Middle East Data Center Market by Infrastructure (Hardware, Software, Services), by Type (Enterprise Data Centers, and others), by Data Center Rating (Tier I, and others), by Size (Small Data Centers, and others), by Power Capacity (<0.01 GW, and Others), by Server Rack Density (<10kW, and others), by Data Center Redundancy (N+1, and others), by PUE Outlook (Less than 1.2, and others), by Design Outlook (Traditional, and others),and others- Opportunity Analysis and Industry Forecast, 2024–2030.
Industry: ICT & Media | Publish Date: 27-Oct-2025 | No of Pages: 304 | No. of Tables: 237 | No. of Figures: 182 | Format: PDF | Report Code : IC2436
Middle East Data Center Market Overview
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. The data center market, also known as the network infrastructure market, covers the entire lifecycle of specialized infrastructure for hosting computing systems, from initial planning and construction to ongoing operation and maintenance. This market includes a variety of components such as servers, storage systems, and networking equipment, that together provide services like cloud computing and connectivity solutions.
Currently, the industry is experiencing widespread adoption of cloud services and the rise of edge computing aimed at reducing latency. Key trends shaping the market include a strong emphasis on sustainability, increased cybersecurity concerns, the integration of hybrid and multi-cloud approaches, and the growing influence of 5G networks. These trends highlight the industry's proactive efforts to meet the rising demand for scalable, efficient, and secure data processing and storage solutions amid the ongoing digital transformation. According to projections by the United States International Trade Commission, the data processing and storage market is expected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.
Investment in Digital Infrastructure Accelerates Middle East Data Center Market Growth
The Middle East is experiencing rapid expansion in digital infrastructure, with governments and private players prioritizing the development of large-scale data center capacity. Strategic partnerships and cross-border collaborations are driving the creation of high-capacity facilities that support cloud adoption, AI workloads, and digital transformation initiatives. This investment momentum is strengthening the region’s position as a growing hub for hyperscale and enterprise data hosting.
Government Initiatives Drive Large-Scale Data Center Expansion
National digital transformation strategies are a key catalyst for market growth, with governments across the region promoting infrastructure development, cloud localization, and technological innovation. These initiatives aim to position the Middle East as a leading digital economy, attract foreign investment, and accelerate the adoption of advanced services such as smart cities, e-government, and high-performance computing.
High Capital Costs Remain a Barrier to Market Entry
The market faces challenges due to the significant capital required to build and operate data centers, along with compliance costs for sustainability and energy efficiency standards. Smaller enterprises and new entrants often struggle to meet these financial requirements, which can limit competition and slow the pace of infrastructure expansion in certain markets.
Edge Computing Creates New Growth Opportunities
The growing adoption of edge computing is creating opportunities for decentralized infrastructure that brings processing power closer to users. This approach improves latency, supports real-time applications, and enhances data security, making it increasingly relevant for IoT, streaming, and AI-driven workloads. The rise of edge solutions is expected to complement hyperscale growth and diversify the region’s data center landscape.
Competitive Landscape
The key market players operating in the Middle East data center industry include Amazon Web Services (AWS), Microsoft Corporation, IBM Corporation, Oracle Corporation, SAP SE, Cisco Systems, Inc., Equinix, Inc., Etisalat (e&), du (EITC), Mobily (Etihad Etisalat), Ooredoo Data Center Expansion, Zain Business Data Center, Gulf Data Hub (GDH), Pure Data Centres (Pure DC), Digital Realty and others.
