Middle East & Africa Data Center Equipment Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Middle East & Africa data center equipment market size is expected to reach US$ 19,325.96 million by 2031 from US$ 8,131.97 million in 2024. The market is estimated to record a CAGR of 13.0% from 2025 to 2031.

Executive Summary and Middle East & Africa Data Center Equipment Market Analysis:

The Middle East & Africa data center equipment market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Middle East & Africa. According to the Asia Cloud Computing Association in July 2024, data centers are growing quickly across APAC, with projections showing strong market growth. 

The data center industry in the Middle East & Africa has seen considerable growth in both advanced and developing economies, driven by the increasing willingness of companies to invest in new data storage and deployment infrastructure. For instance, according to the Cushman & Wakefield report, India's data center capacity across the top seven cities currently stands at 977 MW. The country's data center capacity is expected to grow significantly, with an additional 1.03 GW under construction by 2028. Moreover, plans for further expansion of 1.29 GW would bring India's total projected data center capacity to 3.29 GW by 2028.

Moreover, the launch of new data centers is contributing to the Middle East & Africa data center equipment market. A few recent developments are mentioned below:

• In February 2025, Colt Data Centre Services (Colt DCS), a leading global provider of hyperscale and large enterprise data center solutions, announced the launch of its new hyperscale data center, Inzai 4, in Tokyo, Japan.

• In January 2025, Doma Infrastructure Group (DIG) announced plans for a 50MW to 60MW data center in West Sydney, Australia.

Thus, the substantial growth in the data center industry will propel the Middle East & Africa data center equipment market by boosting the demand for advanced infrastructure and equipment, including servers, cooling systems, and power management solutions.

Middle East & Africa Data Center Equipment Market: Strategic Insights

Middle East & Africa Data Center Equipment Market Segmentation Analysis:

Key segments that contributed to the derivation of the Middle East & Africa data center equipment market analysis are equipment type and tier type.

• By equipment type, the Middle East & Africa data center equipment market is segmented into servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. The servers segment held the largest share of the market in 2024.

• By tier type, the Middle East & Africa data center equipment market is segmented into tier 3, tier 4, tier 1, and tier 2. The tier 3 segment held the largest share of the market in 2024.

Middle East & Africa Data Center Equipment Market Players Density: Understanding Its Impact on Business Dynamics

The Middle East & Africa Data Center Equipment Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Middle East & Africa Data Center Equipment Market Outlook

ARM servers are computers that use processors based on the ARM architecture instead of the x86 architecture, which has been the dominant design for servers. ARM architectures provide a range of benefits, including improved energy efficiency. ARM servers are reshaping how businesses think about performance, power efficiency, and cost. ARM chips are designed with a focus on low power consumption, which translates into lower energy costs for data centers. As energy expenses continue to be one of the largest operational costs for data center operators, the ability to reduce power usage without compromising performance is a significant advantage. This makes ARM-based servers especially appealing for cloud providers and enterprises looking to optimize their energy usage, reduce their carbon footprint, and ultimately lower their operational expenses. For instance, according to forecasts from Wells Fargo, ARM server shipments are forecast to skyrocket from 7.1% of shipments in 2023 to 22% of shipments by 2027.

As data centers increasingly cater to specialized workloads, such as machine learning, artificial intelligence, and edge computing, companies are leveraging ARM's lightweight, energy-efficient design. With their advantages in power efficiency, cost, and scalability, ARM-based servers are poised to play an increasingly important role in modern data centers. Thus, the growing interest in ARM servers is expected to be a significant trend in the data center equipment market.

Middle East & Africa Data Center Equipment Market Country Insights

Based on country, the Middle East & Africa data center equipment market comprises Saudi Arabia, the UAE, South Africa, and the Rest of Middle East & Africa. Saudi Arabia held the largest share in 2024.

Saudi Arabia is anticipated to draw over US$ 15 billion in data center investments by 2030, with the goal of elevating its installed capacity from over 300 MW to ~1,300 MW by 2030. This surge in investment has garnered the attention of hyper scalers, proactively advancing their commitments. Amazon, Microsoft, Oracle, and Huawei have unveiled substantial initiatives in Saudi Arabia, collectively accounting for ~US$ 10 billion in investment. Additionally, this significant influx of investment in data center infrastructure aligns with the growing adoption of data center equipment to ensure optimal operational efficiency in Saudi Arabia's evolving data center landscape.

Middle East & Africa Data Center Equipment Market Company Profiles

Some of the key players operating in the market include ABB Ltd, Legrand SA, Schneider Electric SE, Rittal GmbH and Co KG, Eaton Corp Plc, Dell Technologies Inc, Honeywell International Inc, Vertiv Group Corp., Delta Electronics Inc and Cisco Systems Inc., among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Middle East & Africa Data Center Equipment Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise