+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Middle East & North Africa Colocation Markets: Cloud, Hyperscale, and the Golden age of MENA Data Centers

  • ID: 4649569
  • Report
  • October 2018
  • Region: Middle East, Africa
  • 80 Pages
  • Xalam Analytics
1 of 3

FEATURED COMPANIES

  • Alibaba
  • EO Datacenter
  • Google
  • Inwi
  • Medasys
  • NourNet
  • MORE

Middle East and North African (MENA) data center colocation markets have long been the object of one of the most peculiar dichotomies in the global digital economy. MENA digital markets are incredibly deep, supported by a population of 300m, nearly 200m active broadband connections, and a GDP of around $2 trillion. The region is home to some of the highest levels of broadband penetration in emerging markets, financial markets with global reach and the theater for some of the most ambitious exercises in digital transformation in the modern world.

And yet, in the midst of such a digital boom, the MENA data center colocation market - which truly, should be thriving in light of the above-, has comparatively been plodding along. Until 2018, the MENA region only had one public cloud facility by one of the world’s top-5 hyperscale cloud providers. Half the countries in MENA have fewer than 5 edge nodes by global CDN and Internet providers.

This, however, is changing; a colocation market that has heretofore been playing catch-up is now on the cusp of considerable growth. More enterprises are adopting colocation services. And in the most significant illustration of transformation, at least 9 public cloud data centers are slated to become operational in MENA in 2019. Hyperscale demand is transforming colocation demand patterns and volumes, altering the colo market’s traditional competitive structure, business models, and the very nature of the region’s data center facilities.

This report provides an analysis of this ongoing transformation, including the nature of the current data center infrastructure, enterprise demand for colocation, revenue structure, and hyperscale cloud provider impact on supply, revenue, and overall competitive market structure.

A reference report for all stakeholders and investors in MENA colocation and Internet infrastructure markets.

Executive Summary

  • Middle East and North African (MENA) data center colocation markets have long been the object of one of the most peculiar dichotomies in the global digital economy. MENA digital markets are increasingly deep, supported by a population of 300m, nearly 200m active broadband connections, and a GDP of around $2 trillion.
  • The region is home to some of the highest levels of broadband penetration in emerging markets, financial markets with global reach and a theater for some of the most ambitious exercises in digital transformation in the modern world. According to Cisco, the Middle East and Africa region will have the fastest rate of mobile data traffic growth in the world through 2021.
  • And yet, in the midst of such a digital boom, the MENA data center colocation market - which truly, should be thriving in light of the above-, has comparatively been plodding along. Until 2018, the MENA region only had one public cloud facility by one of the world’s top-5 hyperscale cloud providers. Half the countries in MENA have fewer than 5 edge nodes by global CDN and Internet providers, an illustration of the caution with which global Internet players have approached the region.
  • Colocation space and power supply grew in the mid-teens between 2014 and 2017, a solid, if unspectacular pace, held back by high costs of wholesale connectivity and the ultra-dominance of a small number of telcos in key markets.
  • This, however, is changing; a colocation market that has heretofore been playing catch up is now on the cusp of considerable growth. More enterprises are adopting colocation services. Six of the top ten global CDN players now have edge nodes in the region. The world’s largest carrier-neutral colocation provider, Equinix, is expanding its facilities in the Middle East.
  • And in the most significant illustration of transformation, at least 9 public cloud data centers are slated to become operational in MENA in 2019. Hyperscale demand is transforming colocation demand patterns and volumes, altering the colo market’s traditional competitive structure, business models, and the very nature of the region’s data center facilities.
  • We project MENA colocation supply capacity to nearly double between 2017 and 2020, with revenue exploding to a 20%+ run-rate, and ushering in what we see as a golden age for the region’s multi-tenant data centers.
  • This report provides an analysis of this ongoing transformation, including the nature of the current data center infrastructure, enterprise demand for colocation, revenue structure, and hyperscale cloud provider impact on supply, revenue, and overall competitive market structure.
  • A reference report for all stakeholders and investors in the MENA colocation and Internet infrastructure markets.
Note: Product cover images may vary from those shown
2 of 3

FEATURED COMPANIES

  • Alibaba
  • EO Datacenter
  • Google
  • Inwi
  • Medasys
  • NourNet
  • MORE

EXECUTIVE SUMMARY: ENTERING THE GOLDEN AGE OF MENA DATA CENTER COLOCATION

  • MENA colocation: State of the market - 2018
  • MENA colocation: Market outlook - 2020
  • Market Summary - The leaders: UAE and KSA
  • Market Summary - The risers: Bahrain, Oman, Qatar
  • Market Summary - The latecomers: Tunisia, Morocco, Egypt, and Algeria?

1. MENA Data Center Colocation: Breaking Down the Numbers

  • Middle East & North Africa - ~10 core markets, 180m broadband connections, $2 trillion GDP
  • MENA colocation growth has been solid, if unspectacular
  • How many MTDC facilities in the Middle East & North Africa?
  • How large are MENA colo facilities? A statistical distribution
  • Charting the colo markets: KSA and the UAE lead the way
  • Charting the metros: Riyadh, Dubai, then everybody else

2. The Hyperscale Impact on MENA Colocation

  • Global Internet and content providers are bulking up their MENA presence
  • CDN provider presence in MENA
  • The hyperscale are coming to MENA
  • How the hyperscale are transforming the MENA colocation market
  • The hyperscale impact - colo supply growth, wholesale providers and Bahrain
  • AWS and the Bahrain choice

