Middle East Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Market Research Report Covers Data Centers in the Middle East and is Segmented by Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Absorption (Non-Utilized, Utilized) and by Country (Israel, Saudi Arabia, United Arab Emirates)

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Middle East Data Center Market Size

Middle East Data Center Market Summary
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https://s3.mordorlabs.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Base Year For Estimation 2022
https://s3.mordorlabs.com/cagr/1629296433433_test~cagr_cagr.svg CAGR 14.74 %
https://s3.mordorlabs.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Tier Type Tier 3
https://s3.mordorlabs.com/globe/1629285706162_test~globe_globe.svg Largest Share by Country Saudi Arabia
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Concentration High

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Middle East Data Center Market Analysis

The Middle East Data Center Market is projected to register a CAGR of 14.74%

  • IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to achieve 2,059.5 MW by 2029.
  • Raised Floor Space: The total raised floor area of the country is expected to increase to 9.7 million sq. ft by 2029.
  • Installed Racks: The number of installed racks is expected to reach 496,769 units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029.
  • DC Facilities: There are 128 colocation data center facilities in the Middle East. Saudi Arabia holds the highest share in the region. The development of fiber connectivity, increasing reliability in power supply, and high demand for data center services from end users are increasing DC construction in both developed and developing economies.
  • Leading Market Player: Etihad Etisalat Company (Mobily) has the highest market share of 23.5% compared to its competitors in the data center market. The company currently operates at an IT load capacity of 168.3 MW and is expected to increase its capacity during the forecast period.

Middle East Data Center Market Trends

This section covers the major market trends shaping the Middle East Data Center Market according to our research experts:

Tier 3 is the largest Tier Type

  • The tier 3 segment currently holds the majority of the market share in the Middle East due to the significant advantages of its features. These tiers have a high level of redundancy and multiple power and cooling paths. The tier 3 data centers have an uptime of around 99.982%, resulting in 1.6 hours of downtime per year. With the increased adoption of edge and cloud connectivity, the tier 3 segment is expected to grow further.
  • The tier 3 segment of the Middle Eastern market operated at an IT load capacity of 464.68 MW in 2022. During the forecast period (2022-2029), the IT load capacity is expected to grow from 621.78 MW in 2023 to 1,214.86 MW in 2029, with a CAGR of 11.81%.
  • The tier 4 segment is expected to record the fastest CAGR of 26.51%. Several developing countries are focusing on getting Tier 4 certifications to benefit from complete fault tolerance and redundancy for all components. Due to such advantages, even developing countries are adopting tier 4 zones.
  • The development of digital infrastructures such as data centers is required to implement 5G applications. More recently, the expansion of 24/7 business continuity services has increased the preference for tier 3 and 4 data centers due to the growing number of global companies. Data is an essential component of BFSI companies due to the stringent laws governing data storage and protection in the market. The BFSI sector is defined by digitalization. Due to the growing usage of various banking applications, data in the BFSI sector is growing exponentially.
Middle East Data Center Market: Middle East Data Center Market, CAGR, %, By Tier Type, 2023 - 2029

Saudi Arabia is the largest Country

  • In the coming years, the Middle East region is expected to increase its investment in the data center market. Several factors are facilitating the expansion of data centers in the area. The region's governments' smart city ambitions are driving a shift in how modern communities are built. Cities of the future, supported by digital technologies, are expected to generate massive amounts of data. It is critical to optimize data capture, storage, and processing.
  • Domestic data growth and the emergence of 5G networks drive demand for localized data centers to speed up data transfer. Uncertain data sovereignty regulations in certain jurisdictions, including the GCC, drive data center investments. This emphasizes the importance of organizations such as banks retaining customer data within the country.
  • The United Arab Emirates has been a prime location for data centers in the region as one of the frontrunners in the race to establish a robust and competitive digital economy. According to Arcadis' Data Centre Location Index, the UAE's "well-established fiber broadband network" helped the country secure the top spot for mobile broadband penetration. At the same time, the ease of obtaining construction permits and new smart city initiatives make it an emerging location for data center investment.
  • Saudi Arabia launched a USD 18 billion strategy in July 2021 to establish a nationwide network of large-scale data centers. According to the Saudi Ministry of Communications and Information Technology, the first batch of investment partners includes local firms Gulf Data Hub, Al-Moammar Information Systems, and Saudi FAS Holding.
Middle East Data Center Market: Middle East Data Center Market, CAGR, %, By Country, 2023 - 2029

Middle East Data Center Industry Overview

The Middle East Data Center Market is moderately consolidated, with the top five companies occupying 55.91%. The major players in this market are Electronia, Etihad Etisalat Company (Mobily), Etisalat, Khazna Data Center and Med 1 I.C.-1 (1999) Ltd. (sorted alphabetically).

