Global Data Center Market to Surge, MEA and China Lead with Billions in Investments by 2030

Middle East & Africa Data Center Market (2025-2030) The Middle East and Africa (MEA) data center market is poised for significant growth, projected to reach USD 19.89 billion by 2030, from its 2024 valuation of USD 8.63 billion, rising at a Compound Annual Growth Rate (CAGR) of 14.93%. This rapid expansion is fueled by a combination of governmental initiatives, the push for smart city developments, and the entry of numerous new operators. Major Players and New Entrants The market is dominated by both global and local data center operators. Prominent players include Khanzna Data Centers, Gulf Data Hub, Digital Realty, Equinix, center3 (stc), Edgnex Data Centres by DAMAC, Africa Data Centres, Raxio Data Centres, MedOne, NTT DATA, and Vantage Data Centers. These established entities are joined by new entrants such as Agility, Pure Data Centres, Qareeb Data Centres, DataVolt, Anan, NED, Techtonic, Desert Dragon Data Centers, and others, signaling a vibrant and competitive landscape. Government Support A key driver behind the market's growth is government support for digital infrastructure. For example, Kenya's Special Economic Zones (SEZs) offer extensive tax incentives, reducing corporate tax by 20% for the first decade and 15% over the subsequent ten years. These measures attract data center investments and lower operational costs. Similarly, South Africa's National Policy on Data and Cloud, introduced in 2024, aims to drive economic growth and enhance public service delivery through cloud technologies. In Nigeria, the government mandates the local storage of data for critical sectors like oil & gas, financial services, and the public sector, boosting the region's digital economy and attracting local data center investments. The alignment of these policies with global trends ensures that the MEA region remains a strategic hub for data storage and processing. Smart City Initiatives The MEA's smart city projects are another critical factor driving the data center market. Cities like Dubai, Abu Dhabi, Riyadh, Cairo, Doha, Cape Town, Muscat, and Amman prioritize data infrastructure to support technological advancements. According to the 2024 IMD Smart City Index, Dubai and Abu Dhabi rank 12th and 10th respectively, highlighting their commitment to digital innovation. The Dubai Data and Artificial Intelligence Platform, launched in September 2024 by Digital Dubai and Moro Hub, facilitates seamless data exchange and advanced analytics, aiding in better governance and digital maturity. The expansion of smart cities demands high-speed internet and robust data storage, leading to increased investment in edge data centers and High-Performance Computing (HPC). With the widespread adoption of 5G, IoT, and AI, the region is expected to see a surge in data center needs, making it an attractive market for investors. Market Segmentation The report provides a detailed geographical and infrastructural analysis of the MEA data center market, segmented by IT infrastructure, electrical and mechanical infrastructure, cooling systems, construction, and tier standards. It examines the market value, forecast period, key vendors, and new entrants, covering a wide array of regions in Africa and the Middle East. The report spans 239 pages and offers comprehensive insights into the market dynamics and future growth opportunities. China Data Center Market (2025-2030) The Chinese data center market is also experiencing significant growth, projected to reach USD 97.3 billion by 2030 from its 2024 value of USD 47.23 billion, at a CAGR of 12.8%. This growth is driven by government policies, increasing digitalization, and a strong focus on sustainability and modular data centers. Major Players and Emerging Trends Top third-party data center operators in China include China Telecom, China Mobile, China Unicom, Chayora, GDS Services, Chindata Group, Dr. Peng's Telecom and Media Group, Shanghai Atrium (athub), China International Capital Corporation (CICC), VNET Group, Kehua Data, and Sinnet. These players are supported by provincial governments offering incentives for the establishment of mega-data centers. Leading hyperscale data center companies like Alibaba, Huawei, Baidu, Tencent, China Telecom, JD.com, Bilibili, Chayora, and Kingsoft Cloud are heavily investing in the market. Colocation data center operators are witnessing a significant increase in the area used for data center development, strengthening the trend towards mega colocation facilities. Sustainability and Modular Solutions Sustainability is a crucial focus in the Chinese data center market. Operators are increasingly adopting renewable energy sources and developing carbon-free data centers to meet growing regulatory pressures. The improvement in Power Usage Effectiveness (PUE) ratios, driven by AI-driven software for data center operations, reflects a shift towards more efficient and environmentally friendly practices. Modular data centers are gaining popularity due to their flexibility and cost-effectiveness. Vendors such as Huawei, Delta Electronics, Schneider Electric, and STULZ are developing these solutions to meet rising demand. Modular data centers allow for quicker deployment and scalability, essential in a rapidly growing market. Government Strategies and Connectivity The Chinese government's strategies, including the One Belt, One Road, Network Power, and Domestic and Foreign Economic Dual Circulation, have significantly enhanced the country's connectivity infrastructure. This improved connectivity, combined with the widespread adoption of 5G, industrial internet, cloud computing, and AI, has put China's data center market on a fast growth trajectory. Investment and Market Dynamics The report offers a detailed analysis of the China data center market, including market sizing and investment in colocation, hyperscale, and enterprise data centers. It covers investments in area (thousand square feet) and power capacity (MW) across various regions, providing a transparent methodology and an in-depth study of demand and supply aspects. The vendor landscape includes key IT infrastructure providers, construction contractors, support infrastructure providers, and investors. The report's 143 pages delve into market segmentation, covering IT, electrical, mechanical infrastructure, cooling systems, and general construction. It also highlights potential opportunities, growth restraints, and industry prospects, making it a valuable resource for stakeholders. Industry Insights and Company Profiles Industry insiders laud the MEA and Chinese data center markets for their dynamic growth and innovative trends. The MEA's favorable government policies and smart city developments are seen as key factors that will catalyze continued expansion. In China, the emphasis on sustainability and modular technology, along with robust government support, is expected to drive the market forward, making it a leader in data center solutions. Companies like Digital Realty, Equinix, and Huawei are praised for their strategic investments and technological advancements. Their commitment to sustainability and efficiency, alongside the supportive regulatory environment, positions them well to capitalize on emerging opportunities. As these markets evolve, they are likely to attract further investments, fostering a global shift towards more digitized and connected societies. ResearchAndMarkets.com, a leading provider of international market research reports, emphasizes the importance of understanding the unique dynamics of each region. The detailed reports on both the MEA and China markets offer valuable insights and actionable data for investors and operators looking to navigate and capitalize on these rapidly growing markets.