Middle East & Africa Hyperscale Data Center Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The hyperscale data center market in the Middle East and Africa (MEA) was valued at approximately USD 1.74 billion in 2023 and is projected to grow to around USD 6.81 billion by 2031, reflecting a compound annual growth rate (CAGR) of 18.6% during the forecast period.

Impact of 5G Deployment on the Hyperscale Data Center Market

The rollout of 5G technology is a significant driver for the growth of the hyperscale data center market in the MEA region. One of the key benefits of 5G is its capacity to support a diverse array of Internet of Things (IoT) applications and services. With its superior data speeds and reduced latency compared to 4G and earlier networks, 5G is expected to lead to a substantial increase in data traffic. This surge in data necessitates the establishment of hyperscale data centers, which provide efficient, scalable, and secure solutions for data storage, processing, and distribution across various sectors. Consequently, many companies are investing in the construction of new hyperscale data centers to meet this growing demand.

Overview of the MEA Hyperscale Data Center Market

The MEA hyperscale data center market is primarily divided into key regions: Saudi Arabia, the UAE, South Africa, and the Rest of MEA. The Middle East is experiencing rapid development, with technologies such as IoT, artificial intelligence (AI), and big data playing crucial roles in its digital transformation. The increasing adoption of 5G technology is further driving the need for enhanced data storage capabilities, thereby propelling market growth.

A notable example of this trend is the UAE Central Bank's initiative launched in February 2023, aimed at advancing digital transformation within the financial services sector. This initiative includes the introduction of open finance, a new digital currency, a domestic card system, an instant payment platform, a financial cloud, and supervisory technologies. Such projects are expected to enhance the efficiency of cross-border payments and foster innovation in domestic transactions, ultimately increasing the demand for data processing and storage solutions in the region.

Market Segmentation Analysis

The hyperscale data center market in the MEA can be segmented based on solutions, end users, industry verticals, and countries:

1. Solutions: The market is categorized into storage, networking, servers, security, and other solutions. In 2023, the storage segment held the largest share of the market.

2. End Users: The market is divided into colocation providers, enterprises, and cloud providers. The colocation providers segment was the largest in terms of market share in 2023.

3. Industry Verticals: The market is segmented into banking, financial services, and insurance (BFSI), telecommunications and IT, government and public services, media and entertainment, and others. The BFSI sector dominated the market share in 2023.

4. Countries: The market is further segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The Rest of MEA accounted for the largest share of the market in 2023.

Key Players in the Market

Several prominent companies are active in the hyperscale data center market, including:

• ABB Ltd
• Dell Technologies Inc
• EdgeConnex Inc.
• Cisco Systems Inc
• International Business Machines Corp (IBM)
• Fujitsu Ltd
• Hewlett Packard Enterprise Development LP
• Intel Corp
• Juniper Networks Inc
• Schneider Electric SE

These companies are at the forefront of providing innovative solutions and services that cater to the growing demands of hyperscale data centers in the MEA region.

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