Middle East Data Center Market Leaders

  1. Electronia

  2. Etihad Etisalat Company (Mobily)

  3. Etisalat

  4. Khazna Data Center

  5. Med 1 I.C.-1 (1999) Ltd.

*Disclaimer: Major Players sorted in no particular order

Middle East Data Center Market Concentration
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Middle East Data Center Market News

  • October 2023: Mohamed bin Ali bin Mohamed Al-Mannai, minister of communications and information technology, has launched the M-VAULT 4's fourth data center building. Customers in Qatar can access cloud services through the Microsoft Cloud data center region housed in the new data center facility.
  • October 2022: The prominent network of hyperscale data centers in the Middle East and North Africa region, a joint venture between Khazna Data Centers, and Masdar and EDF have inked a deal to build a ground-mounted solar photovoltaic (PV) plant to power Khazna's new data center in Masdar City.
  • October 2022: The company announced the development of DXB2 and DXB3 with a joint capacity of 43 MW of IT load. The DXB3 facility is an extension of an existing facility transferred to Khazna following the strategic partnership between G42 and e&.

Middle East Data Center Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1. Study Assumptions & Market Definition

    2. 1.2. Scope of the Study​

    3. 1.3. Research Methodology

  2. 2. MARKET OUTLOOK

    1. 2.1. IT Load Capacity

    2. 2.2. Raised Floor Space

    3. 2.3. Colocation Revenue

    4. 2.4. Installed Racks

    5. 2.5. Rack Space Utilization

    6. 2.6. Submarine Cable

  3. 3. KEY INDUSTRY TRENDS

    1. 3.1. Smartphone Users

    2. 3.2. Data Traffic Per Smartphone

    3. 3.3. Mobile Data Speed

    4. 3.4. Broadband Data Speed

    5. 3.5. Fiber Connectivity Network

    6. 3.6. Regulatory Framework

    7. 3.7. Value Chain & Distribution Channel Analysis

  4. 4. MARKET SEGMENTATION

    1. 4.1. Data Center Size

      1. 4.1.1. Large

      2. 4.1.2. Massive

      3. 4.1.3. Medium

      4. 4.1.4. Mega

      5. 4.1.5. Small

    2. 4.2. Tier Type

      1. 4.2.1. Tier 1 and 2

      2. 4.2.2. Tier 3

      3. 4.2.3. Tier 4

    3. 4.3. Absorption

      1. 4.3.1. Non-Utilized

      2. 4.3.2. Utilized

        1. 4.3.2.1. By Colocation Type

          1. 4.3.2.1.1. Hyperscale

          2. 4.3.2.1.2. Retail

          3. 4.3.2.1.3. Wholesale

        2. 4.3.2.2. By End User

          1. 4.3.2.2.1. BFSI

          2. 4.3.2.2.2. Cloud

          3. 4.3.2.2.3. E-Commerce

          4. 4.3.2.2.4. Government

          5. 4.3.2.2.5. Manufacturing

          6. 4.3.2.2.6. Media & Entertainment

          7. 4.3.2.2.7. Telecom

          8. 4.3.2.2.8. Other End User

    4. 4.4. Country

      1. 4.4.1. Israel

      2. 4.4.2. Saudi Arabia

      3. 4.4.3. United Arab Emirates

      4. 4.4.4. Rest of Middle East

  5. 5. COMPETITIVE LANDSCAPE

    1. 5.1. Market Share Analysis

    2. 5.2. Company Landscape

    3. 5.3. Company Profiles

      1. 5.3.1. Bezeq International General Partner Ltd.

      2. 5.3.2. Bynet Data Communications Ltd.

      3. 5.3.3. EdgeConneX, Inc.

      4. 5.3.4. Electronia

      5. 5.3.5. Etihad Etisalat Company (Mobily)

      6. 5.3.6. Etisalat

      7. 5.3.7. Gulf Data Hub

      8. 5.3.8. HostGee Cloud Hosting Inc.

      9. 5.3.9. Injazat

      10. 5.3.10. Khazna Data Center

      11. 5.3.11. Med 1 I.C.-1 (1999) Ltd.

