The GCC data center market size was valued at USD 3.48 billion in 2024 and is expected to reach USD 9.49 billion by 2030, growing at a CAGR of 18.19%.

The Middle East Data Center Market report segments the industry into Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Absorption (Non-Utilized, Utilized), and Country (Israel, Saudi Arabia, United Arab Emirates, Rest of Middle East). Get five years of historical data along with five-year market forecasts.

The Middle East data center market size was valued at $5.57 billion in 2023 and is expected to grow to $9.61 billion by 2029, at a CAGR of 9.52% from 2023 to 2029.

In 2023, the Middle East Data Center Market value is projected to surge to $ 6.29 billion by 2030 at a CAGR of 12.6% from 2024 to 2030.

GCC data centers: 106 operational facilities and 77 upcoming data centers in GCC region. List of Colocation and Cloud data facilities in the GCC region.

The Middle East Data Center Power Market is Segmented by Component (Electrical Solutions and Services), Data Center Type (Hyperscaler/Cloud Service Providers, Colocation Providers, and More), Data Center Size (Small Size Data Centers, Medium Size Data Centers, Large Size Data Centers and More), Tier Type (Tier I and II, Tier III, Tier IV) and by Country. The Market Forecasts are Provided in Terms of Value (USD)

Middle East Data Center Construction Market is expected to grow during 2025-2031

The green data center market in the Middle East and Africa was expected to be worth **** billion U.S. dollars in 2023, a marginal increase on the previous year. Stronger growth is forecast over the coming years, with the market set to be worth **** billion U.S. dollars by 2030.Further information on the green data center market can be found here.

The Middle East data center construction market size by investment was valued at USD 1.93 billion in 2024 and is expected to reach USD 6.98 billion by 2030, growing at a CAGR of 23.91% during the forecast period.

The Middle East and Africa data center colocation market by investment was valued at USD 2.98 billion in 2023 and is expected to reach USD 5.74 billion by 2029, growing at a CAGR of 11.55%

The Middle East and Africa Hyper-scale Data Center market will be USD 2830.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031. The market is foreseen to reach USD 4528.7 million by 2031 owing to extensive development in residential, commercial, and industrial sectors.

The Middle East and Africa data center market size was valued at USD 8.63 billion in 2024 and is expected to reach USD 19.89 billion by 2030, growing at a CAGR of 14.92% during the forecast period.

The Middle East Data Center Power market is experiencing robust growth, projected to reach a market size of $0.58 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 12.70% from 2025 to 2033. This expansion is fueled by several key drivers. The region's burgeoning digital economy, driven by increasing internet and mobile penetration, necessitates significant investment in data center infrastructure. Government initiatives promoting digital transformation and smart city projects are further stimulating demand. Furthermore, the rise of cloud computing and the increasing adoption of big data analytics are contributing to the need for reliable and scalable power solutions within data centers. The key segments within this market include power infrastructure solutions (UPS systems, generators, power distribution solutions), services, and end-users (IT and telecommunications, BFSI, government, media and entertainment). Major players like ABB, Caterpillar, Cummins, Eaton, and Schneider Electric are actively competing in this dynamic market, offering a range of advanced power solutions tailored to the specific needs of Middle Eastern data centers. Significant growth is anticipated across the forecast period, driven by continued expansion of the digital economy and ongoing government support for technological advancement. Specific growth areas within the market include the adoption of energy-efficient power solutions, the increasing demand for higher power density in data centers, and the growing adoption of renewable energy sources to power these facilities. The Middle East's unique geographic and climatic conditions necessitate robust and reliable power infrastructure, presenting opportunities for companies offering resilient and adaptable solutions. While regulatory frameworks and potential infrastructure limitations may pose challenges, the overall market outlook remains positive, with considerable potential for further expansion driven by sustained digital transformation across the region. Recent developments include: June 2023 - Legrand introduced the industry’s next generation of intelligent rack power distribution units (PDUs). The server technology PRO4X and Raritan PX4 rack PDUs are poised to redefine power management in data centers with exceptional visibility, cutting-edge hardware, and enhanced security., May 2023 - Eaton introduced a G3 Universal Input Rack PDU with dynamic C39 outlets, adaptable to a wide variety of plugs, input cords, and voltage requirements. According to Eaton, the G3 UPDU adds innovative features to meet the most diverse data center rack power needs by accommodating rack equipment with a broad range of power requirements.. Key drivers for this market are: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Potential restraints include: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Notable trends are: IT and Telecom to Hold Significant Share.

