CHICAGO, July 12, 2023 /PRNewswire/ — Arizton recently published a research report on the Middle East data center market and Africa data center market. The report includes current market trends, challenges, and dynamics & provides real-time insights that enable companies to leverage the change & make effective, strategic decisions.

Arizton Advisory & Intelligence provides competitive and insightful business intelligence across various industry verticals. Our expertise and knowledge ensure that the analysis provided is comprehensive, detailed, and complete. The analysis helps our client organizations to make insightful decisions and devise marketing strategies for their businesses. The actionable insights delivered through our market research provide a comprehensive market analysis at every level of market segmentation in the industry.

Middle East & Africa Data Center Market Report Scope

The Middle East Data Center Market Investment to Reach $7.94 Billion by 2028

The Middle East data center market has several global support infrastructure providers with expertise in providing OCP scale infrastructure. Some of the support infrastructure providers in the industry include ABB, Airedale, Alfa Laval, Delta Electronics, Cummins, and Caterpillar.

The Middle East is one of the key locations for investments in renewable energy. Solar energy is available in abundance and is one of the region’s most reliable sources of renewable energy. Companies investing in renewable energy install solar panels and work on innovations to benefit from solar energy generation. Middle Eastern countries have a long-term vision for renewable energy installation, which drives data center investments since many data center operators intend to use renewable energy in their data centers for the long term. The rise in data center power consumption and the need to reduce carbon emissions prompt data center service providers to purchase renewable energy sources to power their existing and upcoming facilities.

Middle Eastern countries are working toward adopting digital transformation to attract foreign investments. 5G network deployment fuels digital transformation, IoT, smart cities, and the fourth industrial revolution. The rapid investment in 5G technology increases the demand for high-bandwidth internet in Tier II and Tier III cities, thereby leading to the generation of a substantial amount of data, further driving data center development to process the information. 5G network services play a key role in supporting enterprise digitalization and will drive the adoption of IoT applications.

Some telecom operators in the Middle East data center market have deployed 5G network services; some are in 5G trials. Middle Eastern countries such as the UAE, Saudi Arabia, Oman, Kuwait, Bahrain, and Qatar commercially deployed 5G network services. Turkey, Israel, Jordan, Lebanon, and Iran are other Middle Eastern countries in 5G planning and are yet to deploy commercial services in the upcoming years.

Key Trends

• 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.
• In the Middle East data center market, investments in cooling infrastructure contribute the major share of more than 50% in the mechanical infrastructure due to the high temperature in some countries during the peak summers.
• The region witnessed growth in the deployment of data centers in Tier III and Tier IV certification in the design phase/construction phase of the region. In comparison, most private and public entities (BFSI, education, government) have received Uptime Institute’s Tier III/IV certification during the design phase or for the constructed facility.
• In September 2022, Khazna Data Centers signed an MOU with China-based GDS Services to develop data centers across the Middle East and APAC.
• In September 2022, Khazna Data Centers and BEEAH Digital formed a JV. The JV will be termed as One Data Center SPV. The newly formed company plans to build a 9-MW data center in Sharjah and UAE.

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The Africa Data Center Market Will Witness Investments of $4.92 Billion by 2028

In the Africa data center market, power capacity is expected to reach 240.5 MW by 2028. The African market is one of the significantly growing markets with rising adoption of cloud services among organizations in sectors such as healthcare, education system, and government entities. Africa has registered a CAGR of more than 20% in the past four years for cloud adoption, and this trend is supposed to continue with increased deployment of 5G, increasing submarine cable connectivity, and a shift toward the cloud. Also, the growing need for data security and portability is driving the growth of the cloud service market. Cloud service adoption and usage are growing in the market due to the increased interest from global cloud service providers and the development of data centers by cloud operators. Entities such as banks that operate sensitive data are shifting their focus to transfer and operate data through cloud servers, whether in-house or cloud service providers. The growing adoption of cloud services is also increasing the revenue of the public cloud market. Global cloud providers such as Amazon Web Services (AWS), Microsoft, Google, Oracle, and Huawei Technologies have a strong presence in South Africa with their cloud regions.

Key Highlights

• The South African data center market is one of the major data center markets in the African region. Low electricity and land costs, renewable energy projects, and data protection laws are the major factors expected to drive the data center market in the future.
• In July 2021, the Protection of Personal Information Act (POPIA) became effective in controlling the misuse of citizens’ sensitive and personal information. Organizations that do not comply with the act will be penalized either through a fine of around $1 million.
• Digital Realty and Equinix have chosen acquisition as a medium to enter the market, while Vantage Data Centers has opened its own facility. Many other global players might follow the same path to enter the African market. South Africa, Kenya, and Nigeria are major contributors to the data center area in the African region.
• In November 2022, Digital Realty opened the JB4 facility with 20,000 square feet of area in phase 1 of the facility.
• In July 2022, Vantage Data Centers opened its first data center (JNB11) with a white floor space of around 130,000 square feet. Once fully built, the campus will have three data center buildings span over 650,000 square feet of area.

Looking for More Information? Download the Free Sample Report: https://www.arizton.com/request-sample/3906

Market Segmentation

Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Other Cooling Units

Cooling Techniques

• Air-based Cooling Technique
• Liquid-based Cooling Technique

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM/BMS Solutions

Tier Standard

• Tier I & II
• Tier III
• Tier IV

Geography

• Africa
• South Africa
• Kenya
• Nigeria
• Egypt
• Ethiopia
• Other African Countries

Arizton’s Expertise in Data Center Industry 

We continuously track data center investments worldwide and strive to provide accurate market analysis on investments across 20+ infrastructure categories. 

Arizton’s team of principal consultants and analysts work towards publishing extensive secondary and primary research that is credible, resourceful, and data-driven. With over 5+ years of experience, Arizton has helped several Fortune 500 companies with data-driven insights that enabled them to expand their businesses to niche regions, added over a billion dollars in revenues, and effective go-to-market strategies. We offer various product portfolios to meet the client requirements, which align with their key business strategies and identify high-value growth avenues.  

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What We Deliver to Our Clients? 

• Competitive Intelligence
• Cost Analysis & Business Forecast
• Business Expansion Avenues
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• Go-To-Market Strategy
• Data Center Ancillary Insights

Check Out Some of the Top-Selling Research Reports:     

• Middle East and Africa Data Center Colocation Market – Industry Outlook & Forecast 2022-2027
• South Africa Data Center Market – Investment Analysis & Growth Opportunities 2022-2027
• Middle East Data Center Construction Market – Industry Outlook & Forecast 2023–2028
• Africa Data Center Market Landscape 2023-2028

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