Market Size of Middle East Data Center Construction Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.20 Billion |
| Market Size (2030) | USD 15.90 Billion |
| CAGR (2024 - 2030) | 24.85 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Middle East Data Center Construction Market Analysis
The Middle East Data Center Construction Market size is estimated at USD 4.20 billion in 2024, and is expected to reach USD 15.90 billion by 2030, growing at a CAGR of 24.85% during the forecast period (2024-2030).
In the coming years, the Middle East region is expected to increase its investment in the data center market. Several factors are facilitating the expansion of data centers in the area. The smart city ambitions of the governments in the region are driving a shift in how modern communities are built. Cities of the future, supported by digital technologies, are expected to generate massive amounts of data. It is critical to optimize data capture, storage, and processing.
- The upcoming IT load capacity in the region is expected to reach 3,530 MW by 2030, which is projected to positively impact the demand for data center racks during the forecast period.
- The region's construction of raised floor area is expected to increase by 12.6 million sq. ft by 2030.
- The region's total number of racks to be installed is expected to reach 380k units by 2029. Saudi Arabia is expected to house the maximum number of racks.
- There are close to 29 submarine cable systems connecting the Middle East, and many are under construction. One such submarine cable that is estimated to start service in 2025 is India Europe Xpress (IEX), which stretches over 9,775 kilometers with a landing point in NEOM, Saudi Arabia, Yanbu, Saudi Arabia, and Salalah, Oman.
Middle East Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The Middle East data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power backup solution (UPS, generators), service – design & consulting, integration, support & maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, and other mechanical infrastructure)), and general construction)), tier type (tier 1 and 2, tier 3, and tier 4), end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end user), and geography. The market sizes and forecasts are provided in USD value for all the above segments.
| Market Segmentation - By Infrastructure | ||||||||||||||||||||
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| General Construction |
| Market Segmentation - By Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Market Segmentation - By End User | |
| Banking, Financial Services, and Insurance | |
| IT and Telecommunications | |
| Government and Defense | |
| Healthcare | |
| Other End Users |
| Market Segmentation - By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Israel | |
| Qatar | |
| Oman |
Middle East Data Center Construction Market Size Summary
The Middle East data center construction market is poised for significant growth, driven by the region's increasing digital transformation initiatives and the rising demand for advanced IT infrastructure. The market is experiencing a surge in investment as countries like the United Arab Emirates, Saudi Arabia, and Israel focus on developing smart cities and enhancing their digital economies. The proliferation of 5G networks and the subsequent demand for low-latency data processing are further propelling the need for localized data centers. The region's strategic location, coupled with its robust fiber broadband network, makes it an attractive hub for data center investments, with the UAE leading the charge. The market is characterized by a fragmented landscape with key players such as Delta Electronics, Future Digital Data Systems, and STULZ GMBH actively participating in the expansion efforts.
The demand for data centers in the Middle East is also fueled by the growing need for data sovereignty and the optimization of data capture, storage, and processing capabilities. The banking, financial services, and insurance sectors, along with cloud, telecom, and e-commerce industries, are expected to contribute significantly to the market's expansion. Initiatives like Saudi Arabia's ambitious strategy to establish a nationwide network of large-scale data centers and Qatar's focus on advanced manufacturing technologies underscore the region's commitment to enhancing its data infrastructure. Additionally, the construction of submarine cable systems and the establishment of new data centers, such as those by Al Moammar Information Systems and Khazna Data Centers, are set to create further opportunities for market vendors, reinforcing the Middle East's position as a burgeoning data center market.
Middle East Data Center Construction Market Size - Table of Contents
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1. MARKET SEGMENTATION
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1.1 Market Segmentation - By Infrastructure
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1.1.1 Market Segmentation - By Electrical Infrastructure
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1.1.1.1 Power Distribution Solution
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1.1.1.1.1 PDU - Basic & Smart - Metered & Switched Solutions
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1.1.1.1.2 Transfer Switches
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1.1.1.1.2.1 Static
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1.1.1.1.2.2 Automatic (ATS)
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1.1.1.1.3 Switchgear
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1.1.1.1.3.1 Low-Voltage
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1.1.1.1.3.2 Medium-Voltage
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1.1.1.1.4 Power Panels and Components
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1.1.1.1.5 Other Power Distribution Solutions
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1.1.1.2 Power Backup Solutions
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1.1.1.2.1 UPS
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1.1.1.2.2 Generators
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1.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance
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1.1.2 Market Segmentation - By Mechanical Infrastructure
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1.1.2.1 Cooling Systems
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1.1.2.1.1 Immersion Cooling
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1.1.2.1.2 Direct-To-Chip Cooling
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1.1.2.1.3 Rear Door Heat Exchanger
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1.1.2.1.4 In-Row and In-Rack Cooling
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1.1.2.2 Racks
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1.1.2.3 Other Mechanical Infrastructure
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1.1.3 General Construction
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1.2 Market Segmentation - By Tier Type
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1.2.1 Tier 1 and 2
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1.2.2 Tier 3
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1.2.3 Tier 4
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1.3 Market Segmentation - By End User
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1.3.1 Banking, Financial Services, and Insurance
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1.3.2 IT and Telecommunications
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1.3.3 Government and Defense
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1.3.4 Healthcare
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1.3.5 Other End Users
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1.4 Market Segmentation - By Country
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1.4.1 United Arab Emirates
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1.4.2 Saudi Arabia
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1.4.3 Israel
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1.4.4 Qatar
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1.4.5 Oman
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Middle East Data Center Construction Market Size FAQs
How big is the Middle East Data Center Construction Market?
The Middle East Data Center Construction Market size is expected to reach USD 4.20 billion in 2024 and grow at a CAGR of 24.85% to reach USD 15.90 billion by 2030.
What is the current Middle East Data Center Construction Market size?
In 2024, the Middle East Data Center Construction Market size is expected to reach USD 4.20 billion.
