MEA Cloud Infrastructure Service Market Projected to Hit USD 55.6 Billion at a 7.6% CAGR by 2035

Industry Landscape and Current Trends

MEA region has witnessed a significant surge in cloud adoption over the past decade, fueled by the rising demand for remote collaboration, data storage, and application hosting. Governments and enterprises are increasingly recognizing the role of cloud in enabling smart cities, e-governance, and digital banking services. The adoption of hybrid and multi-cloud strategies is also gaining momentum, as businesses look to balance flexibility, compliance, and performance. 

MEA Cloud Infrastructure Service Market size is projected to grow USD 55.6 Billion by 2035, exhibiting a CAGR of 7.6 % during the forecast period 2025 – 2035 Moreover, investment in cloud data centers by tech giants has strengthened local capacity, reducing latency and increasing trust among enterprises in the region.

Segmentation of Service Categories

Cloud infrastructure services in MEA are segmented into Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). IaaS dominates the segment as organizations leverage scalable infrastructure to support dynamic workloads. PaaS is seeing growth in developer communities for application testing and deployment, while SaaS adoption has surged in sectors like education, retail, and BFSI. Deployment models range from public to private and hybrid clouds, with hybrid approaches gaining popularity in regulated industries that require a balance of control and scalability.

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Key Participants in the Market

• Microsoft Corporation

• Amazon Web Services (AWS)

• Google Cloud Platform

• Oracle Corporation

• IBM Corporation

• Huawei Technologies Co. Ltd.

• Alibaba Cloud

• Dimension Data (NTT Ltd.)

• SAP SE

• Etisalat Digital

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Notable Developments and Announcements

MEA has seen substantial investments in cloud infrastructure. Microsoft launched regional data centers in the United Arab Emirates and South Africa, while AWS opened availability zones in Bahrain and South Africa. Huawei and Alibaba Cloud are expanding their presence to tap into the rising demand across the Middle East. Additionally, partnerships between telecom providers and cloud companies are driving the introduction of localized solutions to meet regulatory and business needs. Startups in the region are also benefiting from cloud-based innovation hubs and accelerators, further fostering entrepreneurship.

Drivers of Market Growth

Several factors are fueling market expansion in MEA. Rising digitalization initiatives across governments, such as Saudi Arabia’s Vision 2030 and the UAE’s Smart Government initiatives, are encouraging organizations to adopt cloud-based solutions. The growing e-commerce sector, coupled with fintech and digital banking services, is also accelerating demand for scalable infrastructure. Moreover, the COVID-19 pandemic highlighted the necessity of cloud for business continuity, accelerating adoption across industries. Cost efficiency, scalability, and enhanced security are becoming key motivators for enterprises transitioning to the cloud.

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Regional Dynamics and Adoption Patterns

Middle East, particularly the Gulf Cooperation Council (GCC) countries, is leading in cloud adoption due to favorable government policies, strong digital transformation agendas, and high levels of IT spending. Saudi Arabia and the UAE are emerging as cloud leaders in the region, with multiple hyperscale data centers being established. Africa, while still in the early stages of cloud adoption, is showing promising growth, particularly in countries like South Africa, Kenya, and Nigeria. The need for digital inclusion, combined with rising mobile penetration, is creating fertile ground for cloud infrastructure services in Africa.

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