PUBLISHER: The Insight Partners | PRODUCT CODE: 1597091
PUBLISHER: The Insight Partners | PRODUCT CODE: 1597091
The Middle East & Africa data center construction market was valued at US$ 13,527.12 million in 2022 and is expected to reach US$ 22,873.56 million by 2030; it is estimated to register at a CAGR of 6.8% from 2022 to 2030.
Rise in Launch of New Edge Data Centers Bolsters Middle East & Africa Data Center Construction Market
The rise in the launch of new edge data centers is a significant driver of the data center market, as it reflects the evolving needs of industries and consumers for faster and more efficient data processing and storage capabilities closer to the point of use. Edge data centers are strategically positioned closer to end-users, enabling faster data transmission and reduced latency, which is crucial for applications such as IoT, autonomous vehicles, augmented reality, and real-time analytics, where even milliseconds of delay can impact performance and user experience. Also, the rollout of 5G networks is driving the need for edge computing infrastructure to support the increased data traffic and low-latency requirements of next-generation applications. Edge data centers play a vital role in processing and storing data at the network edge, optimizing the efficiency of 5G networks. Various industries are leveraging edge computing for a wide range of use cases. For example, in the healthcare sector, edge data centers facilitate remote patient monitoring, predictive maintenance of medical equipment, and real-time analysis of patient data. In retail, edge computing supports personalized marketing, inventory management, and in-store analytics. Further, various companies are launching new edge data centers. The rise in the launch of new edge data centers is the data center market.
Middle East & Africa Data Center Construction Market Overview
The market for data center construction in the Middle East & Africa (MEA) is growing with the rising establishment of numerous companies and the increased penetration of mobile users in the region. The market has recently evolved, and several colocation service providers are considering offering data center services in the region. Green building regulations and environmental goals of energy sustainability are identified as one of the major growth trends regarding data center construction.
The presence of harsh climatic conditions in the MEA is making modular data centers a viable option for companies considering advanced storage systems. Modular data centers are constructed to operate efficiently in harsh climatic conditions, which, in turn, is increasing the adoption rate for these data centers in the Middle East. The energy sector is one of the prominent industrial verticals that has adopted modular data centers due to their remote operational locations and harsh environmental operating conditions. For instance, in November 2023, the Ministry of Communications and Information Technology (MCIT) called for a US$ 18 billion investment in hyperscale data centers and renewable energy by 2030 to boost total capacity to more than 1.3GW and transform Saudi Arabia into the main data center hub across the region. Also, the government is focusing on increasing modular data centers in the region owing to the high efficiency and reduced power consumption of the data centers. Therefore, all these factors support the growth of the data center construction market in the MEA.
Middle East & Africa Data Center Construction Market Revenue and Forecast to 2030 (US$ Million)
Middle East & Africa Data Center Construction Market Segmentation
The Middle East & Africa data center construction market is segmented based on types of construction, tier standards, industry verticals, and country.
Based on types of construction, the Middle East & Africa data center construction market is segmented into general construction, electrical design, and mechanical design. The electrical design segment held the largest share in 2022.
In terms of tier standards, the Middle East & Africa data center construction market is segmented into tier 1 & tier 2, tier 3, and tier 4. The tier 3 segment held the largest share in 2022.
By industry verticals, the Middle East & Africa data center construction market is segmented into IT & telecommunication, BFSI, government, education, manufacturing, retail, transportation, media & entertainment, and others. The IT & telecommunication segment held the largest share in 2022.
Based on country, the Middle East & Africa data center construction market is categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The Rest of Middle East & Africa dominated the Middle East & Africa data center construction market in 2022.
Rittal GmbH & co KG, Schneider Electric SE, AECOM, Turner Construction Co, and Eaton Corp Plc are some of the leading companies operating in the Middle East & Africa data center construction market.