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Middle East & Africa Data Center Colocation Market to Reach from $2.98 Bn to $5.74 Bn by 2029 – Arizton
According to Arizton’s latest research report, the Middle East & Africa data center colocation market is growing at a CAGR of 11.55% during 2023-2029.
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Report Scope:
Market Size - Investment (2029): $5.74 Billion
Market Size – Investment (2023): $2.98 Billion
CAGR by Investment (2023-2029): 11.55%
Area (2029): 3,872 Thousand Sq. ft.
Power Capacity (2029): 718 MW
Colocation Revenue (2029): $3.33 Billion
Historic Year: 2020-2022
Base Year: 2023
Forecast Year: 2024-2029
Market Segmentation: Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography
Geographical Analysis: Middle East (UAE, Saudi Arabia, Israel, Oman, Qatar, Kuwait, Jordan, Bahrain, and Other Middle Eastern Countries) and Africa (South Africa, Kenya, Nigeria, Egypt, Ethiopia, and Other African Countries)
Investment in the MEA Data Center Colocation Market is on the rise, driven by significant capital inflows across the region. Key locations for data center development include the UAE, Saudi Arabia, Qatar, Oman, Kuwait, South Africa, Egypt, Nigeria, Morocco, and Kenya. Notably, Telecom Egypt's launch of its largest data center highlights the region's growing demand for colocation services fueled by digital transformation initiatives across various sectors.
Recent Major Investments in the MEA Data Center Market Include:
- February 2024: Khazna Data Centers unveiled a new facility, AUH6, in Masdar City, Abu Dhabi, UAE.
- February 2024: MedOne announced plans to invest around $270 million to develop two underground data centers in the country, with the first set to be operational by 2026 and the second by 2027.
- 2024: Equinix is building a new data center, SN1, in Salalah, Oman, with an investment of $14 million, expected to be operational by Q4 2024.
- February 2024: Airtel Nxtra announced plans to build a data center in Nairobi, Kenya, set to open by mid-2026.
- March 2024: Airtel Nxtra also started construction on a data center in Lagos, Nigeria, with operations expected by Q1 2026, targeting a PUE of 1.3.
Importance of Submarine Cables and Inland Connectivity for MEA Data Centers
In the MEA region, submarine cables and inland connectivity are integral to shaping the digital landscape. The development of these infrastructure elements is crucial for the functioning of data centers, as they provide the essential data transmission networks that connect the region to the global internet and facilitate seamless communication.
For data centers, access to reliable, high-speed internet connectivity is vital. Submarine cables are key in linking the MEA region to global internet hubs and data exchange points, ensuring efficient data flow. Additionally, investments in inland connectivity, such as fiber optic networks, are critical for facilitating effective communication between data centers within the region and enabling businesses to access data and services hosted across various locations.
As governments and enterprises in the MEA continue to invest in submarine cables and inland connectivity, data centers in the region will benefit from enhanced connectivity, reliability, and expanded growth opportunities. These infrastructure developments are expected to solidify the region’s position as a key hub for global data storage, processing, and exchange.
Accelerating Smart City Transformation in the MEA Region
Smart city developments are rapidly expanding across the MEA region, fueled by a commitment to enhance urban living, foster sustainability, and drive economic growth. Leading countries such as the UAE, Saudi Arabia, and Qatar are at the forefront of this movement, with groundbreaking projects that utilize cutting-edge technologies to revolutionize infrastructure, transportation, and public services. Dubai’s Smart Dubai 2021 strategy, for instance, seeks to transform the city into a global innovation hub by integrating technologies like AI, IoT, and blockchain. Additionally, Saudi Arabia's NEOM project, set to cost approximately USD 500 billion, promises to reshape the future of urban living when it becomes operational in 2025, solidifying the MEA region as a global leader in smart city innovation.
Key Players and Emerging Trends in the MEA Data Center Colocation Market
- Market Leaders: The MEA data center colocation market is dominated by key operators such as Khazna Data Centers, Digital Realty, and other notable players like center3 (stc), Vantage Data Centers, Gulf Data Hub, and Equinix. Africa Data Centres, Open Access Data Centres, Turkcell, and Mobily also contribute to the competitive landscape, establishing a diverse range of operations across the region.
- New Entrants: Emerging companies like Agility, Compass Datacenters, Cloudoon, EDGNEX Data Centres by DAMAC, Kasi Cloud, and Quantum Switch Tamasuk (QTS) are transforming the colocation investment space. These players bring fresh perspectives, drive innovation, and enhance service offerings, intensifying competition in the market.
- Market Demand & Digital Transformation: The rapid growth of digital transformation and cloud adoption across industries creates a strong demand for colocation services. Countries like the UAE, Saudi Arabia, South Africa, and Nigeria are seeing substantial investments, spurred by government initiatives and foreign investments aimed at bolstering digital infrastructure.
- Sustainability Focus: The emphasis on sustainability and energy efficiency is reshaping the market. Data center providers are increasingly adopting renewable energy sources and cutting-edge cooling technologies to minimize environmental impact, aligning with the growing global focus on sustainability.
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Key Data Center Investors
- 21st Century Technology
- Africa Data Centres
- Adgar Investments and Development
- Batelco
- Bynet Data Communications
- Digital Parks Africa
- Equinix
- EdgeConneX
- Future Digital Data Systems (FDDS)
- Gulf Data Hub
- Galaxy Backbone
- iColo (Digital Realty)
- IXAfrica
- Khazna Data Centers (G42 & Etisalat)
- Moro Hub
- MedOne
- Meeza
- Mobily
- MainOne
- Medallion Communications
- NTT Global Data Centers
- Oman Data Park
- Ooredoo
- Paratus Namibia
- Rack Centre
- Raxio Data Centres
- Saudi Telecom Company (stc)
- Serverfarm
- Turkcell
- Türk Telekom
- Telehouse
- Telecom Egypt
- Teraco (Digital Realty)
- Wingu
New Entrants
- Airtel Nigeria
- Agility
- Cloudoon
- Compass Datacenters
- Digital Realty
- Damac Data Centres
- Global Technical Realty
- Infinity
- Kasi Cloud
- Open Access Data Centres (OADC)
- Vantage Data Centers
- Quantum Switch Tamasuk
- ZeroPoint DC
Market Segmentation
Colocation Service
- Retail Colocation
- Wholesale Colocation
Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- Power Distribution Units
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Cooling Technique
- Air-based Cooling Technique
- Liquid-based Cooling Technique
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
Geography
- Middle East
- The UAE
- Saudi Arabia
- Israel
- Oman
- Qatar
- Kuwait
- Jordan
- Bahrain
- Other Middle Eastern Countries
- Africa
- South Africa
- Kenya
- Nigeria
- Egypt
- Ethiopia
- Other African Countries
The Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to gain a thorough understanding of the Middle East & Africa data center colocation market. Request for Free Sample to get a glance of the report now: https://www.arizton.com/market-reports/middle-east-and-africa-data-center-colocation-market
What Key Findings Our Research Analysis Reveals?
How big is the Middle East and Africa data center colocation market?
What is the growth rate of the Middle East and Africa data center colocation market?
What is the estimated market size in terms of area in the Middle East and Africa data center colocation market by 2028?
What are the key trends in the Middle East and Africa data center colocation market?
How many MW of power capacity is expected to reach the Middle East and Africa data center colocation market by 2028?
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