Report : Middle East & Africa Data Center Construction Market Forecast to 2030 - Regional Analysis - by Types of Construction (General Construction, Electrical Design, and Mechanical Design), Tier Standards (Tier 1 & Tier 2, Tier 3, and Tier 4), and Industry Verticals (BFSI, Government, Education, Manufacturing, Retail, Transportation, Media & Entertainment, and Others)
At 6.8% CAGR, Middle East & Africa Data Center Construction Market is Projected to be Worth US$ 22,873.56 Million by 2030, says Business Market Insights
According to Business Market Insights' research, the Middle East & Africa data center construction market was valued at US$ 13,527.12 million in 2022 and is expected to reach US$ 22,873.56 million by 2030, registering a CAGR of 6.8% from 2022 to 2030. Increasing implementation of hyperscalers and colocation and growing construction of tier 4 data centers are among the critical factors attributed to the Middle East & Africa data center construction market expansion.
A hyperscale is a kind of large-scale data center that offers vast computing capabilities, often in the form of an elastic cloud platform. Organizations use them to manage and deliver extensive applications and services. The objective of hyperscalers is to expand their service offerings while maintaining better latency as well as improve availability in order to cover more ground. They face intense competition from colocation providers in addition to internal competitors. 37% of the capacity of data centers is owned by colocation providers such as Digital Realty, Equinix, CyrusOne, Chindata, and Global Switch; 32% by cloud service providers and hyperscalers; 20% by privately owned data centers; and 11% by telecoms.
Moreover, for small enterprises, constructing their data center involves huge capital. Since these enterprises have a limited budget or capital expenditure to construct a data center, the ROI is comparatively low. As a result, most of these enterprises are choosing colocation or cloud services. These companies do not require much storage space, and constructing their own data center is not feasible. Therefore, they depend on colocation or CSPs to store their data. Also, apart from the capital required to build a data center, other expenses and efforts such as maintenance and service become a burden for these companies. Moreover, the demand for colocation services and hyperscalers is leading to the rise in the construction of mega data centers as they offer economies of scale. Thus, the increasing implementation of hyperscalers and colocation is anticipated to create lucrative opportunities for the Middle East & Africa data center construction market growth during the forecast period.
On the contrary, complexities in data center infrastructure and its establishment hampers the growth of Middle East & Africa data center construction market.
Based on types of construction, the Middle East & Africa data center construction market is segmented into general construction, electrical design, and mechanical design. The electrical design segment held 48.3% share of the Middle East & Africa data center construction market in 2022, amassing US$ 6,534.15 million. It is projected to garner US$ 11,930.55 million by 2030 to expand at 7.8% CAGR during 2022-2030.
In terms of tier standards, the Middle East & Africa data center construction market is segmented into tier 1 & tier 2, tier 3, and tier 4. The tier 3 segment held 48.1% share of the Middle East & Africa data center construction market in 2022, amassing US$ 6,506.05 million. It is estimated to garner US$ 10,794.39 million by 2030 to expand at 6.5% CAGR during 2022-2030.
By industry verticals, the Middle East & Africa data center construction market is segmented into IT & telecommunication, BFSI, government, education, manufacturing, retail, transportation, media & entertainment, and others. The IT & telecommunication segment held 29.9% share of Middle East & Africa data center construction market in 2022, amassing US$ 4,050.40 million. It is predicted to garner US$ 7,545.46 million by 2030 to expand at 8.1% CAGR during 2022-2030.
Based on country, the Middle East & Africa data center construction market is categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The Rest of Middle East & Africa held 44.3% share of Middle East & Africa data center construction market in 2022, amassing US$ 5,997.92 million. It is projected to garner US$ 8,914.36 million by 2030 to expand at 5.1% CAGR during 2022-2030.
Key players operating in the Middle East & Africa data center construction market are Rittal GmbH & co KG, Schneider Electric SE, AECOM, Turner Construction Co, and Eaton Corp Plc, among others.
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