Middle East & Africa Data Center Equipment Market Size and Forecast (2021-2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Equipment Type [Servers, Storage Devices, Cooling Equipment, Power Distribution Units (PDUs), Racks

The Middle East and Africa (MEA) data center equipment market is projected to experience significant growth, with an expected market size of approximately US$ 19,325.96 million by 2031, up from US$ 8,131.97 million in 2024. This growth translates to a compound annual growth rate (CAGR) of 13.0% from 2025 to 2031, indicating a robust expansion trajectory for the sector.

Executive Summary and Market Analysis

The MEA data center equipment market is categorized into various regions, including Australia, China, India, Japan, South Korea, and the broader Middle East and Africa. According to a report by the Asia Cloud Computing Association published in July 2024, the data center industry is rapidly expanding across the Asia-Pacific (APAC) region, with strong growth projections.

In the MEA region, the data center industry has witnessed substantial growth, driven by both advanced and developing economies. This growth is largely attributed to an increasing willingness among companies to invest in new data storage and deployment infrastructures. For example, a report by Cushman & Wakefield highlights that India's data center capacity across its top seven cities currently stands at 977 MW, with an anticipated increase of 1.03 GW under construction by 2028. Furthermore, plans for an additional 1.29 GW expansion would elevate India's total projected data center capacity to 3.29 GW by 2028.

The launch of new data centers is a key factor contributing to the growth of the MEA data center equipment market. Notable recent developments include Colt Data Centre Services (Colt DCS) announcing the opening of its new hyperscale data center, Inzai 4, in Tokyo, Japan, in February 2025. Additionally, Doma Infrastructure Group (DIG) revealed plans for a 50MW to 60MW data center in West Sydney, Australia, in January 2025. Such developments are expected to significantly boost the demand for advanced infrastructure and equipment, including servers, cooling systems, and power management solutions.

Strategic Insights

Market Segmentation Analysis

The MEA data center equipment market can be segmented based on equipment type and tier type. In terms of equipment type, the market includes servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and other components. As of 2024, the servers segment held the largest market share. When segmented by tier type, the market is divided into tier 1, tier 2, tier 3, and tier 4, with tier 3 also holding the largest share in 2024.

Market Outlook

A notable trend in the data center equipment market is the increasing adoption of ARM servers. Unlike traditional x86 architecture, ARM servers utilize processors based on the ARM architecture, which offers several advantages, particularly in energy efficiency. As energy costs represent a significant operational expense for data center operators, the ability to reduce power consumption without sacrificing performance is a critical advantage. This makes ARM-based servers particularly attractive to cloud providers and enterprises aiming to optimize energy usage and reduce their carbon footprint. According to forecasts from Wells Fargo, ARM server shipments are expected to rise dramatically, from 7.1% of total shipments in 2023 to 22% by 2027.

As data centers evolve to support specialized workloads such as machine learning, artificial intelligence, and edge computing, the lightweight and energy-efficient design of ARM servers positions them as a vital component in modern data centers. The growing interest in ARM technology is anticipated to be a significant trend influencing the data center equipment market.

Country Insights

The MEA data center equipment market is further analyzed by country, including Saudi Arabia, the UAE, South Africa, and other regions within the MEA. In 2024, Saudi Arabia held the largest market share. The country is projected to attract over US$ 15 billion in data center investments by 2030, aiming to increase its installed capacity from over 300 MW to approximately 1,300 MW. This surge in investment has attracted the attention of major hyperscalers, with companies like Amazon, Microsoft, Oracle, and Huawei committing nearly US$ 10 billion in initiatives within Saudi Arabia. This influx of investment aligns with the growing adoption of data center equipment, which is essential for ensuring operational efficiency in the rapidly evolving data center landscape of Saudi Arabia.

Company Profiles

Key players in the MEA data center equipment 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 companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative solutions to their customers. Show more