The “Middle East & Africa Data Center Construction Market – Industry Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s offering.

The Middle East and Africa data center construction market is expected to reach a value of US$4.26 billion by 2028 from US$2.6 billion in 2022, growing at a CAGR of 8.54 per cent from 2022-2028

The region’s major global cloud service providers include Amazon Web Services, Tencent Cloud, Microsoft, Google Cloud, Alibaba Cloud, Oracle, and Huawei Technologies. For instance, Microsoft announced its intention to open a cloud region in Saudi Arabia.

The Middle East and Africa data center construction market grows continuously in terms of connectivity by deploying new submarine cables such as Africa-1, 2Africa, India Europe Xpress (IEX), Raman, Saudi Vision, Blue, Equiano, Medusa Submarine Cable System, and SeaMeWe – 6, which are expected to be ready for services during the forecast period.

The introduction of the 5G network in the Middle East & Africa is likely to generate a substantial amount of data, which will further lead to increasing investments in data centers. High internet connectivity, bandwidth, and less processing time is the feature of 5G technology.

The countries like the UAE, Saudi Arabia, South Africa, Oman, Kuwait, Bahrain, Kenya, Nigeria, and Qatar commercially deployed 5G network services. Turkey, Israel, Ethiopia, Algeria, Ghana, Jordan, Lebanon, and Iran are other countries in 5G planning and are yet to deploy commercial services during the forecast period.

Rise in the Procurement of Renewable Energy Sources

The Middle East and Africa have an abundance of availability of solar energy, where most of the countries in the region are undertaking renewable energy strategies & visions to develop renewable energy projects and meet the region’s carbon-neutral goals set by respective governments.

In December 2022, Saudi Arabia announced the development of 10 renewable energy projects with a power capacity of 7 GW, which is part of the Kingdom’s 2030 Vision.

In June 2022, Vantage Data Centers signed 20 years Power Purchase Agreement (PPA) with SolarAfrica in which the company will procure 87 MWp of solar energy that will be used to power its new facility.

In the UAE, the Energy Strategy 2050 aims to increase the share of renewable energy from 25 per cent to 50 per cent in the total energy mix by 2050.

Saudi Arabia has launched The National Renewable Energy Programme (NREP) under Vision 2030, where 13 projects will generate over 4.8 GW of renewable energy. In addition, Bahrain plans to generate around 280 MW of electricity from renewable sources by 2025, increasing to around 700 MW by 2030 to attain national renewable energy targets.

In July 2022, the Nigerian government made a statement regarding its commitment to the sustainability goal for 2030. The government is planning to generate 30 GW of electricity from renewable sources by generating renewable energy as 30 per cent of its total production.

Increasing Cloud Investments

The increase in digitalization and the shift of workloads to cloud platforms from on-premises facilities to make their operations more efficient and scalable witnessed the increase in investments by cloud service providers in the Middle East and Africa over the last few years.

Amazon Web Services aims to develop the infrastructure region in Tel Aviv, Israel, which will likely be operational in 2023.

In September 2022, Google Cloud announced its plan to open a new cloud region in Cape Town, South Africa. The cloud region is expected to be operational in the next 2-3 years.

In 2022, Google Cloud launched its first local cloud region in Israel. Further, Amazon outpost cloud services were deployed for the first time in Oman in the Oman Data Park, and Microsoft Azure established its first global data center region in Qatar.

Geographical Analysis

UAE dominates the regional market in terms of data center developments. In addition, Saudi Arabia, South Africa, Israel, Kenya, and Oman are among the major contributors to high data center development activities in the Middle East and Africa data center construction market. Qatar, Nigeria, Bahrain, Egypt, Ethiopia, and Kuwait are emerging markets that witness significant growth due to digitalization and growth in connectivity.

In the Middle East & Africa, the presence of smart cities in the region also drives data center investments. The UAE, Saudi Arabia, South Africa, Kenya, Kuwait, Morocco, Nigeria, Egypt, Ethiopia, and Ghana are some of the major countries in the region which triggered the smart city investments.

For instance, the NEOM project in Saudi Arabia is under development as a part of Crown Prince Mohammed bin Salman’s Vision 2030, which will also comprise the data center development under a joint venture firm ZeroPoint DC.

Key Market Participants’ Initiatives

The surge in data center activities across the region will be a major source of revenue for construction contractors.

Some prominent local and global construction contractors in the Middle East and Africa data center construction market include AECOM, Laing O’Rourke, Dar Group, Mercury Engineering, Deerns, Anel Group, Linesight, M+W, McLaren Construction, Atkins, B2 Architects, ENMAR Engineering, Arup, DC Pro Engineering, Edarat, Sterling & Wilson, United Egypt, Westwood Management, HHM Building Contracting, Red Engineering, and Turner & Townsend.

For instance, Laing O’Rourke is selected by Khazna Data Centres to design and build a facility and office space in Dubai Design District.

Segmentation Insights

Most facilities are being developed to operate at a PUE of less than 1.5. In contrast, few facilities in countries like Turkey that adopt partial free cooling during peak winters aim to operate at a PUE of less than 1.3.

