The Middle East & Africa data center construction market is set to grow at a CAGR of 8.54%, reaching $4.26 billion by 2028, driven by increasing cloud investments and renewable energy procurement.
Major global cloud service providers like Amazon Web Services, Tencent Cloud, Microsoft, Google Cloud, Alibaba Cloud, Oracle, and Huawei Technologies are actively expanding their presence in the region.
New submarine cables, such as Africa-1, 2Africa, and India Europe Xpress, enhance connectivity in the Middle East & Africa data center construction market, supporting its continuous growth.
The introduction of 5G technology in the region generates significant data, leading to increased investments in data centers due to high internet connectivity and faster processing times.
Countries like the UAE, Saudi Arabia, South Africa, and Nigeria have commercially deployed 5G networks, while others are in the planning phase, presenting opportunities for data center development.
The Middle East and Africa boast abundant solar energy resources, driving renewable energy strategies and visions. Saudi Arabia, the UAE, Bahrain, and Nigeria have ambitious plans to generate significant renewable energy capacity.
Cloud service providers such as Amazon Web Services, Google Cloud, and Microsoft Azure are expanding their infrastructure and establishing new cloud regions in the Middle East and Africa.
The UAE leads data center developments in the region, followed by Saudi Arabia, South Africa, Israel, Kenya, and Oman. The presence of smart cities further fuels data center investments.