- Sept. 13, 2023
-- According to RationalStat's analysis, the Middle East & North Africa (MENA) data center was estimated at US$ 3.4 billion in 2022 and is expected to reach US$ 10.4 billion by 2028, growing at a CAGR of 20.4% from 2022 to 2028.Notable Takeaways from the MENA Data Center Market:
Costs and Pricings of Data Center
- Globally, the amount spent by customers on infrastructure for data centers was predicted to be around US$200 billion in
- MENA data center expenditures which includes server, networking equipment and storage, to reach the estimated US$5-6 billion, increasing by 3-5% over the previous year.
- RationalStat estimates data center spending to be around 6-8%of total ICT investment in MENA. In 2021, overall ICT investment on Saudi Arabia was estimated to surpass US$ 38 billion. The United Arab Emirates' ICT spending is projected to be at US$ 25 billion by 2021.
The cost of the data center varies considerably depending upon the location and labor. Backup power installations are also added (for example, industrial power battery backup and diesel generator). On network connectivity, the end user needs multiple internet providers and dedicated fiber optic connections. A mile of fiber optic connection can cost up to US$ 250,000.Challenges impacting the growth of data centers across the region:
- Cybercrime and fraudulent activities
- Migration from the pre-established Legacy system leads to downtime and lower profitability for a period
- GCC: The GCC data center market is estimated at US$ 1.362.6 million in 2022 and is expected to reach US$ 5,238.3 million by 2028, registering a CAGR of 20.8% during 2022-2028. The data center market is primarily driven by increasing investment and the growing cloud computing market. The cloud market is becoming more competitive in the region, especially in the UAE. The increasing adoption of cloud computing services is leading to the growth of retail and wholesale colocation services in the region.
- Turkey:The market for data centers in Turkey is driven by the development of facilities and soaring demand for cloud computing solutions. Istanbul is one of the major data center markets in Turkey and other Middle Eastern countries.
Source: https://store.rationalstat.com/store/middle-east-north-africa-data-center-market-analysis-forecast/About RationalStat LLC
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