Middle East & Africa Data Center Market Outlook & Investment Analysis 2021-2026 with Smart City Initiatives Fueling Data Center Deployments

DUBLIN, Oct. 4, 2021 /PRNewswire/ -- The "Middle East & Africa Data Center Market - Industry Outlook & Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.

The Middle East & Africa data center market by investment is expected to grow at a CAGR of 10.38% during the period 2021-2026.

In the Middle East & Africa, growing internet penetration, social media usage, and smart initiatives will continue to drive the market over the next few years. Africa is an emerging data center market, and it witnessed around 15 data center investments in 2020. The region is experiencing growth in internet penetration, which can be a major driver for data center investors.

The growth in the adoption of IoT and big data analytics services will result in the rapid growth of data center development in the Middle East & Africa data center market.

The market is evolving, and investments are expected to rise significantly with contributions from local and global data center operators. The Middle Eastern region witnessed investments from telecommunication service providers as well as global colocation operators. A major advantage in the Middle Eastern & Africa market is the low power cost.

In 2020, the Middle Eastern market attracted investments from Akbank, Datamount, Equinix, Etisalat, Global Data Center, Gulf Data Hub, Khazna, Meeza, Ooredoo, and Turkcell.

GEOGRAPHIC ANALYSIS

The UAE is one of the preferred data center investment locations in the Middle East, attracting investments in around four colocation data center facilities in 2020. Some telecom providers such as Etisalat and Emirates Integrated Telecommunications Company (EITC) also invested in the region.

The rapid investment in 5G technology and its deployment led to the generation of a substantial amount of data, further increasing investments in data centers across the region. Submarine cable deployments in the UAE will boost connectivity in the country.

VENDOR ANALYSIS

The Middle East & Africa market is witnessing a massive increase in data usage by consumers using services offered by companies in the e-commerce, social media, and entertainment industries. Global cloud service providers such as Amazon Web Services (AWS), Microsoft, and Huawei Technologies are setting up cloud regions in Africa.

Owing to the growing construction of hyperscale facilities, revenue opportunities for construction contractors are high as several data centers are spread over a hundred thousand square feet of area. In terms of security, multiple vendors are working in a specific region and global vendors with strong partnerships with existing developers. In terms of electrical infrastructure, the market in the Middle East & Africa witnessed increasing competition amongst the power infrastructure providers.

MARKET SEGMENTS AND SHARE

• The deployment of data centers is growing in the Middle Eastern & Africa region. The IT infrastructure vendors are continuously innovating to improve performance.
• Over the past few years, facilities operators have been adopting innovative and energy-efficient cooling infrastructure solutions to reduce power consumption by up to 50%.
• Adopting organization-specific software over the cloud platform will also increase the demand for high-computing servers in the Middle East & Africa data center market.
• In the Middle East & Africa, there is a rise in the deployment of edge data centers; also, colocation data center operators are investing in the region.

SNIPPETS

• Companies such as Amazon Web Services (AWS), Equinix, Group 42 are investing in hyperscale data centers in the Middle East & Africa.
• Data center operators are likely to invest heavily in automation, monitoring, and management solutions for real-time control over data center support infrastructure operations.
• There is a high growth investment in greenfield and modular data centers in the Middle East data center market.
• Smart city initiatives in the Middle East have increased the adoption of IoT and 5G. IoT spending is expected to reach USD 20 billion by 2023.

Market Dynamics

Market Opportunities & Trends

• 5G to Grow Edge Data Center Investments
• Growing Procurement of Renewable Energy
• Submarine Cable Deployment & Impact on Data Center Investment
• Smart City Initiatives Fuel Data Center Deployments
• Penetration of Converged & Hyperconverged Infrastructure Solutions
• Rising Adoption of All-Flash Storage Solutions

Market Growth Enablers

• Migration from On-Premises Infrastructure to Colocation & Managed Services
• COVID-19 Impact on Data Center Market
• Rising Data Center Investments
• Big Data, IoT & Cloud Drive Data Center Investment
• Modular Data Center Development

Market Restraints

• Location Constraints for Data Center Construction
• Lack of Skilled Workforce
• Budget Constraints & Meager Investment Support in Africa
• Security Breaches Hindering Data Center Investments

Prominent IT Infrastructure Vendors

• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
• International Business Machines Corp. (IBM)
• Lenovo
• NetApp

Prominent Construction Contractors

• Atkins
• Arup
• Chess Enterprises
• DC PRO
• Deerns
• Enmar Engineering
• Edarat Group
• Future-tech
• Harinsa Qatar (HQ)
• ICS Nett
• Interkel
• ISG
• Laing O'Rourke
• Linesight
• McLaren Construction Group
• NLE
• Qatar Site and Power (QSP)
• RED
• Turner & Townend

Prominent Data Center Support Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• HITEC Power Protection
• Johnson Controls
• Legrand
• Rittal
• Rolls-Royce Power Systems
• Schneider Electric
• Shenzhen Envicool Technology
• STULZ
• Vertiv Group

Prominent Data Center Investors

• 21st Century Technology
• Africa Data Centres
• Amazon Web Services (AWS)
• Akbank
• Bahrain Telecommunications Company (BATELCO)
• Etisalat Group
• Equinix
• Galaxy Backbone
• Gulf Data Hub
• Turkcell
• Telecom Italia Sparkle
• icolo.io
• Internet Technologies Angola
• inwi
• IXAfrica Data Centre
• Khazna Data Centers
• MainOne (MDXi)
• Medallion Communications
• Etihad Etisalat (Mobily)
• N+ONE Datacenters
• Orange
• PAIX Data Centres
• Rack Centre
• Raxio Group
• Raya Data Center
• Teraco Data Environments
• Vantage Data Centers
• Zain

For more information about this report visit https://www.researchandmarkets.com/r/pmx2hh

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