Summary
From Dubai to Dammam and Cario - How economic visions, AI and the cloud are transforming the Arab world's data center opportunity
Report Synopsis
Our reference report on the Arab world's commercial data center colocation opportunity. Data centers have become vital pillars of the Middle East’s transition to more diverse, digitally-anchored and oil-independent economies. Despite mounting geopolitical uncertainty, our analysis says the region still offers one of the most extraordinary digital infrastructure investment opportunity in the Global South.
Sample insights
Data centers have become vital pillars of MENA’s transition to more diverse, digitally-anchored and oil-independent economies. Over the 2021-2023 three-year period, nearly 40 new commercial facilities have come live in MENA, nearly doubling the region’s live IT load, on the back of extensive submarine cable buildout, explosive Internet data traffic and increased cloud adoption.
In true Middle Eastern form, the region’s stated ambitions are eye-popping. Taking announcements and other plans at face value, MENA data center projects would unleash upwards of 2500MW of IT load capacity across the region over the next decade.
We say a few things in this report:
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On demand vs. supply: MENA markets offer some of the world’s best supply and demand fundamentals for expanded commercial colocation services.
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On the scale of the MENA colo opportunity: a $3trn GDP. 300m broadband connections. 70+ submarine cables. 200 content, CDN and cloud core and edge PoPs. $7bn in projected cumulative commercial colo CapEx. 20% USD revenue growth.
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On oversupply risk: we don’t see it. Our analysis suggests that most MENA markets are undersupplied relative to their medium to long-term demand potential.
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On the AI impact: GCC countries are a prime potential destination for the offshoring of AI model training.
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On the impact of the war in Gaza: this is the biggest risk to our short-term forecasts. We see a triple fallout – on demand, construction and investment. But we do not expect the increased uncertainty to fundamentally alter our long-term projections for the region’s commercial data center market.
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Table of Contents
EXECUTIVE SUMMARY
MENA's unprecedented spike in data center build
On oversupply risk, the impact of the war in Gaza and renewables
On the outlook for the MENA DC market, the impact of AI, and our projections
PART I REGIONAL ANALYSIS: THE RISE OF THE MIDDLE EAST COMMERCIAL DATA CENTER
From economic transformation to regional fiber hubs and AI, the case for MENA data centers
The Middle East's unprecedented surge of commercial data center construction
MENA commercial data center supply: well past the 500MW mark, and racing towards the gigawatt
The demand side: from digital hubs to AI, MENA drivers of demand are plenty
Market outlook: the Arab world's data center boom
MENA colo economics: of occupancy, power costs, renewables, AI and the war in Gaza
MENA data center competitive analysis: carrier-neutral plays, infracos, telcos and the emergence of global providers
PART II SAUDI ARABIA: HOW A DIGITAL INFRASTRUCTURE BOOM IS POWERING KSA'S DIGITAL ECONOMY DECADE
KSA MARKET CONTEXT
Saudi Arabia has the largest economy in the Middle East and North Africa
Saudi Arabia has entered a "digital economy decade", underpinned by the Vision 2030 plan
A mature, highly-penetrated ultra-highspeed connectivity market
A dynamic international capacity hub at the nexus of MENA, Asia, Africa and Europe traffic
Submarine cable deployments in KSA: the making of a global digital hub
KSA has MENA's most diverse terrestrial fiber market - but price points are still high
KSA power, land and regulation context for commercial data centers
KSA COMMERCIAL DATA CENTER DEMAND ANALYSIS
KSA demand summary: upwards of 700MW of potential demand
Breaking down KSA demand: considerable upside from enterprise, connectivity and content
Public cloud deployments are accelerating in KSA
KSA colocation demand - summary charts
KSA COMMERCIAL DATA CENTER SUPPLY
KSA has the second largest commercial data center market in MENA
KSA commercial data center capacity is expanding fast
The KSA market is built around three core data center hub locations - oil and gas, IX and enterprise
Competition: KSA has an increasingly fragmented commercial data center market
Overview of KSA's key DC providers
KSA COMMERCIAL DATA CENTER MARKET OUTLOOK
The KSA pipeline: a strong upswing trajectory, on the back of cloud, AI and more cables
KSA has a commercial DC project pipeline of nearly 1GW of IT load
