Middle East & Africa Data Center Colocation Market

Market Introduction

The Middle East & Africa data center colocation market is characterized by increase in customer base, active broadband connections, and growth of the digital economy. The Middle East & Africa exhibits some of the highest levels of broadband penetration in its financial markets with a global reach. In 2018, the MENA region only had one public cloud facility and many countries in the region had fewer than five edge nodes by global Internet providers. However, MEA’s data center colocation market is rapidly growing as more enterprises are adopting colocation services. There is a growing demand for hyperscale, altering the competitive structure, business models, and the nature of the MEA’s data center facilities. The MEA region offers lucrative growth opportunities to global investors and is rising as a potential investment site. As a result, many global players are expanding their business in the region. For instance, the world’s largest carrier-neutral colocation provider, Equinix, is expanding its facilities in the Middle East. Amazon Web Services (AWS) and Group 42 are investing in hyperscale data centers in the region. Other factors that are likely to contribute to the growth of the Middle East & Africa data center colocation market include increase in investment in big data, IoT, and cloud and rise in adoption of all-flash storage solutions, and smart city initiatives. The adoption of organization-specific software over the cloud platform is also augmenting the demand for high-computing servers, thereby bolstering the growth of the Middle East & Africa data center colocation market. Emergence of 5G services to surge demand for advanced data center infrastructure is the major factor driving the growth of the MEA data center colocation market.

Saudi Arabia, the UAE, Egypt, Morocco, and Kuwait are the leading countries facing the economic effects of COVID-19 in the Middle East & Africa. The outbreak has led to more people staying indoors, thereby adopting work-from-home practices. Many industries shifted their operational activities from a physical office to a virtual space. The shift in the working style among corporates and digitization of all work and deploying it to on cloud has increased the demand for high storage capacity servers in various industries in the region. The COVID-19 flare-up intensely affected global data center colocation market, and the lockdown forced a few difficulties to the strategic policies. Notwithstanding the pandemic, the data center colocation market estimate that there is a tremendous interest in the business, and it will fill dramatically in the estimated months. The development will withstand based on maximum usage of information utilization by the endeavors and embracing strategies of far off working.

Market Overview and Dynamics

The data center colocation market in MEA is expected to grow from US$ 2,933.22 million in 2021 to US$ 5,930.52 million by 2028; it is estimated to grow at a CAGR of 10.6% from 2021 to 2028. There is a rising demand for data center solutions that are cost-effective and offer value unique features. According to industry experts, by 2025, data centers are anticipated to consume a fifth of the power, which is enabling companies to consider power-saving measures in order to bring cost benefits for an organization. As a result, companies are opting to utilize the space available for data center scaling or creating a cost-effective data center using a disaggregated architecture. This methodology has incremented the demand for high-performance compute (HPC) architecture. HPC architecture transforms the data center by operating with low power consuming servers and efficient cooling systems and has a higher power usage effectiveness. HPCs also provide scalability, speed, and reliability. Further, the growth of electronic design automation to shorten the design cycle is bolstering the growth of the high-performance compute data center architecture. Transformation of the existing data centers with effective architecture, fast deployment, and optimized power consumption across the region is enabling organizations to achieve long-term gains. This is also propelling the demand for high-performance compute (HPC) data centers.

Key Market Segments

The MEA data center colocation market is segmented into type, enterprise size, industry, and country. Based on type, the market is segmented into retail and wholesale. The retail segment dominated the market in 2020 and wholesale segment is expected to be the fastest growing during the forecast period. Based on enterprise size, the data center colocation market is divided into SMEs and large enterprises. The large enterprises segment dominated the market in 2020 and SMEs segment is expected to be the fastest growing during the forecast period. Further, based on industry, the market is segmented into IT & Telecom, BFSI, healthcare, retail, and others. The IT & Telecom segment dominated the market in 2020 and BFSI segment is expected to be the fastest growing during the forecast period.

Major Sources and Companies Listed

A few major primary and secondary sources referred to for preparing this report on data center colocation market in MEA are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are AT&T Intellectual Property; Cyxtera Technologies, Inc.; Digital Realty Trust LP; Equinix Inc.; NTT Communications Corporation; Telehouse; and Verizon Partner Solutions. are among others.

Reasons to buy report

• To understand the MEA data center colocation market landscape and identify market segments that are most likely to guarantee a strong return
• Stay ahead of the race by comprehending the ever-changing competitive landscape for MEA data center colocation market
• Efficiently plan M&A and partnership deals in MEA data center colocation market by identifying market segments with the most promising probable sales
• Helps to take knowledgeable business decisions from perceptive and comprehensive analysis of market performance of various segment form MEA data center colocation market
• Obtain market revenue forecast for market by various segments from 2021-2028 in MEA region.

MEA Data Center Colocation Market Segmentation

MEA Data Center Colocation Market –By Type

• Retail
• Wholesale

MEA Data Center Colocation Market –By Industry

• IT and Telecom
• BFSI
• Healthcare
• Retail
• Others

MEA Data Center Colocation Market –By Enterprise Size

• SMEs
• Large Enterprises

MEA Data Center Colocation Market -By Country

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

MEA Data Center Colocation Market -Company Profiles

• AT&T Intellectual Property
• Cyxtera Technologies, Inc.
• Digital Realty Trust LP
• Equinix Inc.
• NTT Communications Corporation
• Telehouse
• Verizon Partner Solutions. 

Middle East & Africa Data Center Colocation Market Strategic Insights

Middle East & Africa Data Center Colocation Market Segmentation Analysis

Middle East & Africa Data Center Colocation Market Report Highlights

Middle East & Africa Data Center Colocation Report Scope

Middle East & Africa Data Center Colocation Market Country and Regional Insights