:
Base Year: 2022
Forecast Year: 2023–2028
The study considers the present scenario of the Middle East and North Africa data center market and its market dynamics for 2023−2028. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading and prominent companies operating in the market.
Prominent Data Center IT Infrastructure Providers
Prominent Support Infrastructure Providers
Prominent Data Center Construction Constructors
Prominent Data Center Investors
New Entrants
The report includes the investment in the following areas:
Segmentation by Infrastructure
Segmentation by IT 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
Segmentation by Geography
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