Press release
Middle East & Africa Data Center Colocation Market Investment to Reach USD 12.88 Billion by 2031 - Arizton
The Middle East and Africa data center colocation market is expected to witness strong investment growth, increasing from approximately $3.33 billion in 2025 to nearly $12.88 billion by 2031, reflecting an addition of over $9.5 billion within six years. This indicates that investment in 2031 is expected to be almost 3.9 times higher than 2025 levels, supported by a robust CAGR of 25.32%. The rising demand is primarily driven by rapid cloud adoption, AI and machine learning workloads, data center developments, increasing digital transformation initiatives, higher internet penetration, growth in enterprise colocation requirements, and stronger government focus on digital infrastructure, smart cities, and data localization across the Middle East and Africa.
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Middle East & Africa Data Center Colocation Market Snapshot
Market Size by Investment 2031: USD 12.88 Billion
Market Size by Investment 2025: USD 3.33 Billion
CAGR - Investment (2025-2031): 25.32%
Market Size - Colocation Revenue 2031: USD 8.63 Billion
Market Size Area (2031): 3.98 million sq. feet
Power Capacity (2031): 1,014 MW
Base Year: 2025
Forecast Year: 2026-2031
Market Segments: Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography
Geographical Analysis: Middle East (UAE, Saudi Arabia, Israel, Oman, Qatar, Kuwait, Bahrain, and Other Middle Eastern Countries) and Africa (South Africa, Kenya, Nigeria, Egypt, and Other African Countries)
Investment Priorities Across the Middle East & Africa
South Africa is expected to attract approximately USD 758.1 million in data center investments by 2031. Its mature digital infrastructure, established connectivity ecosystem, and strong enterprise demand continue to make it Africa's largest investment destination, despite a lower growth rate than several emerging markets.
LEAP Riyadh 2025 continues to strengthen Saudi Arabia's position as a regional technology hub by bringing together investments in AI, cloud computing, and digital infrastructure that support future data center developments.
RailTel Corporation of India secured a USD 2.2 million contract in January 2026 to build a government data center for Ethiopia's Ministry of Foreign Affairs, reflecting growing public-sector investment in secure digital infrastructure across Africa.
Data center construction costs ranging from USD 6 million to USD 12 million per MW are making power availability, land access, infrastructure quality, and construction costs increasingly important considerations for developers and investors.
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Renewable Energy Creates New Opportunities for Data Center Investment
Power availability and access to renewable energy are becoming important factors in data center investment across the Middle East & Africa. As digital infrastructure expands, operators are integrating solar, wind, and hydropower to improve energy efficiency, reduce operating costs, and support sustainability goals. Kenya's climate commitments are encouraging long-term investments in low-carbon infrastructure, while Oman is aligning data center development with Oman Vision 2040 and its net-zero ambitions through greater adoption of renewable energy and energy-efficient infrastructure. These developments are influencing investment decisions and supporting sustainable growth across the Middle East & Africa data center market.
Smart Infrastructure Is Changing Data Center Requirements
Smart city development is creating new demand for data centers across the Middle East & Africa. AI-powered traffic management, connected buildings, digital public services, and IoT applications are generating increasing volumes of data that require reliable cloud and colocation infrastructure. In Saudi Arabia, NEOM's USD 500 billion investment demonstrates how next-generation cities are being built around AI, renewable energy, and advanced digital infrastructure. The region's growing focus on smart urban development is expected to support continued demand for data center capacity and digital infrastructure.
How Core Infrastructure Is Evolving Across the Data Center Market
• Diesel generators remain essential for backup power across the Middle East & Africa, as operators continue to prioritize uptime despite growing sustainability goals. For example, Africa Data Centres' Lagos facility maintains 48 hours of diesel backup to ensure uninterrupted operations.
• Nickel-Zinc (NiZn) and Sodium-Ion batteries are emerging as alternatives to conventional UPS systems, offering improved safety, higher power density, and better sustainability for next-generation data centers.
• 42U racks remain the industry standard, while 45U, 47U, and 48U racks are gaining adoption in larger facilities to support higher server density. NourNet's Riyadh data center operates with approximately 450 rack cabinets.
• Air-based cooling continues to dominate the market, but hybrid and liquid cooling technologies are gaining traction as AI workloads and higher rack densities increase cooling requirements across the Middle East & Africa.
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Key Vendors in the Middle East & Africa Data Center Colocation Market
• 21st Century Technologies
• Africa Data Centres
• Bezeq International
• Bynet Data Communications
• Compass Datacenters
• DAMAC Digital
• Digital Parks Africa
• Digital Realty
• du
• e& Egypt
• ECC Solutions
• EdgeConneX
• Equinix
• Global Technical Realty
• GPX Global Systems
• Gulf Data Hub
• iXAfrica Data Centres
• Khazna Data Centers
• MedOne
• MEEZA
• Mobily
• Moro Hub
• MTN
• Nxtra by Airtel
• Oman Data Park
• Ooredoo
• Open Access Data Centres
• Orange Business
• Paratus Namibia
• Quantum Switch
• Rack Centre
• Raxio Group
• Raya Data Center
• Safaricom
• Sahayeb Data Centers
• Saudi Telecom Company (center3)
• Serverfarm
• Telecom Egypt
• Telkom Kenya
• Turkcell
• Vantage Data Centers
New Entrants
• Agility Logistics Parks
• Anan
• Cloudoon
• DataVolt
• Desert Dragon Data Centers
• ezditek
• HUMAIN
• Kasi Cloud
• Mega DC
• MultiDC
• NED
• NEOIX
• Pure Data Centres
• Qareeb Data Centres
• Techtonic
• Volt
What Key Findings Will Our Research Analysis Reveal?
• How big is the Middle East and Africa data center colocation market?
• What is the growth rate of the Middle East and Africa data center colocation market?
• What are the key trends in the Middle East and Africa data center colocation market?
• What is the estimated market size in terms of area in the Middle East and Africa data center colocation market by 2031?
About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
Contact Us
Mail: enquiry@arizton.com
Contact Us: https://www.arizton.com/contact-us
Website: https://www.arizton.com/
Call: +1 312-680-2940
Source: Arizton Advisory & Intelligence
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