Company Logo
Middle Eastern and African Data Center Colocation Market
Middle Eastern and African Data Center Colocation Market
Dublin, Dec. 21, 2022 (GLOBE NEWSWIRE) -- The "Middle East and Africa Data Center Colocation Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The Middle East and Africa data center colocation market is expected to grow at a CAGR of 8.68% during 2022-2027.
Some of the significant factors that are acting as a factor for the growth of the data center colocation market in the Middle East & Africa include increased digitalization initiatives across several countries, cloud service providers colocating the data centers, growth in connectivity, and others.
The market has witnessed the entry of several global colocation operators through the acquisition of local colocation operators. For instance, in August 2022, Digital Realty announced the completion of the acquisition of African colocation operator Teraco Data Environments. The region is witnessing significant initiatives for connectivity with growth in submarine cable deployments.
In the Middle East & Africa, Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Israel, Turkey, Lebanon, Yemen, Iran, South Africa, Egypt, Nigeria, Kenya, Morocco, and Djibouti are some of the countries with more submarine cable connectivity, which connects Americas, European, and Asian countries boosting the Middle East and Africa data center colocation market.
MARKET TRENDS
COVID-19 Impact on Data Center Investments
Due to the COVID-19 pandemic, the demand for data center services in the Middle East & Africa has increased with the heightened access to internet-related services aided by nationwide lockdowns imposed by governments in March 2020. Online shopping, even post-COVID-19, has increased the demand for online platforms compared to traditional shopping.
In Turkey, there was an 85% increase in online shopping YOY, and the e-commerce sector in Turkey expects to reach over USD 50 million by the end of 2021. For instance, Carrefour, a retail grocery company, witnessed a sales increase of around 50% in Q1 2020. Such factors are becoming a major contributor to the growth of the Middle East and Africa data center colocation market
Story continues
Smart City Initiatives Across Several Countries Aiding the Growth of Digitalization
In the Middle East and Africa, several companies and governments have taken the initiative to invest in the development of smart cities. The development of smart cities is aiding the growth in digitalization and further driving the demand for data center construction.
Some smart city initiatives in the Middle East and Africa data center colocation market include the Dubai South project and Zayed Smart City Project. Several cities are being developed as smart cities, including Dubai, Abu Dhabi, Cape Town, Lagos, Nairobi, Bezeq, and others
5G Deployments Will Drive Edge Data Center Investments
The Middle East & African countries are working toward adopting digital transformation to attract foreign investments. 5G network deployment fuels the digital transformation, IoT, smart cities, and the fourth industrial revolution.
Some telecom operators in the Middle East & Africa have deployed 5G network services, and some are in 5G trials. The Middle East & African countries such as the UAE, Saudi Arabia, Oman, Kuwait, Bahrain, Qatar, and South Africa commercially deployed 5G network services
Turkey, Israel, Jordan, Lebanon, Iran, Nigeria, Kenya, Angola, and Uganda are other the Middle East & African countries in 5G planning and are yet to deploy commercial services during the forecast period. Rapid investments in 5G technology and their deployment will increase the number of connected devices, leading to the generation of a substantial quantity of data, thereby increasing investments in edge data centers in the Middle East and Africa data center colocation market
SEGMENTATION ANALYSIS
The colocation services segment in the Middle East and Africa data center colocation market is dominated by retail colocation with a market share of 67%. It is expected to grow with a CAGR of 10.99%; it is supported by construction from several local and global colocation operators.
