Middle East and Africa Data Center Market Research Report 2022-2027 - 5G Deployments Fueling Edge Data Center Deployment & Smart City Initiatives Driving Data Center Investments

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Feb 16, 2022, 09:15 ET

DUBLIN, Feb. 16, 2022 /PRNewswire/ -- The "Middle East and Africa Data Center Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The Middle East and Africa data center market witnessed investments of USD 6.55 billion in 2021 and will witness investments of USD 12.19 billion by 2027, growing at a CAGR of 10.90 % during 2022-2027.

The Middle East & African countries are working toward the adoption of digital transformation to attract foreign investments. Moreover, 5G network deployment fuels the digital transformation, IoT, smart cities, and the fourth industrial revolution.

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

Investments in submarine cables in the Middle East & African region have increased considerably over the years, with the government and enterprises continuously strengthening fiber infrastructure for better connectivity with other countries, which will further drive data center investments.

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

Telecommunication service providers and global colocation operators are the major investors in the data center industry in the Middle East& 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, major revenue is generated by servers as the growth in data generation is fueling the demand for faster processing and efficient servers. This is followed by revenue from storage due to the growing adoption of flash storage among data centers and network infrastructure revenues in the Middle East and Africa data center market.

The investment in data center cooling accounts for 15-20% of the total investment in data center construction, excluding the adoption of IT infrastructure. Cooling systems and IT infrastructure are the predominant power consumers in data centers.

The general construction segment involves multiple parties with the presence of several vendors in the Middle East & Africa data center market. Apart from the construction, installation, and commissioning services, data centers are also majorly investing in improving physical security, monitoring, and management of facilities through data center infrastructure management (DCIM) on a real-time basis.

The water consumption by CRAH units plays a vital role in their adoption and is likely to be considered during the selection of vendors. These units are installed in the data centers according to hot/cold aisle containment design, with various airflow paths for both cold air entry and hot air exit out of the data center's computer room. Data centers are now being built with flexible designs, in which additional or high-power-capacity units can be incorporated within days or weeks, depending on the customers' requirements.

GEOGRAPHICAL ANALYSIS

In 2021, in the Middle East, the UAE was the major contributor with investment in over 10 data center investments. In Africa, South Africa witnessed the major investments of around six data center facilities, followed by Turkey, Saudi Arabia, Israel, Kenya, Nigeria, Ethiopia, Egypt, and Morocco

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

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

VENDOR 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 & Africa region. These providers already have a strong physical presence in metro cities and are significant high-density adopters, mission-critical servers, storage infrastructure, and network infrastructure.

HPE, Dell Technologies, IBM, Huawei, Lenovo, NetApp, and Cisco Systems are among the major revenue generators for IT infrastructure in the market. The innovations in the IT infrastructure space will result in the launch of new solutions at an affordable cost that suits enterprises' operational business needs and has a strong presence in the market.

Flash storage arrays that match the performance requirement of Middle East & Africa enterprises will witness higher adoption in the market. Flash will become a mandatory storage platform for I/O intensive workloads among organizations in the upcoming years.

MARKET DYNAMICS

Market Opportunities & Trends

5G Deployments Fueling Edge Data Center Deployment
Smart City Initiatives Driving Data Center Investments
Deployment of Submarine Cables and Inland Cables
Increase in Adoption of Renewable Energy Sources
Installation of Advanced IT Infrastructure in Data Centers

Market Growth Enablers

Cloud Adoption Driving Data Center Investments
Big Data & IOT Fueling Data Center Investments
Migration from On-Premises Infrastructure to Colocation & Managed Services
Deployment of Modular Data Centers
Covid-19 Impact on Data Center Investments

Market Restraints

Security Challenges for Data Centers
Dearth of Skilled Workforce
Location Constraints on Data Center Development

VENDOR LANDSCAPE

Key IT Infrastructure Providers

Arista Networks
Atos
Broadcom
Cisco Systems
Dell Technologies
Fujitsu
Hitachi Vantara
Hewlett Packard Enterprise (HPE)
Huawei Technologies
IBM
Inspur
Juniper Networks
Lenovo
NetApp
Oracle

Key Support Infrastructure Providers

4Energy
ABB
Airedale International Air Conditioning
Alfa Laval
Canovate
Caterpillar
Cummins
Delta Electronics
EAE Group
Eaton
EVAPCO
Enlogic
Enrogen
HITEC Power Protection
Johnson Controls
Legrand
Master Power Technologies
Rittal
Rolls-Royce
Schneider Electric
Shenzhen Envicool Technology
Siemens
STULZ
Vertiv Group

Key Construction Contractors

Abbeydale Projects
Advanced Vision Morocco
AECOM
Aldar Properties
Anel Group
Arup
ARSMAGNA
Ashi & Bushnag
Atkins
B2 Architects
CAP DC
Chess Enterprises
Copy Cat Group
Dar Group
DC Pro Engineering
Deerns
Eastra Solutions
Edarat Group
EDS Engineers
Egypro
EGEC
ENMAR Engineering
Harinsa Qatar (HQ)
HATCO
HHM Building Contracting
Hill International
H&MV Engineering
ICS Nett
Ingenium Engineers
INT'LTEC Group
ISG
Interkel
JLB Architects
Laing O'Rourke
Linesight
M+W Group (EXYTE)
Mace
Mercury Engineering
McLaren Construction
MWK Engineering
Orascom Construction
Prota Engineering
Qatar Site and Power
RED Engineering
Royal HaskoningDHV
RW Armstrong
Shaker Group
Sterling & Wilson
Summit Technology Solutions
Tri-Star Construction
Turner & Townsend
United Egypt
Westwood Management

Key Data Center Investors

Amazon Web Services (AWS)
Africa Data Centres
Bynet Data Communications
EdgeConneX
Equinix
Etisalat
Future Digital Data Systems (FDDS)
Group 42
Gulf Data Hub
io (Digital Realty)
IXAfrica
Moro Hub
Meeza
Microsoft
MainOne(MDXi)
NTT Global Data Centers
Ooredoo
Paratus Namibia
Rack Centre
Raxio Data Centres
Turkcell
Telecom Egypt
Teraco Data Environments
Wingu
Zain

New Entrants

Infinity
Open Access Data Centres (OADC)
Vantage Data Centers

For more information about this report visit https://www.researchandmarkets.com/r/ddht08

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