      12. 5.3.12. MEEZA

    5. 5.4. LIST OF COMPANIES STUDIED

  6. 6. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS

  7. 7. APPENDIX

    1. 7.1. Global Overview

      1. 7.1.1. Overview

      2. 7.1.2. Porter’s Five Forces Framework

      3. 7.1.3. Global Value Chain Analysis

      4. 7.1.4. Global Market Size and DROs

    2. 7.2. Sources & References

    3. 7.3. List of Tables & Figures

    4. 7.4. Primary Insights

    5. 7.5. Data Pack

    6. 7.6. Glossary of Terms

List of Tables & Figures

  1. Figure 1:  
  2. MIDDLE EAST DATA CENTER MARKET, IT LOAD CAPACITY, VOLUME IN MW, 2017 - 2029
  1. Figure 2:  
  2. MIDDLE EAST DATA CENTER MARKET, RAISED FLOOR SPACE, VOLUME IN SQ. FT.(000'), 2017 - 2029
  1. Figure 3:  
  2. MIDDLE EAST DATA CENTER MARKET, COLOCATION REVENUE, VALUE IN USD MILLION, 2017 - 2029
  1. Figure 4:  
  2. MIDDLE EAST DATA CENTER MARKET, INSTALLED RACKS, VALUE IN UNIT, 2017 - 2029
  1. Figure 5:  
  2. MIDDLE EAST DATA CENTER MARKET, RACK SPACE UTILIZATION, VALUE IN (%), 2017 - 2029
  1. Figure 6:  
  2. MIDDLE EAST DATA CENTER MARKET, SMARTPHONE USERS, VOLUME IN MILLION, 2017 - 2029
  1. Figure 7:  
  2. MIDDLE EAST DATA CENTER MARKET, DATA TRAFFIC PER SMARTPHONE, VOLUME IN GB, 2017 - 2029
  1. Figure 8:  
  2. MIDDLE EAST DATA CENTER MARKET, MOBILE DATA SPEED, VOLUME IN MBPS, 2017 - 2029
  1. Figure 9:  
  2. MIDDLE EAST DATA CENTER MARKET, BROADBAND SPEED, VOLUME IN MBPS, 2017 - 2029
  1. Figure 10:  
  2. MIDDLE EAST DATA CENTER MARKET, FIBER CONNECTIVITY NETWORK, VOLUME IN KILOMETER, 2017 - 2029
  1. Figure 11:  
  2. MIDDLE EAST DATA CENTER MARKET, VOLUME, MW, 2017 - 2029
  1. Figure 12:  
  2. MIDDLE EAST DATA CENTER MARKET, BY DATA CENTER SIZE, VOLUME IN MW, 2017 - 2029
  1. Figure 13:  
  2. MIDDLE EAST DATA CENTER MARKET, SHARE(%), BY DATA CENTER SIZE, 2017 - 2023 - 2029
  1. Figure 14:  
  2. MIDDLE EAST DATA CENTER MARKET, LARGE, VOLUME IN MW, 2017 - 2029
  1. Figure 15:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, LARGE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 16:  
  2. MIDDLE EAST DATA CENTER MARKET, MASSIVE, VOLUME IN MW, 2017 - 2029
  1. Figure 17:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, MASSIVE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 18:  
  2. MIDDLE EAST DATA CENTER MARKET, MEDIUM, VOLUME IN MW, 2017 - 2029
  1. Figure 19:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, MEDIUM, VOLUME SHARE (%), 2022 - 2029
  1. Figure 20:  
  2. MIDDLE EAST DATA CENTER MARKET, MEGA, VOLUME IN MW, 2017 - 2029
  1. Figure 21:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, MEGA, VOLUME SHARE (%), 2022 - 2029
  1. Figure 22:  
  2. MIDDLE EAST DATA CENTER MARKET, SMALL, VOLUME IN MW, 2017 - 2029
  1. Figure 23:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, SMALL, VOLUME SHARE (%), 2022 - 2029
  1. Figure 24:  
  2. MIDDLE EAST DATA CENTER MARKET, BY TIER TYPE, VOLUME IN MW, 2017 - 2029
  1. Figure 25:  
  2. MIDDLE EAST DATA CENTER MARKET, SHARE(%), BY TIER TYPE, 2017 - 2023 - 2029
  1. Figure 26:  
  2. MIDDLE EAST DATA CENTER MARKET, TIER 1&2, VOLUME IN MW, 2017 - 2029
  1. Figure 27:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, TIER 1&2, VOLUME SHARE (%), 2022 - 2029
  1. Figure 28:  
  2. MIDDLE EAST DATA CENTER MARKET, TIER 3, VOLUME IN MW, 2017 - 2029
  1. Figure 29:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, TIER 3, VOLUME SHARE (%), 2022 - 2029
  1. Figure 30:  
  2. MIDDLE EAST DATA CENTER MARKET, TIER 4, VOLUME IN MW, 2017 - 2029
  1. Figure 31:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, TIER 4, VOLUME SHARE (%), 2022 - 2029
  1. Figure 32:  
  2. MIDDLE EAST DATA CENTER MARKET, BY ABSORPTION, VOLUME IN MW, 2017 - 2029
  1. Figure 33:  
  2. MIDDLE EAST DATA CENTER MARKET, SHARE(%), BY ABSORPTION, 2017 - 2023 - 2029
  1. Figure 34:  
  2. MIDDLE EAST DATA CENTER MARKET, NON-UTILIZED, VOLUME IN MW, 2017 - 2029
  1. Figure 35:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, NON-UTILIZED, VOLUME SHARE (%), 2022 - 2029
  1. Figure 36:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COLOCATION TYPE, VOLUME IN MW, 2017 - 2029