Although the presence of cloud service providers is steadily growing, that is expected to boost the wholesale colocation in the region. Some countries in the market are witnessing growth in demand from cloud service providers. Hence, the wholesale colocation space is expected to grow at a higher CAGR during the forecast period
Most centers operating in the Middle East and Africa data center colocation market are adopting N+N redundant infrastructure, while most centers are designing facilities with space for installing up to 2N redundant UPS systems to cope with diverse feed designs of the facility and frequent power outages. In most Tier III facilities, UPS systems are adopted as N+1 redundant systems, while other facilities have installations of N+N UPS systems
Edge facility deployment will include single-phase lithium-ion UPS and monitored and switched PDUs. Therefore, emerging edge facilities will majorly boost the Middle East and Africa data center colocation market growth
REGIONAL ANALYSIS
The Middle East and Africa data center colocation market attracted investments from cloud service providers such as Google, Amazon Web Services, Microsoft, Oracle, and Tencent across the Middle East. Major cloud service providers are expanding their presence in the region during the forecast period, which drives the demand for wholesale colocation services in the region
Regarding investment, Abu Dhabi is the preferred location, with major investments from colocation, enterprise, and government entities. In 2021, Dubai witnessed investments from colocation service providers such as Equinix, Moro Hub, and Gulf Data Hub
The Kingdom of Saudi Arabia has implemented its Vision 2030 economic strategy to boost the technology sector. It plans to use 5G to support 45 million IoT devices, generating a market worth USD 12 billion. In Saudi Arabia, some significant drivers that complement the Middle East and Africa data center colocation market are cloud adoption, smart city developments, 5G network deployments, digitalization, and submarine cable connectivity investments
VENDOR LANDSCAPE
Major operators in the Middle East and Africa data center colocation market include Group 42, Equinix, Teraco Data Environments, Gulf Data Hub, STC, Turkcell, Africa Data centres, IXAfrica, Rack Centre, and others.
Vendors are increasing their presence in the Middle East & African countries, which is likely to boost revenue growth, primarily due to the increased construction of large data centers in countries such as UAE, Saudi Arabia, South Africa, and Israel.
The Middle East and Africa data center colocation market is expected to witness more mega data center constructions to cope with the expected growth in demand for wholesale colocation by cloud service providers, which will likely add revenue opportunities for infrastructure providers under their respective operating segments.
Many operators are also adopting units from different vendors to provide efficient cooling solutions for the facility. Several operators depend on local resellers and skilled local experts for installation, commissioning, and maintenance services. Several infrastructure providers in the market offer specific products or a complete range of infrastructure solutions suitable for data centers.
In the Middle East & Africa, the construction of data centers is increasing significantly, and greenfield data center development is growing YOY and witnessing a strong contribution from modular data centers in the region.
The Middle East and Africa data center colocation markets have global and local construction contractors and engineering and architectural firms. The growth in the market will provide opportunities for local sub-contracts in construction, engineering, and architectural verticals.
Market Dynamics
Market Opportunities & Trends
Edge Data Center Investments Fueled by 5G Deployment
Data Center Investments Driven by Smart City Initiatives
Submarine & Inland Cable Deployment
Adoption of Renewable Energy Sources
Market Growth Enablers
Data Center Investments Fueled by Big Data & Iot
Migration from On-Premise Infrastructure to Colocation & Managed Services
Deployment of Modular Data Centers
Covid-19 Impact on Data Center Investments
Market Restraints
Data Center Security Challenges
Dearth of Skilled Workforce
Location Constraints on Data Center Development
Prominent Support Infrastructure
4Energy
ABB
Airedale International Air Conditioning
Alfa Laval
Canovate
Caterpillar
Cummins
Delta Electronics
EAE Group
Eaton
EVAPCO
Enlogic
Enrogen
HITEC Power Protection
Johnson Controls
Legrand
Master Power Technologies
Rittal
Rolls-Royce
Schneider Electric
