Middle East and Africa Data Center Market Outlook and Forecast Report 2022-2027

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DUBLIN, February 15, 2022–(BUSINESS WIRE)–The report “Middle East and Africa Data Center Market – Industry Outlook and Forecast 2022-2027” has been added to from ResearchAndMarkets.com offer.

The Middle East & Africa data center market saw investments of USD 6.55 billion in 2021 and will see investments of USD 12.19 billion by 2027, growing at a CAGR of 10.90 % over the period 2022-2027.

Countries in the Middle East and Africa are working to embrace digital transformation to attract foreign investment. Moreover, the deployment of the 5G network is fueling digital transformation, IoT, smart cities and the fourth industrial revolution.

The data center market in the Middle East and Africa has attracted significant investment in recent years, led by countries such as Israel, Oman, Qatar, Saudi Arabia, Turkey, United Arab Emirates, South Africa, Kenya, Egypt and Nigeria.

Investments in submarine cables in the Middle East and Africa region have increased significantly over the years, with government and companies continuously strengthening fiber infrastructure for better connectivity with other countries, which will further stimulate investment in data centers.

Submarine cables such as Africa-1, 2Africa, India Europe Xpress (IEX), Oman Australia Cable (OAC), PEACE cable, Equiano and METISS are expected to be operational during the forecast period.

Telecom service providers and global colocation operators are the major investors in the data center industry in the Middle East and Africa region. Major cloud service providers are expected to expand their presence in the region during the forecast period.

SEGMENTATION ANALYSIS

In the IT infrastructure segment, significant revenue is generated from servers as the growth in data generation fuels the demand for faster processing and efficient servers. This is followed by storage revenue owing to the growing adoption of flash storage among data centers and network infrastructure revenue in the Middle East and Africa data center market.

Data center cooling investment is 15-20% of the total data center construction investment, excluding IT infrastructure adoption. Cooling systems and IT infrastructure are major energy consumers in data centers.

The general construction segment involves several parties with the presence of several vendors in the data center market in the Middle East and Africa. In addition to construction, installation and commissioning services, data centers also invest in improving physical security, facility monitoring and management through data center infrastructure management. data (DCIM) in real time.

The water consumption of CRAH units plays a key role in their adoption and is likely to be considered when selecting suppliers. These units are installed in data centers in a hot/cold aisle containment design, with different airflow paths for cold air in and hot air out from the center computer room of data. Data centers are now being built with flexible designs, where additional or large capacity units can be integrated in days or weeks, depending on customer needs.

GEOGRAPHICAL ANALYSIS

In 2021, in the Middle East, the United Arab Emirates was the main contributor with investments in more than 10 data center investments. In Africa, South Africa saw major investments of about six data center installations, followed by Turkey, Saudi Arabia, Israel, Kenya, Nigeria, Ethiopia, Egypt and Morocco.

In terms of 5G network deployment, UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Turkey, Israel and Qatar have witnessed 5G network deployments on commercial and trial basis.

The UAE, Saudi Arabia, Kuwait, Oman, and Israel have witnessed investments in smart city development to fuel the growth of the Middle East data center market. In Africa, several government agencies have taken initiatives to develop special economic zones and industrial parks and offer tax exemptions for the development of data centers

SUPPLIER ANALYSIS

Global cloud service providers such as AWS, Microsoft, IBM, Oracle, SAP, and Tencent, among others, are expanding their presence with new cloud regions in the Middle East and Africa region. These providers already have a strong physical presence in metropolises and are major users of high density, mission-critical servers, storage and networking infrastructure.

HPE, Dell Technologies, IBM, Huawei, Lenovo, NetApp, and Cisco Systems are some of the top IT infrastructure revenue generators in the market. Innovations in the field of IT infrastructure will result in the launch of new solutions at an affordable cost that meet the operational business needs of enterprises and have a strong presence in the market.

Flash storage arrays that match the performance requirements of businesses in the Middle East and Africa will experience higher market adoption. Flash will become a mandatory storage platform for I/O intensive workloads among organizations in the coming years.

MARKET DYNAMICS

Opportunities and market trends

  • 5G Deployments Fuel Edge Data Center Deployment

  • Smart city initiatives drive investment in data centers

  • Deployment of submarine cables and inland cables

  • Increased adoption of renewable energy sources

  • Installation of advanced IT infrastructure in data centers

Market Growth Drivers

  • Cloud Adoption Drives Data Center Investments

  • Big Data and IOT are fueling data center investments

  • Migration of on-premises infrastructure to colocation and managed services

  • Deployment of Modular Data Centers

  • Impact of Covid-19 on data center investments

Market constraints

  • Data Center Security Challenges

  • Shortage of skilled labor

  • Location Constraints on Data Center Development

VENDOR LANDSCAPE

Top IT Infrastructure Providers

Top Support Infrastructure Providers

  • 4Energy

  • ABB

  • Airedale International Air Conditioning

  • Alfa Laval

  • canovate

  • caterpillar

  • Cummins

  • Delta Electronics

  • EAE Group

  • eaton

  • EVAPCO

  • Enlogical

  • enrogens

  • HITEC power protection

  • Johnson Controls

  • Great

  • Mastering energy technologies

  • Rittal

  • Rolls Royce

  • Schneider-Electric

  • Shenzhen Envicool Technology

  • Siemens

  • STULZ

  • Vertiv Group

Main construction contractors

Top Data Center Investors

  • Amazon Web Services (AWS)

  • Data centers in Africa

  • Bynet data communications

  • EdgeConneX

  • equinix

  • Etisalat

  • Future Digital Data Systems (FDDS)

  • Group 42

  • Gulf Data Center

  • io (Digital Real Estate)

  • IXAfrica

  • Hub Moro

  • Meeza

  • Microsoft

  • MainOne(MDXi)

  • NTT Global Data Centers

  • Ooredoo

  • Paratus Namibia

  • center of the rack

  • Raxio Data Centers

  • Turkcell

  • Telecom Egypt

  • Teraco Data Environments

  • Wingu

  • Zain

New entrants

For more information about this report visit https://www.researchandmarkets.com/r/vxg0g3

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220215006004/en/

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