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Data center market is expected to reach $8.38 billion by 2028

The Middle East and North Africa data center market is expected to reach a value of $8.38 billion by 2028 from $5.04 billion in 2022, growing at a CAGR of 8.82% from 2022-2028, according to Research and Markets.

In the Middle East and North Africa data center market, the United Arab Emirates (UAE) and Saudi Arabia play significant roles, contributing around 30% and 27% to the regional capacity, respectively. It is expected that the market in these countries will experience growth over the next four to five years due to a shift from an oil-based economy to a more digital one. Additionally, Egypt is a critical player in North Africa, followed closely by Morocco. Factors such as adopting cloud-based services, developing smart cities, and expanding fiber connectivity drive continuous investments in regional data centers.

The UAE dominates the Middle East and North Africa data center market regarding data center developments. In addition, Saudi Arabia, Israel, Egypt, and Oman are among the major contributors, with high data center development activities in the Middle East and North Africa data center market. Qatar, Egypt, Morocco, and Kuwait are emerging markets that witness significant growth due to digitalization and growth in connectivity.

In the Middle East and North Africa data center market, the presence of smart cities in the region also drives investments. The UAE, Saudi Arabia, Kuwait, Morocco, and Egypt are some of the major countries in the region that 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.

Due to the burgeoning data center activities, the Middle East and North Africa data center market is poised to offer significant revenue opportunities for construction contractors. Key players in this sector 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 and Wilson, United Egypt, Westwood Management, HHM Building Contracting, Red Engineering, and Turner & Townsend. For example, Laing O’Rourke has been selected by Khazna Data Centers to oversee the construction of a data center and office space in the Dubai Design District.

Major global cloud service providers, including Amazon Web Services, Tencent, Microsoft, Google, Alibaba, Oracle, and Huawei Technologies, are in the Middle East and North Africa (MENA) data center market. For instance, Microsoft intends to establish a cloud region in Saudi Arabia.

The presence of industrial parks, available land, and government support incentivize operators to develop data centers in various Middle Eastern and African countries. For instance, the Bahrain government has announced the launch of its first data center park, with stc Bahrain collaborating with the Ministry of Transport and Telecommunications to develop the first data center within the park.

The Middle East and North Africa data center market is experiencing continuous growth in connectivity, with the deployment of new submarine cables such as Africa-1, 2Africa, India Europe Xpress (IEX), Raman, Saudi Vision, Blue, Equiano, Medusa Submarine Cable System, and SeaMeWe – 6. These cables are expected to become operational during the forecast period, enhancing regional connectivity. Research and Markets

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