  1. Figure 37:  
  2. MIDDLE EAST DATA CENTER MARKET, SHARE(%), BY COLOCATION TYPE, 2017 - 2023 - 2029
  1. Figure 38:  
  2. MIDDLE EAST DATA CENTER MARKET, HYPERSCALE, VOLUME IN MW, 2017 - 2029
  1. Figure 39:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, HYPERSCALE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 40:  
  2. MIDDLE EAST DATA CENTER MARKET, RETAIL, VOLUME IN MW, 2017 - 2029
  1. Figure 41:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, RETAIL, VOLUME SHARE (%), 2022 - 2029
  1. Figure 42:  
  2. MIDDLE EAST DATA CENTER MARKET, WHOLESALE, VOLUME IN MW, 2017 - 2029
  1. Figure 43:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, WHOLESALE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 44:  
  2. MIDDLE EAST DATA CENTER MARKET, BY END USER, VOLUME IN MW, 2017 - 2029
  1. Figure 45:  
  2. MIDDLE EAST DATA CENTER MARKET, SHARE(%), BY END USER, 2017 - 2023 - 2029
  1. Figure 46:  
  2. MIDDLE EAST DATA CENTER MARKET, BFSI, VOLUME IN MW, 2017 - 2029
  1. Figure 47:  
  2. MIDDLE EAST DATA CENTER MARKET, CLOUD, VOLUME IN MW, 2017 - 2029
  1. Figure 48:  
  2. MIDDLE EAST DATA CENTER MARKET, E-COMMERCE, VOLUME IN MW, 2017 - 2029
  1. Figure 49:  
  2. MIDDLE EAST DATA CENTER MARKET, GOVERNMENT, VOLUME IN MW, 2017 - 2029
  1. Figure 50:  
  2. MIDDLE EAST DATA CENTER MARKET, MANUFACTURING, VOLUME IN MW, 2017 - 2029
  1. Figure 51:  
  2. MIDDLE EAST DATA CENTER MARKET, MEDIA & ENTERTAINMENT, VOLUME IN MW, 2017 - 2029
  1. Figure 52:  
  2. MIDDLE EAST DATA CENTER MARKET, TELECOM, VOLUME IN MW, 2017 - 2029
  1. Figure 53:  
  2. MIDDLE EAST DATA CENTER MARKET, OTHER END USER, VOLUME IN MW, 2017 - 2029
  1. Figure 54:  
  2. MIDDLE EAST DATA CENTER MARKET, BY COUNTRY, VOLUME IN MW, 2017 - 2029
  1. Figure 55:  
  2. MIDDLE EAST DATA CENTER MARKET, SHARE(%), BY COUNTRY, 2017 - 2023 - 2029
  1. Figure 56:  
  2. MIDDLE EAST DATA CENTER MARKET, ISRAEL, VOLUME IN MW, 2017 - 2029
  1. Figure 57:  
  2. MIDDLE EAST DATA CENTER MARKET, SAUDI ARABIA, VOLUME IN MW, 2017 - 2029
  1. Figure 58:  
  2. MIDDLE EAST DATA CENTER MARKET, UNITED ARAB EMIRATES, VOLUME IN MW, 2017 - 2029
  1. Figure 59:  
  2. MIDDLE EAST DATA CENTER MARKET, REST OF MIDDLE EAST, VOLUME IN MW, 2017 - 2029
  1. Figure 60:  
  2. MIDDLE EAST DATA CENTER MARKET, BY MAJOR PLAYER IT LOAD CAPACITY, 2022

Middle East Data Center Industry Segmentation

Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Israel, Saudi Arabia, United Arab Emirates are covered as segments by Country.
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
Country
Israel
Saudi Arabia
United Arab Emirates
Rest of Middle East
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Market Definition

  • IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
  • ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
  • RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
  • DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
  • TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
  • COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
  • END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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Middle East Data Center Market Research FAQs

The Middle East Data Center Market size is expected to reach 902.71 mw in 2023 and grow at a CAGR of 14.74% to reach 2.06 thousand mw by 2029.

In 2023, the Middle East Data Center Market size is expected to reach 902.71 mw.

Electronia, Etihad Etisalat Company (Mobily), Etisalat, Khazna Data Center and Med 1 I.C.-1 (1999) Ltd. are the major companies operating in the Middle East Data Center Market.

In the Middle East Data Center Market, the Tier 3 segment accounts for the largest share by tier type.

In 2023, Saudi Arabia accounts for the largest share by country in the Middle East Data Center Market.

Middle East Data Center Industry Report

Statistics for the 2023 Middle East Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East Data Center analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Middle East Data Center Market Report Snapshots