3. MENA Colo Outlook: It’s a Data Center Boom

  • MENA colocation market outlook: a snapshot view
  • It’s a data center boom - colocation capacity projected to nearly double by 2020
  • MENA colocation revenue outlook: the hyperscale are coming - but enterprise revenue remains core
  • MENA market outlook - KSA and the UAE still lead the way, Morocco emerges

4. Country summary

  • Tunisia: when proximity to Europe hurts colocation
  • Morocco: hyperscale demand and the connectivity challenge
  • Egypt: Can colo overcome Telecom Egypt’s market dominance?
  • Saudi Arabia (KSA): The enterprise will sustain MTDC colocation
  • United Arab Emirates: MENA’s cloud and connectivity nexus

List of Charts

  • MENA MTDC Colocation Market Overview
  • MENA MTDC colocation facilities - 2014-17
  • MENA MTDC colocation space - 2014-17
  • MENA MTDC colocation power - 2014-17
  • Where they are: MENA MTDC facilities - 2018F*
  • Share of MENA MTDC colocation space by provider type - 2018
  • Distribution of MENA MTDC facilities - View by colocation white space surface - 2018
  • Distribution of MENA MTDC facilities - View by power capacity - 2018
  • Distribution of MENA MTDC facilities - View by colocation white space surface - 2020F
  • MENA MTDC colocation markets - view by metro - Q3 2018
  • MENA MTDC colocation markets - Power - view by country - Q3 2018
  • MENA MTDC colocation markets - Colo space - view by country - Q3 2018
  • MENA top-10 colocation metros - based on colocation white space - 2018 F
  • MENA top-10 colocation metros - based on gross power - 2018 F
  • The Hyperscale Impact
  • Number of CDN & Public Cloud points of presence in MENA - by country - Q3 2018
  • Number of CDN & Public Cloud points of presence in MENA - by metro - Q3 2018
  • Public cloud data centers in MENA - Q3 2018
  • Public cloud data centers around the world - Q3 2018 (Operational + Announced)
  • MENA Public Cloud data centers by country - 2019 F
  • MENA Public Cloud data centers by provider - 2019 F
  • MENA MTDC Colocation Market Outlook
  • MENA MTDC colocation space - based on focus of the facility - 2017-20
  • MENA colocation revenue - share by key segment - 2017 vs. 2020
  • Our projections for the MENA colocation market*
  • MENA MTDC colocation space - 2017-20
  • MENA MTDC colocation power - 2017-20
  • MENA MTDC colocation revenue - 2014-20F
  • MENA MTDC - Revenue growth by demand segment - 2017-20
  • MENA MTDC colocation revenue by country - 2014-20F
  • MENA MTDC - Revenue growth by country - 2017-20
  • MENA MTDC Country Analysis
  • Tunisia: Colocation data center map
  • Tunisia colocation market position - as of Q2 2018*
  • Tunisia MTDC colocation - Racks
  • Tunisia MTDC colocation - gross power
  • Tunisia colocation - Share of rack supply by provider - 2018 F
  • Tunisia Share of rack supply by provider type - 2018 F
  • Tunisia Market Outlook: 2017-20 CAGR
  • Morocco colocation market overview - as of Q2 2018
  • Morocco: Colocation data center map
  • Morocco: Key colocation player summary
  • Morocco MTDC colocation - Racks
  • Morocco MTDC colocation - gross power - based on focus of the facility
  • Morocco colocation - Share of rack supply by provider - 2018 F
  • Morocco Share of rack supply by provider type - 2018 F vs. 2020 F
  • Morocco Market Outlook: 2017-20 CAGR
  • Egypt colocation market overview - as of Q2 2018
  • Egypt: Colocation data center map
  • Egypt colocation market position - as of Q2 2018*
  • Egypt MTDC colocation - Racks
  • Egypt MTDC colocation - gross power - based on focus of the facility
  • Egypt - colocation - Share of rack supply by provider - 2018 F
  • Egypt - Share of rack supply by provider type - 2018 vs. 2020 F
  • Egypt: Market Outlook: 2017-20 CAGR
  • MENA MTDC Country Analysis
  • KSA colocation market overview - as of Q2 2018
  • KSA Colocation: the Riyadh-Jeddah-Dammam nexus
  • KSA colocation market position - as of Q2 2018*
  • KSA MTDC colocation - Racks
  • KSA MTDC colocation - gross power - based on focus of the facility
  • KSA - colocation - Share of rack supply by provider - 2018 F*
  • KSA - Share of rack supply by provider type - 2018 F vs. 2020 F*
  • Saudi Arabia: Market Outlook: 2017-20 CAGR
  • UAE colocation market overview - as of Q2 2018
  • UAE Colocation: Built around Dubai
  • UAE colocation market position - as of Q2 2018*
  • UAE MTDC colocation - Racks
  • UAE MTDC colocation - gross power - based on focus of the facility
  • UAE colocation - Share of rack supply by provider - 2018 F
  • UAE Share of rack supply by provider type - 2018 F vs. 2020 F
  • UAE: Market Outlook: 2017-20 CAGR
Note: Product cover images may vary from those shown
3 of 3

Loading
LOADING...

4 of 3
  • Alibaba
  • Amazon (AWS)
  • Dataxion
  • eHost Data Fort
  • EO Datacenter
  • Equinix
  • Etisalat
  • Etix Everywhere
  • Google
  • GPX
  • Gulf Data Hub
  • IBM
  • Inwi
  • ITC Saudi Arabia
  • Khazna
  • Maroc Telecom
  • Medasys
  • Microsoft
  • Mobily
  • N+One
  • NourNet
  • NxTVN
  • Omantel
  • Ooredoo
  • Oracle
  • Raya Data Center
  • STC
  • Telecom Egypt
  • Tunisie Telecom
Note: Product cover images may vary from those shown
Adroll
adroll