Middle East Data Center Market Key Segments
By Infrastructure
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Hardware
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IT Hardware
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Servers
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Storage Systems
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Networking Equipment
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Power Infrastructure Hardware
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Uninterruptible Power Supplies (UPS)
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Generators
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Automatic Transfer Switches
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Power Distribution Units (PDUs)
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Mechanical Infrastructure Hardware
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Computer-Room Air Conditioners (CRAC/CRA Units)
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Chillers
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Racks
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Cable Management Systems
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Safety & Security Hardware
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Fire Suppression Systems
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Physical Security Systems (CCTV, access controls)
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-
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Software
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DCIM & Monitoring
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Automation & Orchestration
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Backup & Disaster Recovery
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Security Software
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Virtualization Software
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Analytics & Reporting Software
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Other Software
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Services
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Planning & Professional Services
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Site & Building Design
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System/Infrastructure Engineering
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Professional Advisory (compliance, energy audits)
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Integration & Deployment Services
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Electrical & Mechanical Installation
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Commissioning & Acceptance Testing
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Operation & Support Services
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Preventive & Corrective Maintenance
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Facilities Management / Remote Monitoring
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Support Services (helpdesk, onsite SLA support)
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Hosting & Managed Services
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Colocation & Cloud Hosting Services
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Virtual/Private Hosting Platforms
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By Type
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Enterprise Data Centers
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Colocation Data Centers
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Cloud Data Centers
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Hyperscale Data Centers
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Edge Data Centers
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Micro Data Centers
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Others
By Data Center Rating
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Tier I
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Tier II
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Tier III
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Tier IV
By Size
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Small Data Centers
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Med-sized Data Centers
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Large Data Centers
By Power Capacity
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<0.01 GW (Small)
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0.01-0.05 GW (Medium)
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0.05-0.1 GW (Large)
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0.1-0.5 GW (Hyperscale)
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>0.5 GW (Mega-campus)
By Server Rack Density
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<10kW
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10-19kW
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20-29kW
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30-39kW
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40-49kW
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>50kW
By Data Center Redundancy
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N (No Redundancy)
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N+1 (Single-fault tolerant)
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N+2 (Dual-fault tolerant)
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2N (Full duplication)
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2N+1 (Concurrently maintainable + extra spare)
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3N/2N+2 (Multi-backup fault tolerant)
By PUE Outlook
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Less than 1.2
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1.2 - 1.5
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1.5 - 2.0
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Greater than 2.0
By Design Outlook
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Traditional
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Containerized
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Modular
By End User
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Cloud Service Provider
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Technology Provider
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Telecom
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Healthcare
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BFSI
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Retail & E-commerce
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Entertainment & Media
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Government
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Energy
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Others
By Country
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Middle East
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Saudi Arabia
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United Arab Emirates (UAE)
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Israel
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Qatar
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Kuwait
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Oman
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Other Countries
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Key Players
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Amazon Web Services (AWS)
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Microsoft Corporation
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IBM Corporation
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Oracle Corporation
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SAP SE
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Cisco Systems, Inc.
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Equinix, Inc.
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Etisalat (e&)
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du (EITC)
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Mobily (Etihad Etisalat)
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Ooredoo Data Center Expansion
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Zain Business Data Center
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Gulf Data Hub (GDH)
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Pure Data Centres (Pure DC)
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Digital Realty
Report Scope and Segmentation
|
Parameters |
Details |
|
Market Size in 2023 |
USD 2.75 Billion |
|
Revenue Forecast in 2030 |
USD 6.29 Billion |
|
Growth Rate |
CAGR of 12.6% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
About the Author
Jayanta Das is an industry analyst and writer with a keen focus on emerging technologies and sustainable business practices. With a background in engineering and market research, he brings analytical depth to topics like renewable energy, green manufacturing, and industrial transformation. Jayanta is passionate about translating complex data into actionable insights for businesses navigating the shift toward eco-conscious operations.
About the Reviewer
Supradip Baul is an accomplished business consultant and strategist with over a decade of rich experience in market intelligence, strategy, technology and business transformation. His work has included rigorous qualitative and quantitative analysis across multiple industries, helping clients shape investment decisions and long-term roadmaps. Earlier in his career, he was associated with Gartner, where he contributed to industry-leading reports and market share analyses. He has worked with leading global companies and holds an MBA with a dual specialization in Marketing and Finance.
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