Arizton publishes the latest research report on the Middle East & Africa data center colocation market. The Market will grow at a CAGR of 8.11% during 2022-2028. The analysis encompasses the current state of the Middle East and Africa data center colocation market for the period 2023-2028, considering its market dynamics. It provides a comprehensive overview of various factors driving growth, as well as obstacles and emerging trends in the market. The report delves into both the factors influencing demand and those affecting supply within the market. Furthermore, it offers in-depth assessments and scrutiny of key companies that are at the forefront of operations in this market.
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The Middle East & Africa colocation market is poised for continuous expansion, driven by government initiatives focused on digitalization, the proliferation of robust connectivity infrastructure, and other factors. The government’s incentive programs, including tax exemptions for data centers situated in Free Trade Zones (FTZs) and industrial parks, contribute to this growth. Enterprises are anticipated to increasingly adopt colocation facilities to support their digitalization efforts and access secure, low-latency services with enhanced processing capabilities. While retail colocation pricing is expected to remain stable, wholesale colocation pricing is likely to decrease due to the construction of energy-efficient hyperscale facilities. Notably, major tech players like Microsoft and Google have collaborated with regional operators to establish data centers in the region, further bolstering the data center landscape. Quantum Switch is also set to launch two data centers by 2023, adding to the market’s growth prospects.
The data center colocation market in the Middle East is led by Israel, Saudi Arabia, the UAE, Bahrain, Oman, Kuwait, and Turkey. The smart cities in the Middle East include Abu Dhabi and Dubai, which witness data center construction investments due to the increased demand for data storage and processing. Seven submarine cables will come online during the forecast period, expected to drive data center demand.
The Middle East & Africa data center colocation market by electrical infrastructure to cross $ 1 billion by 2028
UPS systems attract the highest investment in terms of power infrastructure through the adoption of valve-regulated lead-acid (VRLA) battery-powered systems. The adoption of UPS systems is a critical task for data center operators and designers as it accounts for around 30% of failures identified in facilities. Vendors introduced lithium-ion UPS solutions, nickel-zinc batteries, and Prussian blue sodium-ion batteries to overcome the challenges of VRLA batteries. The market will witness the adoption of UPS systems with lithium-ion batteries during the forecast period. Most data centers operating in the Middle East & Africa adopt N+N redundant infrastructure, while some data centers design facilities with space to install up to 2N redundant UPS systems to cope with diverse feed designs of the facility and frequent power outages. In terms of capacity, the adoption of 500–1,250 kVA UPS systems contributes to higher investments for vendors than other systems.
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Key Market Participants’ Initiatives
Market Segmentation
Key Vendors
Key Data Center Investors
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