Industry: ICT & Media | Publish Date: 24-Apr-2025 | No of Pages: 190 | No. of Tables: 144 | No. of Figures: 89 | Format: PDF | Report Code : IC2436
Trump Tariffs Are Reshaping Global Business
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.
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.
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.
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.
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.
The key market players operating in the Middle East data center industry include Amazon Web Services (AWS), IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, Equinix Inc., Digital Reality Trust Inc., Cloudscene, Zenlayer, Inc., G42, Vantage Data Centers,Iron Mountain, Inc., NVIDIA Corporation and others.
Hardware
UPS
Generators
Transfer Switches
Cooling Systems
Computer Room Air Conditioning (CRAC)
Racks
Others
Software
Services
Colocation
Hyperscale
Edge
Others
On-Premises
Cloud
Hybrid
Tier 1
Tier 2
Tier 3
Tier 4
Low Power (Less than 20MW)
Medium Power (20-100MW)
High Power (100MW and More)
By Cooling Techniques
Air Cooling
Liquid Cooling
Dry Cooling
Immersion Cooling
Others
Large Enterprise
Small and Medium Size Enterprise
BFSI
IT and Telecom
Government
Energy and Utilities
Other End Users
Saudi Arabia
United Arab Emirates (UAE)
Israel
Qatar
Kuwait
Oman
Other Countries
Amazon Web Services (AWS)
IBM Corporation
Microsoft Corporation
Cisco System Inc.
Oracle Corporation
SAP SE
Hewlett Packard Enterprise Company
Equinix Inc.
Digital Reality Trust Inc.
Cloudscene
Zenlayer, Inc.
G42
Vantage Data Centers
Iron Mountain, Inc.
NVIDIA Corporation
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