The Middle East and North Africa (MENA) data center market is expected to grow with a robust CAGR of more than 20% during the period 2022-2028. The regional data center market grew at an estimated CAGR of more than 80% during 2019-2021. In addition, MENA data center market is estimated at US$ 2.7 billion in 2022.
The growth is fuelled by the COVID-19 outbreak which has strongly surged the demand for cloud computing services during 2020 by the majority of the industry verticals. Moreover, cloud services are cost-effective to organizations which further fuels their adoption rate. A continuous surge in the demand for data storage and processing in the country is expected to accelerate the growth of the market.
Accelerating demand for data storage and the adoption of cloud computing increasingly driving the data center market
The Middle East and North Africa market is mainly driven by increasing investment by private and public entities coupled with the rising need for data storage capacity. The growing demand for cloud computing, big data, and IoT technologies will be a major driver for Infrastructure-as-a-Service (IaaS) over the forecast period. Private/SMEs/MNCs will continue to dominate the MENA market over the forecast period mainly due to the increased need for data storage solutions.
Increased demand for IT services and communication infrastructure development on the back of 5G deployment are fueling sectoral growth. In the region, there has been a rapid uptake in internet use, and digital transformation initiatives have significantly accelerated over the past couple of years. This has resulted in the widespread adoption of data centers. Moreover, the increasing adoption of cloud computing services is leading to the growth of retail and wholesale colocation services in the region.
Saudi Arabia dominates the GCC data center market, with an estimated share of 49% in 2022, driven by heavy investment in the regional IT sector
The Middle East & North Africa data center market is mainly concentrated in the GCC region with a penetration of 49.2% in 2019. Primary growth enablers in the GCC region include increased government focus on the development of data centers and increasing investment by telecom operators and service providers. In 2019, Equinix, Etisalat, Gulf Data Hub, Batelco, and Khazna were the major investors, of which Gulf Data Hub made a significant investment in the Jeddah Data Center, Saudi Arabia. The cloud market is becoming more competitive in the region, especially in the UAE. The increasing adoption of cloud computing services is leading to the growth of retail and wholesale colocation services in the region.
The Turkey data center market is estimated at US$ 484.0 million and is expected to register a significant CAGR of more than 23% during 2022-2028. Turkey has strong cultural and economic ties to both Europe and the Middle East, and a flourishing IT and telecom sector which leads to significant growth of infrastructure in the region and it directly results in the growth of in Turkey. Moreover, the colocation market in Israel is primarily driven by the significant digital acceleration in the last few years in the country.
Key Market Segmentation
Rationalstat has segmented the MENA data center market on the basis of operating model, ownership, organization, end user, and region.
- By Operating Model
- By Ownership
- By Organization
- Government/Public Entities
- By End User
- IT & Telecom
- Media and Entertainment
- Energy & Utilities
- Automotive & Transportation
- Central/Local Administrative Agencies
- Others (Education etc.)
- By Region
- Middle East (ME)
- Rest of ME
- North Africa (NA)
- Rest of North Africa
- Middle East (ME)
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Frequently Asked Questions (FAQs)
The MENA Data Center market is expected to grow at a CAGR of more than 20% from 2022-2028.
GCC dominates the MENA Data Center Market in 2022.
The market value of the MENA Data Center market is estimated at US$ 2.7 billion in 2022.
- Huge investments in IT sectors and data center areas.
- Surge in the demand for data storage and processing.
- Increased government focus on the development of data center.
Leading companies operating in the MENA Data Center market are IBM Corp, Oracle Corp., Microsoft Corp., Amazon, Orange SA, Etisalat Corp, Equinix, Turk Telekom, Alibaba Group, etc.