Middle East Data Center Rack Market Size (2024 - 2029)

The Middle East data center rack market is experiencing significant growth, with projections indicating a substantial increase in market size over the coming years. This expansion is driven by the rising IT load capacity and the construction of additional raised floor areas across the region. The total number of racks installed is also expected to rise dramatically, with Saudi Arabia anticipated to lead in rack installations. The development of submarine cable systems further supports this growth, enhancing connectivity and infrastructure capabilities in the region.

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Market Size of Middle East Data Center Rack Industry

Middle East Data Center Rack Market Summary
Study Period 2024 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period
CAGR (2024 - 2030) 16.90 %
Market Concentration High

Major Players

Middle East Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Middle East Data Center Rack Market Analysis

The Middle East Data Center Rack Market is expected to register a CAGR of 16.90% during the forecast period.

The Middle East data center rack market reached value of around USD 2.1 million in previous year and it is further projected to grow and register a CAGR of 14.74%.

  • The upcoming IT load capacity of the Middle East data center market is expected to reach 2,059.5 MW by 2029.
  • The region's construction of raised floor area is expected to increase 9.7 million sq. ft by 2029.
  • The region's total number of racks to be installed is expected to touch around 500,000 units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029.
  • There are close to 13 submarine cable systems connecting the Middle East, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Blue, which stretches over 4696 Kilometers with a landing point in Tel Aviv.

Middle East Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Middle Eastern data center rack market is segmented by rack size (quarter rack, half rack, and full rack), end-user industry (BFSI, IT, telecom, government, media, and entertainment), and country (Israel, Saudi Arabia, United Arab Emirates and Rest of Middle East). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

By Rack Size
Quarter Rack
Half Rack
Full Rack
By End User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End Users
By Country
Israel
Saudi Arabia
United Arab Emirates
Rest of Middle East
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Middle East Data Center Rack Market Size Summary

The Middle East data center rack market is poised for significant growth, driven by the region's increasing digital transformation and infrastructure development. The market is experiencing a surge in demand due to the expansion of IT load capacity and the construction of raised floor areas, with Saudi Arabia expected to lead in the number of racks installed. The region's strategic location, supported by numerous submarine cable systems, enhances its connectivity and data transfer capabilities. Key industries such as cloud computing, telecommunications, e-commerce, and BFSI are major contributors to the market's expansion, with initiatives like Industry 4.0 and the adoption of 5G networks further fueling the need for advanced data center infrastructure.

Investment in data centers is expected to rise as Middle Eastern countries pursue smart city projects and strive to optimize data management. The UAE stands out as a leading hub for data center investments, benefiting from its robust fiber broadband network and favorable regulatory environment. Saudi Arabia's ambitious strategy to develop a nationwide network of large-scale data centers underscores the region's commitment to enhancing its digital economy. The market is characterized by the presence of major players such as Rittal GMBH & Co.KG, Schneider Electric SE, Legrand SA, Dell Inc., and Hewlett Packard Enterprise, who are actively innovating to meet the growing demands of the industry.

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Middle East Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Deployment of Data Center Facilities

      2. 1.2.2 Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers

      3. 1.2.3 BFSI Sector Expected to Hold a Significant Share

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Utilization of Blade Servers

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 By End User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End Users

    3. 2.3 By Country

      1. 2.3.1 Israel

      2. 2.3.2 Saudi Arabia

      3. 2.3.3 United Arab Emirates

      4. 2.3.4 Rest of Middle East

Middle East Data Center Rack Market Size FAQs

The Middle East Data Center Rack Market is projected to register a CAGR of 16.90% during the forecast period (2024-2030)

Rittal GMBH & Co.KG, Schneider Electric SE, Legrand SA, Dell Inc. and Hewlett Packard Enterprise are the major companies operating in the Middle East Data Center Rack Market.

Middle East Data Center Rack Market Report Snapshots

Middle East Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)