The economics: high prices and a billion-dollar outlook for the KSA commercial colocation market
KSA commercial colocation - summary market forecast
PART III UNITED ARAB EMIRATES: AI, regional interconnectivity and the makings of a global digital hub
UAE MARKET CONTEXT
The UAE's economy - highly diversified and holding up well in the face of regional uncertainty
The UAE is one of the world's most digitized markets
A foremost Global South international capacity hub in the Persian Gulf
Submarine cable deployments in UAE: a prominent Fujairah market, with Kalba coming up
UAE power, land and regulation context - a sharp rise in renewable energy availability
UAE demand summary: upwards of 450MW of potential demand
Breaking down UAE demand: considerable upside from enterprise, connectivity and content
The UAE is a top destination for public cloud deployments
UAE colocation demand - summary charts
UAE COMMERCIAL DATA CENTER SUPPLY
UAE has the largest commercial data center market in MENA
UAE commercial data center capacity: hyperscaler-focused and growing fast
The UAE market is built around three core data center hub locations
The UAE has a highly concentrated commercial data center market
The dominance of Khazna, GDH and Equinix
UAE COMMERCIAL DATA CENTER MARKET OUTLOOK
The UAE pipeline: More cloud, AI to power the market to nearly 500MW of IT load
The Emirates market has a commercial DC project pipeline of nearly 200MW of IT load
The economics: A billion-dollar outlook for the UAE commercial colocation market
UAE commercial colocation - summary market forecast
PART IV EGYPT: A VITAL DIGITAL INFRASTRUCTURE CORRIDOR RACES TO CATCH UP TO THE CLOUD ERA
The Egyptian economy - growth amidst significant doldrums in MENA's third largest economy
The Egyptian market is still building a foundation for expanded digital services adoption
A critical digital corridor with extensive diversity - but constrained by a longstanding monopoly
Egypt's fiber diversity - more cables coming
Egypt power, land and regulation context for commercial data centers
EGYPT COMMERCIAL DATA CENTER DEMAND ANALYSIS
Egypt demand summary: 100MW+ of potential demand, most of which has yet to emerge
Breaking down Egyptian demand: improving connectivity ecosystem, considerable enterprise upside as cloud takes root
Breaking down Egyptian demand: the hyperscalers are coming
Egypt colocation demand - summary charts
EGYPT COMMERCIAL DATA CENTER SUPPLY
Egypt has MENA's third largest economy - but is far behind peers on available colocation supply
Egypt commercial data center capacity: hyperscaler-focused and growing fast
From smart village to New Capital: three major facility hubs within Cairo
Egypt has a fragmented - if top-heavy - commercial data center market
Egypt commercial colo strategic mapping: from TE to GPX and Raya
EGYPT COMMERCIAL DATA CENTER MARKET OUTLOOK
The Egyptian pipeline: a race to fill out a considerable supply shortfall
The Egyptian market has a commercial DC project pipeline of nearly 150MW of IT load
The outlook: accelerated adoption counterbalanced by strong pricing pressure and non-negligible overbuild risk
Egypt commercial colocation - summary market forecast
PART V: QATAR -BUILDING UP TO SUPPORT QATAR NATIONAL VISION 2030
Qatar economic and broadband market context - population, GDP growth and broadband adoption
The Qatar value proposition: strategic location, good fiber diversity, cheap power
Qatar operating context summary KPIs: from cable landings to renewables
Qatar demand summary: upwards of 90MW of potential demand
QATAR COMMERCIAL DATA CENTER SUPPLY & COMPETITIVE CONTEXT
Qatar commercial supply growth has been relatively flat - and facilities have a retail slant
Qatar commercial capacity summary charts
Qatar has a duopoly-slanted commercial data center market
Mapping of Qatar commercial facilities - Doha
The Qatar pipeline: a solid, if speculative upside potential
Qatar commercial colocation - summary market forecast
ART VI:- REST OF MENA: BAHRAIN, JORDAN, KUWAIT, MOROCCO, OMAN
BAHRAIN DATA CENTER MARKET: STILL SMALL, BUT SHOWING MODERATE PROMISE
Bahrain commercial data center market overview
The Bahrain value proposition: strategic location, diverse telecom market, aggressive tech policies
Bahrain commercial supply: flat growth, with moderate upside
The Bahrain pipeline: supply capacity set to nearly double
Bahrain competitive context: Batelco, then everyone else
JORDAN: THE RISE OF AQABA
Jordan commercial data center market overview
Jordan has a moderately competitive commercial data center market
The Jordan pipeline: Aqaba emerging to complement Amman
KUWAIT: GOOGLE IS COMING
Kuwait commercial data center market overview
Kuwait has a moderately competitive commercial data center market
The Kuwait pipeline: moderate growth outside of hyperscaler self-build