Data centers are investing in power infrastructure with a minimum of N+1 redundancy. In 2022, UPS systems accounted for a market share of more than 30% of the total electrical infrastructure in data centers.

The Middle East and Africa data center construction market is investing in cooling infrastructure due to the high-temperature climate in some countries. In 2022, cooling systems service providers invested a share of more than 65 per cent of the total mechanical infrastructure.

Key Questions Answered:

• How big is the Middle East and Africa data center construction market?
• What is the growth rate of the Middle East and Africa data center construction market?
• What is the estimated market size in terms of area in the Middle East and Africa data center construction market by 2028?
• Who are the new entrants in the Middle East and Africa data center construction market?
• How many MW of power capacity is expected to reach the Middle East and Africa data center construction market by 2028?

Key Attributes:

Report Attribute          Details

No. of Pages    472

Forecast Period           2022 – 2028

Estimated Market Value (USD) in 2022         $2608.7 Million

Forecasted Market Value (USD) by 2028       $4266.5 Million

Compound Annual Growth Rate         8.5%

Regions Covered         Africa, Middle East

Market Opportunities & Trends

Rising Adoption of Renewable Energy Sources

Increasing 5G Deployments Fueling Edge Data Center Investments

Deployment of Submarine Cables and Inland Connectivity

Smart City Initiatives Driving Data Center Investments

Increase in Adoption of Artificial Intelligence

Market Growth Enablers

Cloud Adoption Driving Data Center Investments

IoT & Big Data Fuelling Data Center Investments

On-Premises Infrastructure Migrating to Colocation & Managed Services

Deployment of Modular Data Centers

Market Restraints

Security Challenges in Data Centers

Dearth of Skilled Workforce

Location Constraints on the Development of Data Centers

Major Vendors

Prominent Support Infrastructure Providers

Energy

ABB

Airedale

Alfa Laval

Canovate

Caterpillar

Cummins

Delta Electronics

EAE Group

EATON

Envicool

EVAPCO

Enlogic

HITEC Power Protection

Johnson Controls

Legrand

Master Power Technologies

Rittal

Rolls-Royce

Schneider Electric

Siemens

STULZ

Vertiv

Prominent Data Center Construction Contractors

AECOM

AlDar Properties

Anel Group

Arup

Ashi & Bushnag

Atkins

Abbeydale

Advanced Vision Morocco

ARSMAGNA

b2 Architects

CAP DC

Chess Enterprises

Copy Cat Group

Dar Group

DC Pro Engineering

Deerns

Eastra Solutions

Edarat

EGEC

ENMAR Engineering

EDS Engineers

Egypro

Harinsa Qatar (HQ)

HATCO

HHM Building Contracting

Hill International

H&MV Engineering

Ingenium

Interkel

ICS Nett

INT’LTEC

ISG

JLB Architects

Laing O’Rourke

Linesight

M+W Group (Exyte)

Mace

Mercury Engineering

McLaren Construction Group

MIS

MWK Engineering

NDA Group

Orascom Construction

Prota Engineering

Qatar Site & Power

RED Engineering

RW Armstrong

Royal HaskoningDHV

Shaker Group

Sterling & Wilson

Summit Technology Solutions

Sudlows

Telal Engineering & Contracting

Tri-Star Construction

Turner & Townsend

United Egypt

Westwood Management

Prominent Data Center Investors

st Century Technology

Africa Data Centres

Adgar Investments and Development

Amazon Web Services (AWS)

Batelco

Bynet Data Communications

Digital Parks Africa

Equinix

Etisalat

EdgeConneX

Future Digital Data Systems

G42

Gulf Data Hub

Google

Galaxy Backbone

icolo.io (Digital Realty)

IXAfrica

Khazna Data Centers

Moro Hub

MedOne

MEEZA

Mobily

MainOne

Medallion Communications

Microsoft

NTT Global Data Centers

Oman Data Park

Ooredoo

Paratus Namibia

Rack Centre

Raxio Data Centres

stc

Serverfarm

Turkcell

Turk Telekom

Telehouse

Telecom Egypt

Teraco (Digital Realty)

Tencent Cloud

Wingu

New Entrants

Airtel Nigeria

Cloudoon

Compass Datacenters

Digital Realty

EDGNEX

Global Technical Realty

Infinity

Kasi Cloud

Open Access Data Centres (OADC)

Vantage Data Centers

Quantum Switch

ZeroPoint DC

SEGMENTS ANALYSIS

Infrastructure

Electrical Infrastructure

Mechanical Infrastructure

General Construction

Electrical Infrastructure

UPS Systems

Generators

Transfer Switches & Switchgear

PDUs

Other Electrical Infrastructure

Mechanical Infrastructure

Cooling Systems

Racks

Other Mechanical Infrastructure

Cooling Systems

CRAC and CRAH Units

Chillers Units

Cooling Towers, Condensers, and Dry Coolers

Other Cooling Units

Cooling Techniques

Air-based Cooling

Liquid-based Cooling

General Construction

Core & Shell Development

Installation & Commissioning Services

Engineering & Building Design

Fire Detection & Suppression

Physical Security

DCIM/BMS Solutions

Tier Standard

Tier I & Tier II

Tier III

Tier IV