The Middle East Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, Tower Server), by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users), and by Geography (Saudi Arabia, United Arab Emirates, Israel, and Rest of Middle East). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Middle East and Africa Data Center Server market size is USD 1230.84 million in 2024 and will expand at a compound annual growth rate (CAGR) of 10.3% from 2024 to 2031.

The Middle East & Africa Data Center Market is experiencing growth driven by the increasing demand for online gaming.

The Middle East Data Center Cooling Market Report is Segmented Into Cooling Technology (Air-Based Cooling (CRAH, Chillers and Economizers, and Cooling Towers), Liquid-Based Cooling (Immersion Cooling and Direct-To-Chip Cooling), and End-User Industry (IT and Telecommunication, BFSI, Government, and Media and Entertainment), and Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The global data center market size reached USD 213.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 494.5 Billion by 2033, exhibiting a growth rate (CAGR) of 9.29% during 2025-2033. The market demand for cloud services, data storage solutions, and edge computing is the primary driver of growth. Moreover, the market forecast indicates constant growth, supported by amplifying digital transformation, IoT adoption, and the expansion of energy-efficient and sustainable data center infrastructure globally.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, type, enterprise size, and end user.

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Data Center Market Size 2025-2029

The data center market size is forecast to increase by USD 535.6 billion, at a CAGR of 15.6% between 2024 and 2029.

The market is experiencing significant growth and transformation, driven by the increasing adoption of multi-cloud architectures and network upgrades. Businesses are recognizing the benefits of distributing their data across multiple cloud environments to improve agility, reduce costs, and enhance performance. This trend is leading to a surge in demand for advanced data center infrastructure and services. Another key driver is the implementation of Artificial Intelligence (AI) in data centers. AI is revolutionizing various industries by enabling automation, predictive analytics, and real-time insights. Data centers are no exception, as AI is being used to optimize energy consumption, improve security, and enhance operational efficiency.
However, this technological advancement also presents challenges. Cybersecurity issues are becoming increasingly sophisticated, with data centers being prime targets for cyberattacks. Ensuring data security and privacy is a major concern for organizations, necessitating significant investments in cybersecurity measures. Companies must navigate these challenges while capitalizing on the opportunities presented by the evolving data center landscape. To remain competitive, they must invest in advanced infrastructure, adopt innovative technologies, and prioritize cybersecurity to meet the demands of their customers and stakeholders.

What will be the Size of the Data Center Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the ever-increasing demand for digital transformation and IT infrastructure growth across various sectors. HVAC systems, a critical component of data center operations, are continually advancing with precision cooling technologies to ensure optimal performance and energy efficiency. Modular data centers offer flexibility and scalability, while IT asset management solutions enable effective lifecycle management. Data center optimization strategies, including virtualization software and capacity planning, enhance operational efficiency and reduce costs. Surveillance cameras and access control systems ensure physical security, while fault tolerance and high availability ensure business continuity. Renewable energy integration and green data center initiatives prioritize sustainability.

Data center construction projects incorporate advanced designs and remote monitoring capabilities, while disaster recovery solutions safeguard against potential downtime. Support contracts and service-level agreements provide essential maintenance and backup systems. Network switches and load balancers facilitate seamless connectivity, and edge data centers extend network reach. Fire suppression systems and CRAC units maintain critical environments, while server virtualization and disaster recovery strategies ensure business continuity. Risk management and IT infrastructure strategies continue to adapt to the dynamic market landscape, with a focus on energy efficiency, network security, and data center design. The integration of virtual machines (VMs) and cloud computing further expands the market's potential.

Overall, the market remains a dynamic and evolving landscape, with ongoing advancements and applications across various industries.

How is this Data Center Industry segmented?

The data center industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Security solutions


End-user

  BFSI
  Energy
  IT
  Others


Design

  Traditional
  Containerized
  Modular


Data Center Size

  Small and Medium Data Centers
  Large Data Centers


Tier Type

  Tier 1 and 2
  Tier 3
  Tier 4


Type

  Enterprise Data Centers
  Colocation Data Centers
  Cloud Data Centers
  Managed Data Centers
  Edge Data Centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period.

The IT infrastructure of a data center encompasses all the necessary hardware, software, and solutions for establishing and expanding a data center. This infrastructure comprises server infrastructure, storage infrastr

The Middle East and North Africa data center market was valued at USD 5.04 billion in 2022 and is expected to reach USD 8.38 billion by 2028, growing at a CAGR of 8.84%.