Shenzhen Envicool Technology
Siemens
STULZ
Vertiv
Prominent Construction Contractors
Prominent Data Center Investors
New Entrant
Segmentation by Colocation Service
Retail Colocation
Wholesale Colocation
Segmentation by Infrastructure
Segmentation by Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Segmentation by Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
Segmentation by Cooling Technique
Segmentation by General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM/BMS
Segmentation by Tier Standard
Read more here:
- HighGrain Brewing Co. will open second location in Springfield Township - WLWT Cincinnati - May 8th, 2024
- Why companies are turning to colocation now more than ever - DatacenterDynamics - May 8th, 2024
- Garsnett Beacon Candle Co. to open Saugatuck location Thursday - HollandSentinel.com - May 8th, 2024
- Solar, wind and storage co-location: Electricity cost reduction - Energy Live News - Energy Made Easy - April 24th, 2024
- Window and door company JELD-WEN to close Rusk Co. location, affecting over 300 jobs - WSAW - April 14th, 2024
- NHS Trust 'over-egged' think tank's support for new cancer centre - Nation.Cymru - April 6th, 2024
- Single-cell and spatial analyses revealed the co-location of cancer stem cells and SPP1+ macrophage in hypoxic ... - Nature.com - March 28th, 2024
- Data Center Colocation Market size is set to grow by USD 66.57 bn from 2024-2028, American Tower Corp., AT and T ... - PR Newswire - March 28th, 2024
- Mighty Squirrel Brewing Co. is opening a Fenway location this week - The Boston Globe - March 20th, 2024
- Fastrack Technology's three keys to making the most of colocation - IT Brief Australia - March 20th, 2024
- Co-location agreement between the EU Delegation and Spain - EEAS - March 20th, 2024
- Browns Doughnut And Pastry Co. Opening Second Location In Bucks - Patch - March 12th, 2024
- Where District 5 Board of Education candidates stand on the charter school co-location issue - The Eastsider - March 4th, 2024
- Data Center Colocation Market to Reach $46.30 Billion by 2028, More than 5,175.6 MW Power Capacity to be Added in ... - Yahoo Finance - March 4th, 2024
- Rittal Announces Colocation Rack Initiative to Meet the Growing Demand for Colocation Market - PR Newswire - March 4th, 2024
- Sheetz to host grand opening of new Montgomery Co. location - WHIO - February 22nd, 2024
- Sheetz to host grand opening of new Montgomery Co. location - Yahoo News - February 22nd, 2024
- Pasta Supply Co. is opening a second SF location in the Mission - San Francisco Chronicle - February 22nd, 2024
- Educators and Families Win Limits on Co-Location - United Teachers Los Angeles - UTLA - February 22nd, 2024
- Co-working members' club The Malin opens wood-filled Nashville location - Dezeen - February 22nd, 2024
- Poplar Avenue retail location of Whimsy Cookie Co. closed; property to be demolished - Memphis Business Journal - The Business Journals - February 11th, 2024
- Data Center Colocation Market projected to hit USD 178.7 billion at a 15.3% CAGR by 2030 according to a new... - WhaTech - February 3rd, 2024
- Singapore Data Center Colocation Market: from US$ 1,543.9 Mn in 2021 to US$ 3,586.2 Mn by 2027 according to... - WhaTech Technology and Markets News - January 25th, 2024
- Simmtech preparing for another colocation investment with Micron: CEO Chun - Business Standard - January 13th, 2024
- Brunswick Co. Utility Billing moves to new location - WECT - January 5th, 2024
- USD 202.71 Billion Colocation Market to Reach By 2030 at CAGR of 15.7%, Current Trends and Growth Analysis - EIN News - December 18th, 2023
- Data Centre Colocation Market is expected to reach US$ 279.1 billion by 2034, rising at a 14.9% CAGR | Future Market ... - Yahoo Finance - December 18th, 2023
- The forest beside the clear-cut - CBC.ca - December 10th, 2023
- Coffee Co. announces grand opening of 5th Central Pennsylvania location - ABC27 - December 10th, 2023
- Permit to relocate Line 5 in Straits of Mackinac approved with conditions - WILX - December 2nd, 2023
- Offshore Wind and CCS Colocation Forum commissions vital ... - The Crown Estate - December 2nd, 2023
- TDS hosts grand opening for West Bend location - Greater Milwaukee Today | GMToday.com - December 2nd, 2023
- Danville Brewing Co. To Open 2nd Location, Biergarten In Pleasanton - Patch - December 2nd, 2023
- Drug Supplier Sentenced to 14 Years in Federal Prison - Department of Justice - December 2nd, 2023
- Big changes to 'Best of BMO' top analyst stock picks - The Globe and Mail - December 2nd, 2023
- Violent Boston Gang Member Who Posed with Firearms on ... - Department of Justice - December 2nd, 2023
