Dublin, Feb. 15, 2024 (GLOBE NEWSWIRE) -- The "Middle East Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
Rapid expansion in digital infrastructure and smart city initiatives across the Middle East are propelling the data center market to new heights. This comprehensive study delves into the burgeoning sector, providing a detailed forecast for the period of 2023 to 2028.
Key Market Insights Reveal Surge in IT Load Capacity and Installation of Advanced Data Centers
The analysis highlights a projected growth trajectory for the Middle East data center market with a compound annual growth rate (CAGR) of 14.74%. It's anticipated that the IT load capacity will reach 2,059.5 MW by 2029, showcasing the region's rapid technological advancements and increased data needs.
Enhanced Data Center Infrastructure to Accommodate Soaring Data Requirements
Raised Floor Space and Installed Racks to Witness Substantial Growth
- The total raised floor space is expected to escalate to a staggering 9.7 million square feet by the year 2029.
- Installed racks across the region are predicted to mount up to 496,769 units, with Saudi Arabia leading in capacity.
The Middle East boasts 128 colocation facilities, with countries like Saudi Arabia dominating the market share. Innovations in fiber connectivity and an increased emphasis on reliable power supply are driving the demand for modern data center facilities.
Market Dynamics: Leading Players and Tier Segmentation Analysis
Etihad Etisalat Company (Mobily) emerges as a significant market player, possessing the highest market share and operating at an IT load capacity of 168.3 MW. Continued expansion is forecasted within the sector, reinforcing Mobily’s leading position.
Tier Segmentation Showcases Predominance of Tier 3 Data Centers
Tier 3 data centers, known for their robust redundancy and uptime of 99.982%, are the most prevalent in the region. Their demand is expected to surge alongside the adoption of edge and cloud technologies.
- The tier 3 segment is anticipated to grow from an IT load capacity of 621.78 MW in 2023 to 1,214.86 MW in 2029, exhibiting a steady CAGR of 11.81%.
- Meanwhile, the tier 4 segment, which offers complete fault tolerance, is projected to expand at the fastest CAGR of 26.51%.
Driving the growth of these advanced tier data centers are the burgeoning BFSI sector and the impending roll-out of 5G applications, underlining the data-centric requirements of modern businesses.
Saudi Arabia at the Forefront of Data Center Investments
Saudi Arabia is notably commanding the data center market in the Middle East, with significant investments aimed at reinforcing the nation's data capabilities. The region’s focus on data center investments stems from the surge in domestic data, alongside the advent of next-generation 5G networks.
UAE Strengthens its Position as a Prime Data Center Location
The United Arab Emirates consolidates its stance as a key player within the data center market due to its advanced fiber broadband network and ease of construction permit acquisition. The growing traction of smart city projects further entices data center investments in the country.
Competitive Landscape Indicates a Moderately Consolidated Market
The Middle East Data Center Market demonstrates a moderate level of consolidation, with the top five companies holding a combined market share of 55.91%. The key players shaping this landscape include Electronia, Etihad Etisalat Company (Mobily), Etisalat, Khazna Data Center, and Med 1 I.C.-1 (1999) Ltd. This in-depth market investigation brings to light the dynamic growth and evolving trends within the Middle East data center sector, positioning it as a critical resource for stakeholders and investors aiming to penetrate this lucrative market.
A selection of companies mentioned in this report includes:
- Bezeq International General Partner Ltd.
- Bynet Data Communications Ltd.
- EdgeConneX, Inc.
- Electronia
- Etihad Etisalat Company (Mobily)
- Etisalat
- Gulf Data Hub
- HostGee Cloud Hosting Inc.
- Injazat
- Khazna Data Center
- Med 1 I.C.-1 (1999) Ltd.
- MEEZA
For more information about this report visit https://www.researchandmarkets.com/r/2um2d3
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Attachments
- Middle East Data Center Market Middle East Data Center Market C A G R By T
- Middle East Data Center Market Middle East Data Center Market C A G R By C
