Middle East Data Center Market is Expected to Reach USD 6.29 Billion by 2030

06-Nov-2024

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Government investment towards the data center development across the region is driving the Middle East data center market demand, during the forecast period.

The Middle East Data Center Market size was valued at USD 2.75 billion in 2023, and is predicted to reach USD 6.29 billion by 2030, at a CAGR of 12.6% from 2024 to 2030, according to the new research by Next Move Strategy Consulting.

The Middle East, including countries such as the UAE, Saudi Arabia, and Qatar, is experiencing significant advancements in data center infrastructure. Recently, the UAE's Ministry of Investment and Egypt's Ministry of Communications signed a Memorandum of Understanding (MoU) to invest in Egypt's digital infrastructure, with plans to potentially develop 1GW of data center capacity.

This collaboration aligns with Egypt's "Digital Egypt" Vision 2030 plan and aims to establish 100MW initially, with ongoing discussions about incentives. It highlights the expanding data center market in Egypt, projected to reach USD 1.1 billion by 2030, and emphasizes the strategic role of partnerships in enhancing digital infrastructure and technological capabilities within the region.

However, unlike these advancements, the Middle East data center market growth faces challenges due to high initial investment requirements. The data center sector encounters significant hurdles, primarily because of the substantial upfront costs and strict environmental regulations.

Building and maintaining network infrastructure demands considerable financial commitments, posing barriers for smaller enterprises and startups. Additionally, adhering to environmental standards requires continuous investment in energy-efficient technologies hinders the overall Middle East data center market growth.

On the other hand, embracing edge computing presents lucrative opportunities for the Middle East data center market expansion. By reducing latency and enabling real-time processing, edge computing supports applications such as the Internet of Things (IoT) and Augmented Reality (AR), relieving pressure on centralized cloud data centers while providing scalability and flexibility.

This decentralized approach enhances security by processing sensitive data locally and aligns with evolving digital landscapes, offering diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada highlight the growing interest in edge computing solutions, indicating a concerted effort to address connectivity issues and bridge the digital divide.

Request for a Sample here: https://www.nextmsc.com/middle-east-data-center-market/request-sample

The market players operating in the Middle East data center industry include Equinix, Zenlayer, MOD Mission Critical (MOD), Microsoft Azure, Oracle and others.

Key Insights from the Middle East Data Center Market Report:

  • The information related to key drivers, restraints, and opportunities and their impact on the Middle East data center market is provided in the report.

  • The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

  • The report includes the market share and competitive analysis of the leading players in the Middle East data center sector.

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