- As One Clovis Brewer Pulls Back, Another Fills the Space - gvwire.com - December 2nd, 2023
- Colombian National Extradited from Colombia to the United States ... - Department of Justice - December 2nd, 2023
- More than 8,300 wreaths to be placed on veterans' graves at Louisville cemetery this holiday season - WHAS11.com - December 2nd, 2023
- Domestic violence prevention and recovery hub launches in the South - Premier of South Australia - December 2nd, 2023
- Caribou Coffee Brookfield location opens today | Waukesha Co ... - Greater Milwaukee Today | GMToday.com - December 2nd, 2023
- Sacramento's New Helvetia Brewing Co. wants to turn into a community and employee-owned co-op - KCRA Sacramento - December 2nd, 2023
- Roofing plant breaks ground in Bryan - KBTX - December 2nd, 2023
- The Rise of the Meta City - HBR.org Daily - December 2nd, 2023
- Prime IV Hydration & Wellness to Debut in Connecticut with Latest ... - Club Industry - December 2nd, 2023
- "Adaptavate Wants To Lead The Carbon Revolution And Enable ... - Carbon Herald - December 2nd, 2023
- Portland's departing health director is proud of the work she's done - Press Herald - December 2nd, 2023
- Hut 8 and USBTC Announce Completion of Business Combination - GlobeNewswire - December 2nd, 2023
- BT Group Newsroom BT partners with Digital Realty to help ... - BT newsroom - December 2nd, 2023
- Kevin Nerwinski: There's a lot going on in Lawrence Township - Community News - December 2nd, 2023
- Closing the feedback-feeding loop of the radio galaxy 3C 84 - Nature.com - December 2nd, 2023
- InterSystems cloud integration service comes to NZ and more briefs - Healthcare IT News - November 24th, 2023
- Lowndes Co. Feed the City serves over 500 people - WALB - November 24th, 2023
- Rogers brings three proposed towers to HE | The Highlander - The Highlander Newspaper - November 24th, 2023
- Safe Centre of Peel opening second location to support survivors of ... - pentictonherald.ca - November 24th, 2023
- WOMEN EMPOWERMENT AND BUSINESS MATCHING AT ... - PR Newswire - November 24th, 2023
- Gov. Andy Beshear announces Build-Ready location in Rowan Co. - WYMT - November 24th, 2023
- Vertiv expands African workforce as business grows - ITWeb - November 24th, 2023
- Treasury Releases a Swath of Guidance on the Investment Tax Credit - JD Supra - November 24th, 2023
- The Hard Bean Brunch Co. opens its second location in Langley ... - Daily Hive - November 24th, 2023
- How the White House's AI Executive Order could increase U.S. ... - Brookings Institution - November 24th, 2023
- 7,000 veterans buried at Louisville cemetery may not have a wreath this holiday season. How you can help. - WHAS11.com - November 24th, 2023
- An equation co-written with AI reveals monster rogue waves form all the time - Popular Science - November 24th, 2023
- Supporting Yorkshire: Why I&L space development is crucial for ... - The Business Desk - November 24th, 2023
- Former UKFast founder and CEO found guilty of rape in Manchester ... - CRN UK - November 24th, 2023
- UPDATE: NH DHHS Advises Consumers of Expanded Wilcox Ice ... - New Hampshire Department of Health and Human Services - November 24th, 2023
- How CBI Bungled Up The NSE Scam Probe - BW Businessworld - November 24th, 2023
- Experts shed light on how autism affects the diagnosis, treatment of ... - News-Medical.Net - November 24th, 2023
- Q&A: New report examines myths hampering advancement of women in workplace, actual barriers and possible solutions - Phys.org - November 24th, 2023
- Factory evacuated due to building fire in Witherlea, Marlborough - Stuff.co.nz - November 24th, 2023
- After 78 years in business, Curry Ace Hardware is acquired by ... - The Patriot Ledger - November 24th, 2023
- Travis Kelce: Chipotle renames Kansas City location to honor Chiefs star's 2011 misspelled tweet, after the hi - Daily Mail - November 24th, 2023
- A spotlight on the winners of Yelp's Veteran Business Fund - Yelp Blog - November 24th, 2023
- #OTGYpsi: Ypsilanti proves to be an attractive location for new ... - WEMU - November 24th, 2023
- Randi Weingarten's Not-So-Dandy Year The Heartland Institute - The Heartland Institute - November 24th, 2023
- The Secret Locations Of Bhutan's Royal Bitcoin Mines - Forbes - November 24th, 2023
- Pushing The Limits Of HPC And AI Is Becoming A Sustainability ... - The Next Platform - November 24th, 2023
- How the winter weather affects The Cup - The Brown and White - November 24th, 2023
- For the owners of MatchBox Candle Co., expanding into Steamboat ... - Steamboat Pilot & Today - November 24th, 2023
- Paws Cascadia brings Pacific Northwest flavor and years of ... - The Reflector - November 24th, 2023