Middle East and North Africa Data Center Market to Reach Investment of $8.38 Billion by 2028, More than $3 Billion Opportunities in the Next 6 Years – Arizton
Arizton publishes the latest research report, Middle East and North Africa data center market – industry outlook & forecast 2023-2028. The market is growing at a CAGR of 8.82% during 2022-2028.
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The Middle Eastern and North African region witnessed data center investments from telecommunication service providers and global colocation operators. The market also attracted investments from cloud service providers, such as Alibaba, AWS, Oracle, and Microsoft.
MENA offers many valuable resources like oil, workers, and people with business skills. It has many countries but different in size, with varying policies of government and financial conditions. Despite all these, each country demands investment in data centers as the digitalization and advancement in IT/Telecom/Financial sectors are causing huge data generation. For instance, in May 2023, Khazna Data Centers and Benya Group signed an MoU to establish Egypt’s first hyper-scale data center at Maadi Technology Park, with a total investment of USD 250 million. This marked Khazna’s expansion into Egypt. The data center will support Egypt’s digital infrastructure needs and further Khazna’s international growth strategy.
Segmentation Insights
In data center development, there is a widespread focus on achieving a Power Usage Effectiveness (PUE) rating of less than 1.5 for most facilities. However, in countries like Turkey, where partial free cooling is adopted during peak winter months, the aim is to achieve an even more efficient PUE of less than 1.3.
The Middle East and North Africa data center market is making substantial investments in the power infrastructure, ensuring a minimum of N+1 redundancy. In 2022, Uninterruptible Power Supply (UPS) systems held a significant market share, accounting for over 30% of the total electrical infrastructure in data centers.
Given the high-temperature climate in some countries within the Middle East and North Africa region, there is a notable emphasis on investing in cooling infrastructure. In 2022, more than 65% of the total mechanical infrastructure investment was directed toward cooling systems by service providers.
The Middle East and North Africa data center market has witnessed a notable trend in deploying data centers with Tier III and IV certifications during the design and construction phases. Many private and public entities, including those in the banking, financial services, and insurance (BFSI) sector, education, and government, have sought and received Uptime Institute’s Tier III/IV certification either during the design phase or after the facility’s construction.
Vendors
Prominent Data Center IT Infrastructure Providers
Arista Networks
Atos
Broadcom
Cisco Systems
Dell Technologies
Hewlett Packard Enterprise (HPE)
Huawei Technologies
IBM
Lenovo
NetApp
Prominent Support Infrastructure Providers
4Energy
ABB
Airedale
Canovate
Caterpillar
Cummins
Delta Electronics
EAE Group
Eaton
Envicool
HITEC Power Protection
Johnson Controls
Legrand
Rittal
Rolls-Royce
Schneider Electric
Siemens
STULZ
Vertiv
Prominent Data Center Construction Constructors
AECOM
AlDar Properties
Anel Group
Arup
Ashi & Bushnag
Atkins
Advanced Vision Morocco
ARSMAGNA
Dar Group
DC Pro Engineering
Deerns
Edarat
EGEC
ENMAR ENGINEERING
Harinsa Qatar
HATCO
HHM Building Contracting
Hill International
ICS Nett
INT’LTEC
ISG
LAING O’ROURKE
Linesight
M+W Group (Exyte)
Mace
Mercury Engineering
McLaren Construction Group
MIS
NDA Group
Orascom Construction
Prota Engineering
Qatar Site & Power
RED Engineering
RW Armstrong
Shaker Group
Sterling and Wilson
Summit Technology Solutions
Sudlows
Telal Engineering & Contracting
Turner & Townsend
United Egypt
Prominent Data Center Investors
Africa Data Centres
Adgar Investments and Development
Amazon Web Services
Batelco
Bynet Data Communications
Equinix
EdgeConneX
Future Digital Data Systems
Gulf Data Hub
Google
Khazna Data Centers
Moro Hub
MedOne
MEEZA
Mobily
Microsoft
Oman Data Park
Ooredoo
stc
Serverfarm
Turkcell
Türk Telekom
Telecom Egypt
Tencent
New Entrants
Compass Datacenters
Digital Realty
EDGNEX
Global Technical Realty
Infinity
Quantum Switch
ZeroPoint DC (NEOM)
Market Segmentation
Infrastructure: IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, and General Construction
IT Infrastructure: Server Infrastructure, Storage Infrastructure, and Network Infrastructure
Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgear, PDUs, and Other Electrical Infrastructure
Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure
Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers, & Dry Coolers, and Other Cooling Units
Cooling Technique: Air-based Cooling and Liquid-based Cooling
General Construction: Core & Shell Development, Installation & Commissioning Services, Building & Engineering Design, Physical Security, and DCIM/BMS Solutions
Tier Standard: Tier I & II, Tier III, and Tier IV
Geography: 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)
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