Middle East Data Center Market

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Middle East Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030

Industry: ICT & Media | Publish Date: 15-Jul-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : N/A

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Middle East Data Center Market Overview

The Middle East Data Center Market size was valued at USD 2.75 billion in 2023, and is predicted to reach USD 6.29 billion by 2030, at a CAGR of 12.6% from 2024 to 2030. The data center market, also known as the network infrastructure market, covers the entire lifecycle of specialized infrastructure for hosting computing systems, from initial planning and construction to ongoing operation and maintenance. This market includes a variety of components such as servers, storage systems, and networking equipment, that together provide services like cloud computing and connectivity solutions. 

Currently, the industry is experiencing widespread adoption of cloud services and the rise of edge computing aimed at reducing latency. Key trends shaping the market include a strong emphasis on sustainability, increased cybersecurity concerns, the integration of hybrid and multi-cloud approaches, and the growing influence of 5G networks. These trends highlight the industry's proactive efforts to meet the rising demand for scalable, efficient, and secure data processing and storage solutions amid the ongoing digital transformation. According to projections by the United States International Trade Commission, the data processing and storage market is expected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.

Investment in Digital Infrastructure Boosts the Growth of the Middle East Data Center Market

The Middle East region, encompassing countries such as UAE, Saudi Arabia, and Qatar, is witnessing significant developments in data center infrastructure. The UAE's Ministry of Investment and Egypt's Ministry of Communications recently signed a Memorandum of Understanding (MoU) to invest in Egypt's digital infrastructure, with plans to potentially develop 1GW of network infrastructure center capacity. 

This collaboration, aligned with Egypt's "Digital Egypt" Vision 2030 plan, aims to establish 100MW initially, with discussions on incentives underway. It signifies the growing infrastructure center market in Egypt, projected to reach USD 1.1 billion by 2030, and underscores the strategic importance of partnerships in advancing digital infrastructure and technological capabilities within the region.

 

Implementation of Government Initiatives Towards Expansion of Data Centers Propels the Market Growth

Saudi Arabia's Ministry of Communications unveiled an ambitious USD 18 billion plan to establish a network of major data centers, with the goal of positioning the country as the primary hub in the region. Aligned with Saudi Vision 2030, this initiative seeks to attract global investors, with discussions underway with industry heavyweights such as Amazon and Google. 

The plan aims to foster digital investments and the localization of services within the Kingdom, driving economic diversification and technological advancement. This initiative highlights Saudi Arabia's commitment to becoming a prominent player in the digital landscape and underscores the increasing significance of infrastructure centers in enabling digital transformation and innovation across the Middle East region.

High Initial Investment Hinders the Middle East Data Center Market Growth

The data center market faces significant hurdles, primarily due to the substantial initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure demands considerable upfront financial commitments, creating barriers for smaller enterprises and start-ups attempting to enter the market. Additionally, ongoing compliance with environmental standards necessitates continuous investment in energy-efficient technologies hinders the overall Middle East data center market growth. 

 

Integration of Edge Computing Presents Lucrative Opportunity for the Middle East Data Center Market Expansion 

The integration of edge computing into operations presents promising prospects for the Middle East data center market expansion. By minimizing latency and enabling real-time processing, edge computing supports applications such as the Internet of Things (IoT) and Augmented Reality (AR), reducing the load on centralized cloud data center market while providing scalability and flexibility.

This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, creating diverse opportunities for network infrastructure providers. Recent investments in start-ups such as Armada indicate the growing interest in edge computing solutions, signaling a concerted effort to address connectivity challenges and bridge the digital divide.

 

Competitive Landscape

The key market players operating in the Middle East data center industry include Amazon.com Inc., IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, NTT Communications Corporation, Equinix Inc., Digital Reality Trust Inc. and others.

Middle East Data Center Market Key Segments

By Type    

  • Colocation

  • Hyperscale

  • Edge 

  • Others

By Deployment Model

  • On-Premises

  • Cloud

  • Hybrid

By Enterprise Size 

  • Large Enterprise

  • Small and Medium Size Enterprise

By End User

  • BFSI

  • IT and Telecom

  • Government

  • Energy and Utilities 

  • Other End Users

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2023

USD 2.75 Billion

Revenue Forecast in 2030

USD 6.29 Billion

Growth Rate

CAGR of 12.6% from 2024 to 2030

Analysis Period

2023–2030

Base Year Considered

2023

Forecast Period

2024–2030

Market Size Estimation

Billion (USD)

Growth Factors

  • Investment in digital infrastructure boosts the market growth.

  • Implementation of government initiatives drives the growth of industry.

Companies Profiled

10

Market Share

Available for 10 companies

Customization Scope

Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

  • Amazon.com Inc.

  • IBM Corporation

  • Microsoft Corporation

  • Cisco System Inc.

  • Oracle Corporation

  • SAP SE

  • Hewlett Packard Enterprise Company

  • NTT Communications Corporation

  • Equinix Inc.

  • Digital Reality Trust Inc.

Bar chart Pie chart Pie chart

Frequently Asked Questions

The key market players operating in the market are Amazon.com Inc., IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, NTT Communications Corporation, Equinix Inc., Digital Reality Trust Inc. and others.

According to the Next Move Strategy Consulting, the size of the Middle East data center market is estimated at USD 2.75 billion in 2023.

High initial investment hinders the data center market growth.

Introduction of edge computing in data center is expected to create future opportunities in the data center market.

According to the Next Move Strategy Consulting, the size of the Middle East data center market is estimated to be at USD 6.29 billion in 2030.

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