The Middle East data center report that includes depth analysis and data-driven insights on the impact of COVID-19 has been published. Due to the report, the Middle East data center market size by revenue is expected to cross over $3.7 billion by 2025.
The increase in smart city initiatives
While the countries in the Middle East are improving their digital economies, the industry has witnessed significant growth in recent years. There are a variety of smart city projects, which fuel the growth of data centers in the region. It is estimated that the increase in smart city initiatives will develop the demand for edge computing and edge data centers among countries in GCC.
In terms of IoT revenue, it is expected to grow at a CAGR of over 15% by 2025. Additionally, the adoption of 5G networks has started in the region, and it can provide high-capacity connections of up to 10 Gbps. The Middle East data center market is also being affected by the increased use of connected devices by businesses and consumers. This is the high demand for high-bandwidth internet in many rural areas, thereby driving the need for data centers.
The key factors
The growth of the Middle East data center market during the forecast period will be affected by the following factors:
- Renewable energy powered facilities to grow in the Middle East
- Smart city initiatives leading-edge data center deployments
- Cloud adoption fueling data center investments
- Increased government support to boost digital economy in the Middle East
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