At 18.6% CAGR, Middle East & Africa Hyperscale Data Center Market is Projected to be Worth US$ 6,811.48 Million by 2031, says The Insights Partners

According to The Insights Partners research, the Middle East & Africa hyperscale data center market was valued at US$ 1,737.89 million in 2023 and is expected to reach US$ 6,811.48 million by 2031, registering a CAGR of 18.6% from 2023 to 2031. Increasing demand for sustainable hyperscale data centers and increasing deployment of 5G services are among the critical factors attributed to drive the Middle East & Africa hyperscale data center market growth.

As the digital transformation continues, the demand for data processing power rises, highlighting the problem of reconciling technical innovation and environmental responsibility. Businesses are under increased pressure to meet sustainability due to stricter environmental regulations, investor interest in green practices for fewer risks and higher profits, and consumer preference for sustainable products. Furthermore, government initiatives are increasingly focusing on promoting sustainable data centers. For instance, the United Nations developed a plan to reduce the degree and rate at which global temperatures rise and reach net-zero emissions by 2050. This plan puts pressure on countries worldwide to develop and implement standards that eliminate greenhouse gas emissions by a specific timeframe in order to prevent a 1.5°C increase in global temperature. This plan promotes the use of solar and wind energy to replace coal, gas, and oil. The 2023 United Nations Climate Change Conference also announced the Global Cooling Pledge. This pledge aims to reduce cooling-related emissions by 68% by 2050, boosting cooling system efficiency and expanding the usage of natural refrigerants. Therefore, with sustainability initiatives in place, hyperscale data centers are likely to bring new trends in the market, as these are beneficial in performing environmentally friendly cloud operations, which can aid in achieving the goal of reaching net zero emissions within the stipulated timeline.

On the contrary, the high initial and maintenance cost hamper the growth of Middle East & Africa hyperscale data center market.

Based on solutions, the Middle East & Africa hyperscale data center market is segmented into storage, networking, server, security, and others. The storage segment held 32.4% market share in 2023, amassing US$ 563.86 million. It is projected to garner US$ 2,261.44 million by 2031 to register 19.0% CAGR during 2023–2031.

In terms of end user, the Middle East & Africa hyperscale data center market is segmented into colocation providers, enterprises, and cloud providers. The colocation providers segment held 45.6% share of Middle East & Africa hyperscale data center market in 2023, amassing US$ 792.33 million. It is anticipated to garner US$ 3,142.58 million by 2031 to expand at 18.8% CAGR during 2023–2031.

By industry vertical, the Middle East & Africa hyperscale data center market is segmented into BFSI, telecom and IT, government and public, media and entertainment, and others. The BFSI segment held 33.6% market share in 2023, amassing US$ 584.10 million. It is projected to garner US$ 2,344.21 million by 2031 to register 19.0% CAGR during 2023–2031.

By country, the Middle East & Africa hyperscale data center market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Our regional analysis states that the Rest of Middle East & Africa captured 48.7% share of Middle East & Africa hyperscale data center market in 2023. It was assessed at US$ 846.18 million in 2023 and is likely to hit US$ 3,237.74 million by 2031, registering a CAGR of 18.3% during 2023–2031.

Key players operating in the hyperscale data center market are ABB Ltd; Dell Technologies Inc; EdgeConnex Inc.; Cisco Systems Inc; International Business Machines Corp; Fujitsu Ltd; Hewlett Packard Enterprise Development LP; Intel Corp; Juniper Networks Inc; and Schneider Electric SE, among others.

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