MOROCCO DATA CENTER MARKET SLOWLY LIVING UP TO A LONG-HERALDED PROMISE
Morocco commercial data center market overview
Morocco: A promising but constrained market at the intersection of four continents
Morocco commercial supply: flat growth, with moderate upside
The Morocco pipeline: supply capacity set to more than double
Morocco competitive context: increasingly competitive
OMAN: MENA's RISING ALTERNATIVE CONNECTIVITY (AND CLOUD?) HUB
Oman commercial data center market overview
The Oman value proposition: a strategically-located, business-friendly and highly fiber-diverse regional hub
Oman commercial supply: moderate historical growth balanced by robust pipelin
The Oman pipeline: supply capacity set to nearly double
Oman has an increasingly competitive commercial data center market
REGIONAL ANALYSIS
Middle East & North Africa - Commercial DC facility mapping - 2023E
MENA - Number of live data center facilities
MENA - Number of public cloud availability zones
MENA - Evolution of commercial data center live IT load
MENA - Evolution of commercial data center annual services revenue
MENA - 4G/5G penetration of the population - 2023E
MENA - key submarine cable landing stations - 2023E
Cable systems and landing stations build In MENA - 2018-26F
Cloud regions in the Middle East & North Africa
MENA countries with cloud-first policies
MENA - Commercial data center market snapshot - 2023E
MENA - Commercial data center facilities new builds
MENA - Commercial data center facilities by country - 2023E
MENA commercial data center facilities by size - 2023
MENA - Commercial data center supply overview - 2023E
MENA - Commercial data center capacity at full-build potential - 2018-23E
MENA - Cumulative commercial data center supply capacity - based on live IT load - 2018-23E
MENA - commercial data center capacity going live - 2018-23E
MENA commercial data center facilities by type - 2023E
MENA - Country share of commercial data center live supply - 2023E
MENA available supply - a view by bracket - 2023E
MENA - Commercial data center supply capacity - based on live IT load - 2023E
MENA - Top 10 commercial data center metros - based on IT load - 2023E
Public cloud availability zones by region - 2023F
Public cloud availability zones in MENA - 2020-26F
MENA - Estimated commercial DC demand potential - Power
MENA - Commercial data center demand by country - 2030F
MENA - Commercial DC demand potential - by customer type
MENA - New commercial DC facilities coming to market - 2023-28F
MENA - New facility deployments by pipeline category - 2024-28F
MENA - Commercial data center market outlook - 2024-28F
MENA - Commercial data center supply projection - 2023-28F
MENA commercial DC CapEx - 2019-28F - US$bn
Country share of MENA commercial DC CapEx - 2023-28F
MENA commercial DC revenue - 2023-28F - US$bn
MENA - How long does it take to sell 1MW of colocation capacity- months
MENA - Renewable share of power generation ?- 2023E
MENA - Commercial DC monthly price per rack by country
MENA - Commercial DC occupancy by country
MENA - Industrial electricity rates in key markets - 2023E
MENA - Average power density in key markets - kW/rack
Top 15 commercial colocation providers - Live IT load - 2023E
SAUDI ARABIA
Saudi Arabia - Macro-economic snapshot - 2023E
Saudi Arabia's three decades of transformation
Saudi Vision 2030 key tenets
KSA broadband connections - 2018-28F
KSA vs. peer markets - broadband penetration of the population - 2023E
KSA - Meaningful broadband of the population - 2018-28F
Evolution of average download speeds in Saudi Arabia
Saudi Arabia - International capacity market snapshot
Submarine cables landing in Saudi Arabia - 2023
Evolution of number of submarine cables landing in Saudi Arabia
KSA - Cable landing station by location (2010-26F)
KSA - Terrestrial capacity market snapshot
KSA - Commercial data center market snapshot - 2023E
Public cloud availability zones in KSA - 2020-24F
KSA - Estimated commercial DC demand potential - Power
KSA - Commercial DC demand potential - by customer type
KSA public cloud availability zones by metro - 2020-24F
KSA - Commercial data center market snapshot - 2023E
KSA - Commercial data center supply capacity - based on live IT load - 2018-23E
KSA - Commercial data center capacity vs. peer markets
KSA - Commercial data center supply: end-state/potential campus capacity - 2018-23E
KSA - Commercial DC facilities by key metro
KSA - New commercial facilities going live
KSA - Commercial data center colocation facilities by type (2023E)
Mapping of commercial data center facilities - Riyadh metro
Mapping of commercial data center facilities - Jeddah metro
Mapping of commercial data center facilities - Dammam metro
KSA - share of commercial colocation supply - 2023-25F
KSA - Competitive mapping of commercial colocation supply - 2023
