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Middle East Data Center Storage Market Size (2024 - 2029)

The Middle East Data Center Storage Market is poised for significant growth, driven by the expanding digital economy in the region. The United Arab Emirates stands out as a major data center hub, with substantial investments anticipated to enhance its infrastructure. The adoption of cloud-based solutions, particularly Software as a Service (SaaS), is contributing to the increasing demand for data center storage. This growth trajectory is supported by the region's expanding IT load capacity, construction of raised floor areas, and the installation of a vast number of racks, with Saudi Arabia expected to lead in rack installations. Additionally, the development of submarine cable systems is enhancing connectivity, further bolstering the market's expansion.

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Market Size of Middle East Data Center Storage Industry

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Middle East Data Center Storage Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.23 Billion
Market Size (2029) USD 2.21 Billion
CAGR (2024 - 2029) 12.50 %
Market Concentration Low

Major Players

Middle East Data Center Storage Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Middle East Data Center Storage Market Analysis

The Middle East Data Center Storage Market size is estimated at USD 1.23 billion in 2024, and is expected to reach USD 2.21 billion by 2029, growing at a CAGR of 12.5% during the forecast period (2024-2029).

The Middle East digital economy is projected to grow to about USD 780 billion by 2030, which would significantly outpace the global average through the end of the decade. The United Arab Emirates is one of the largest data center hubs in the Middle East, with the construction of more data centers planned. Upto USD 1 billion in additional investments are projected by 2026. In 2019, Microsoft Azure launched two cloud regions in Dubai and Abu Dhabi. SaaS, being a cloud-based model, provides flexible, scalable, and cost-effective software solutions that can be quickly deployed and aligned with evolving business requirements in the Middle East. Such factors are leading to the growth in market demand.

  • The upcoming IT load capacity of the Middle East data center market is expected to reach 2,059.5 MW by 2029.
  • The region's construction of raised floor area is expected to increase to 9.7 million sq. ft by 2029.
  • The region's total number of racks to be installed is expected to reach 496K units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029.
  • There are close to 26 submarine cable systems connecting the Middle East, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Blue, which stretches over 4,696 kilometers with a landing point in Tel Aviv.

Middle East Data Center Storage Industry Segmentation

Data center storage encompasses devices, hardware, networking equipment, and software technologies facilitating the storage of data and applications within data center facilities, which are used for storing, managing, retrieving, distributing, and backing up digital information within such facilities.

The Middle East data center storage market is segmented by storage technology (network attached storage (NAS), storage area network (SAN), and direct attached storage (DAS)), storage type (traditional storage, all-flash storage, hybrid storage), end user (IT & telecommunication, BFSI, government, media & entertainment, and other end users), and country. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Storage Technology
Network Attached Storage (NAS)
Storage Area Network (SAN)
Direct Attached Storage (DAS)
Other Technologies
By Storage Type
Traditional Storage
All-Flash Storage
Hybrid Storage
By End User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End Users
By Country
Israel
Saudi Arabia
United Arab Emirates
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Middle East Data Center Storage Market Size Summary

The Middle East data center storage market is poised for significant growth, driven by the region's burgeoning digital economy and increasing demand for cloud-based solutions. The United Arab Emirates stands out as a major hub, with substantial investments in data center infrastructure and the introduction of cloud services by major players like Microsoft Azure. The market is characterized by a shift towards software-defined infrastructure, enhancing scalability and agility, which is further bolstered by the rollout of 5G networks. This technological advancement is expected to enhance connectivity and drive demand for advanced data center storage solutions. The presence of numerous submarine cable systems also supports the region's connectivity needs, facilitating the expansion of data center capabilities.

In Saudi Arabia, the adoption of cloud technology and the government's Vision 2030 initiative are key drivers of market growth. The country's strategic focus on AI and technological advancement aims to diversify its economy and establish a knowledge-based society. This has led to increased foreign investment in the technology sector, with major cloud providers like Oracle partnering with local entities to enhance data center infrastructure. The fragmented market sees major players such as Dell Inc., Hewlett Packard Enterprise, and NetApp Inc. expanding their presence through strategic collaborations and innovative product offerings. These developments are expected to significantly boost the demand for data center storage solutions across the region.

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Middle East Data Center Storage Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growing Digitalization and Emergence of Data-centric Applications

      2. 1.2.2 Rising Cloud Applications Among End Users

    3. 1.3 Market Restraints

      1. 1.3.1 Compatibility and Optimum Storage Performance Issues

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Storage Technology

      1. 2.1.1 Network Attached Storage (NAS)

      2. 2.1.2 Storage Area Network (SAN)

      3. 2.1.3 Direct Attached Storage (DAS)

      4. 2.1.4 Other Technologies

    2. 2.2 By Storage Type

      1. 2.2.1 Traditional Storage

      2. 2.2.2 All-Flash Storage

      3. 2.2.3 Hybrid Storage

    3. 2.3 By End User

      1. 2.3.1 IT & Telecommunication

      2. 2.3.2 BFSI

      3. 2.3.3 Government

      4. 2.3.4 Media & Entertainment

      5. 2.3.5 Other End Users

    4. 2.4 By Country

      1. 2.4.1 Israel

      2. 2.4.2 Saudi Arabia

      3. 2.4.3 United Arab Emirates

Middle East Data Center Storage Market Size FAQs

The Middle East Data Center Storage Market size is expected to reach USD 1.23 billion in 2024 and grow at a CAGR of 12.5% to reach USD 2.21 billion by 2029.

In 2024, the Middle East Data Center Storage Market size is expected to reach USD 1.23 billion.

Middle East Data Center Storage Market Report Snapshots

Middle East Data Center Storage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)