Middle East & Africa Data Storage Market Poised for Explosive Growth, Surging to USD 27.2 Billion by 2035

The Middle East & Africa (MEA) data storage market is on a trajectory of unprecedented expansion, projected to skyrocket from USD 8 billion in 2025 to a staggering USD 27.2 billion by 2035, exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 13%. This explosive growth is directly linked to multi-billion-dollar infrastructure pledges and a profound digital transformation sweeping across the region, as highlighted by Future Market Insights. Landmark announcements at events like LEAP 2025, including Equinix's commitment to a USD 1 billion, 100 MW Riyadh facility and Amazon Web Services' unveiling of a USD 5.3 billion Saudi cloud region slated for 2026, underscore the immense investment pouring into the sector.

A significant driver of this growth is the increasing focus on green-finance covenants, which are actively reshaping power and cooling choices for data centers, as exemplified by DataVolt's USD 5 billion deal to develop a 1.5 GW net-zero campus in NEOM's Oxagon. Beyond hyperscale investments, edge expansion is equally pivotal. IFC's USD 100 million financing for Raxio Group will seed carrier-neutral sites from Ethiopia to Angola, bringing latency-sensitive fintech and gaming workloads closer to users and reducing reliance on distant European hubs. The demand for sub-millisecond access times, driven by the rollout of 5G, IoT, and AI analytics, is accelerating the adoption of flash arrays and 25-100 GbE fabrics. Concurrently, regulators from Saudi Arabia to South Africa are tightening audits on data residency and resilience, rewarding providers that pair ISO 27001 controls with sovereign-cloud zones, further stimulating local data storage solutions.

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Hyperscaler Momentum and Enterprise Demand Fueling Expansion

The momentum of hyperscalers is sharpening with significant investments, such as Microsoft's additional USD 300 million AI-cloud investment in South Africa announced in March 2025, and Oracle's pledge in January 2025 to add eight new cloud regions, including expanded capacity in Johannesburg. Abu-Dhabi-based G42 Cloud's 2023 alliance with VAST Data is already rolling out ultra-dense, all-flash object stores that dramatically slash power consumption per terabyte by 60%. Future Market Insights forecasts that MEA enterprise-storage deployments will triple by 2030, demanding approximately 8 GW of renewable-backed power to meet the escalating AI, IoT, and sovereign-compliance workloads from enterprises, attracting significant opportunities for market players.

The market's growth trajectory is consistently strong, with a projected CAGR of 13.6% in the first half of 2025, demonstrating an acceleration in investment and deployment.

Enterprise Storage and Telecom & IT Sectors Lead Investment

Within the MEA data storage market, the enterprise storage segment is projected to hold a dominant position, accounting for approximately 60.2% of the market share in 2025. This leadership is driven by the region's ongoing digital transformation initiatives, including the widespread adoption of cloud computing and big data analytics, coupled with stringent data control and safety regulations in countries like Saudi Arabia and the UAE. Major technology companies like Dell, Hewlett Packard Enterprise (HPE), and Huawei are making significant investments in the region, offering advanced storage options tailored to meet the needs of MEA businesses.

The telecom and IT industry segment is expected to account for approximately 28.4% of the MEA data storage market in 2025. The extensive rollout of 5G networks in Gulf Cooperation Council (GCC) countries and the proliferation of smart city projects have dramatically increased the need for scalable and reliable storage solutions. Telecom companies are heavily investing in cutting-edge storage systems to manage the surge in data traffic and support essential cloud services.

Key Highlights: Investments, Cybersecurity, and Talent Development

The market's growth is strongly linked to rising investments in cloud services, smart city progress, and 5G network rollouts, all contributing to a massive increase in data creation. Major tech firms like Amazon Web Services (AWS) and Oracle are expanding their data storage footprints across the region. Cybersecurity concerns are also a significant driver, pushing industries to adopt robust data protection solutions, particularly in the financial services sector, where encrypted cloud storage is gaining traction. Government initiatives like Saudi Arabia's Vision 2030 and the UAE's National Cybersecurity Strategy are further propelling investments in secure data storage.

While the rapid growth presents immense opportunities, the region also faces a lack of skilled labor to manage and maintain complex data systems. This challenge is being addressed through initiatives like Microsoft Cloud Society, which has trained over 200,000 local members in cloud and AI technologies, and government programs aimed at digital skill development. The rise of decentralized storage solutions in the financial and telecom sectors, driven by digital transformation and 5G deployments, is further boosting the demand for advanced data storage systems that can handle massive data volumes and offer reliable, quick services.

Competitive Landscape: Global Players Vie for Regional Dominance

Competition in the MEA data storage market is fierce, fueled by rapid digital transformation and increasing adoption of cloud services and data technologies. The market is dynamic, with high demand for scalable, secure, and cost-effective storage solutions. Key factors shaping the industry include the rising adoption of cloud computing and stricter regulations around data sovereignty and safety. Providers are compelled to offer unique solutions for various verticals, from telecom to finance and healthcare.

Tier 1 companies, including Western Digital, Dell EMC, and Microsoft Corporation, hold a substantial 45% to 50% market share, driving global expansion through partnerships and large-scale acquisitions. Tier 2 vendors like NetApp Inc., HPE MEA, and IBM Corporation account for 15% to 20%, focusing on enhancing their solution capabilities. Tier 3 companies, such as Hitachi Data Systems and Micron Technology, represent 30% to 35%, concentrating on market expansion and end-user specific solutions. Recent developments, such as Hitachi Vantara's partnership with Cisco Systems in June 2023 and Dell's launch of Dell APEX data storage services in South Africa, underscore the continuous innovation and strategic collaborations defining this rapidly expanding market. As the MEA region solidifies its position as a globally integrated data-supply node, the data storage market is set for continued and transformative growth.

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