KSA - Commercial data center market outlook - 2023-28F
KSA - Commercial data center supply projection - 2023-28F
KSA - Commercial data center market outlook - 2023-28F
KSA commercial colocation market - revenue growth outlook
UNITED ARAB EMIRATES
UAE - Macro-economic snapshot - 2023E - UAE broadband connections - 2018-28F
UAE vs. peer markets - broadband penetration of the population - 2023E
UAE - Key technology coverage of the population
UAE - International capacity market snapshot - 2023 - Submarine cables landing in the UAE - 2023
Evolution of number of submarine cables landing in the UAE
UAE - Cable landing station by location (2010-26F); UAE - Terrestrial capacity market snapshot
UAE - Commercial data center market snapshot - 2023E
Public cloud availability zones in the UAE - 2020-24F
UAE - Estimated commercial DC demand potential - Power; UAE - Commercial DC demand potential - by customer type
UAE public cloud availability zones by metro - 2020-24F
UAE - Commercial data center market snapshot - 2023E
UAE - Commercial data center supply capacity - based on live IT load - 2018-23E
UAE - Commercial data center capacity vs. peer markets
UAE - Commercial data center supply: end-state/potential campus capacity - 2018-23E
UAE - Commercial DC facilities by key metro ; UAE - New commercial facilities going live
UAE - Commercial data center colocation facilities by type (2023E)
Mapping of commercial data center facilities - Dubai, Abu Dhabi, Fujairah
UAE - share of commercial colocation supply - 2023-25F
UAE - Competitive mapping of commercial colocation supply - 2023
UAE - Commercial data center market outlook - 2023-28F; UAE - Commercial data center supply projection - 2023-28F
UAE - Commercial data center market outlook - 2023-28F
UAE commercial colocation market - revenue growth outlook
EGYPT
Egypt - Macro-economic snapshot - 2023E
Egypt broadband connections - 2018-28F
Egypt vs. peer markets - broadband penetration of the population - 2023E
Egypt - Key technology coverage of the population
Submarine cables landing in Egypt - 2023; Evolution of number of submarine cables landing in Egypt
Egypt - Commercial data center market snapshot - 2023E
Egypt - Estimated commercial DC demand potential - Power
Egyptian companies' IT priorities - 2023
Egypt - Commercial data center market snapshot - 2023E
Egypt - Commercial data center supply: end-state/potential campus capacity - 2018-23E
Egypt - Commercial data center colocation facilities by type (2023E)
Egypt - New commercial facilities going live
Mapping of commercial data center facilities - Cairo metro
Egypt - Share of commercial colocation supply - by provider - 2023E (1) (2)
Egypt - Share of commercial colocation supply - by provider type
Egypt - key provider data - 2023E
Egypt - Commercial data center supply projection - 2023-28F
QATAR
Qatar - Macro-economic snapshot - 2023E
Qatar - Wholesale fiber market snapshot - 2023E
Qatar - Commercial data center market snapshot - 2023E
Qatar - Commercial data center market snapshot - 2023E
Qatar - Commercial data center supply capacity - based on live IT load - 2018-23E
Qatar vs. peer markets - MW commercial supply capacity per 1m population
Qatar - Commercial data center supply: full build campus capacity - 2018-23
Qatar - Commercial data center supply by facility type - 2023E
Qatar - Competitive mapping of commercial colocation supply - 2023
Qatar - share of commercial colocation supply - 2023-25F
Mapping of commercial data center facilities - Qatar
Qatar - share of commercial colocation supply - 2023 (1)
Qatar - Commercial data center market outlook - 2023-28F
Qatar - Commercial data center supply projection - 2023-28F
BAHRAIN
Bahrain - Strategic market position
Bahrain - Commercial data center market snapshot - 2023
Bahrain - Commercial data center market outlook - 2023-28F
Bahrain - Commercial data center supply projection - 2023-28F
Bahrain - Competitive mapping of commercial colocation supply - 2023
Bahrain - key commercial facility providers - 2023E
JORDAN
Jordan - Competitive mapping of commercial colocation supply - 2023
Jordan - key commercial facility providers - 2023E
Jordan - Commercial data center market outlook - 2023-28F
Jordan - Commercial data center supply projection - 2023-28F
KUWAIT
Kuwait - Commercial data center market outlook - 2023-28F
Kuwait - Commercial data center supply projection - 2023-28F
MOROCCO
Morocco - Commercial data center market outlook - 2023-28F
Morocco - Commercial data center supply projection - 2023-28F
Morocco - Competitive mapping of commercial colocation supply - 2023
Morocco - key commercial facility providers - 2023E
OMAN
Oman - Commercial data center market snapshot - 2023E
Oman - Commercial data center market outlook - 2023-28F
Oman - Commercial data center supply projection - 2023-28F
Oman - Competitive mapping of commercial colocation supply - 2023
