Middle East & Africa (MEA) Data Center Colocation Market Poised for Strong Growth Through 2031: AI, Automation, and Digitalization Accelerate Demand
Dublin, Sept. 21, 2026 (GLOBE NEWSWIRE) -- "Middle East and Africa Data Center Colocation Market - Industry Outlook & Forecast 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Middle East and Africa data center colocation market was valued at USD 3.33 billion in 2025 and is projected to reach USD 12.88 billion by 2031, expanding at a compound annual growth rate of 25.29%. Growth is being driven by artificial intelligence, cloud computing, digital transformation, expanding connectivity, renewable energy adoption, and rising demand for high-density data center infrastructure.
AI, Automation, and Digitalization Accelerate Demand
Governments and businesses across the Middle East and Africa are increasing investment in AI, automation, supercomputing, and cloud services. These technologies require scalable colocation capacity, resilient power systems, advanced cooling, and high-speed network connectivity.
The UAE remains a regional AI leader, with AI potentially contributing approximately USD 100 billion, or up to 14% of national GDP, by 2030. The UAE AI market is projected to reach USD 50 billion by 2031. Saudi Arabia is also developing into a major hyperscale and AI infrastructure hub under Vision 2030.
In Africa, public- and private-sector investment is strengthening digital capabilities. South Africa committed approximately USD 28.4 million in July 2025 to AI, blockchain, and related technologies. NVIDIA also partnered with Cassava Technologies in 2025 to develop AI-ready data centers across Egypt, Nigeria, Kenya, and Morocco, supported by an investment of approximately USD 700 million.
Renewable Energy Shapes Data Center Development
Sustainability is becoming central to the Middle East and Africa data center colocation market. Operators are evaluating solar, wind, and hydropower to reduce emissions, control energy costs, and support long-term capacity expansion.
Infrastructure and Colocation Market Segmentation
The market includes retail and wholesale colocation, supported by electrical infrastructure, mechanical infrastructure, and general construction services. Key electrical systems include UPS equipment, generators, transfer switches, switchgear, and power distribution units. Mechanical infrastructure covers cooling systems, racks, and related equipment.
Generators remain critical for business continuity. Africa Data Centres' Lagos facility, for example, maintains 48 hours of diesel backup at full load. Operators are also assessing nickel-zinc and sodium-ion UPS batteries to improve power density, safety, and sustainability.
Although air-based cooling remains dominant, higher rack densities and demanding regional climates are accelerating adoption of hybrid and liquid-based cooling. The market includes CRAC and CRAH units, chillers, cooling towers, condensers, dry coolers, economizers, evaporative systems, and emerging liquid cooling technologies. Facilities are also classified under Tier I and II, Tier III, and Tier IV standards.
Regional Data Center Colocation Market Highlights
Competitive and Investment Landscape
Major Middle East and Africa data center investors include Africa Data Centres, DAMAC Digital, Digital Realty, EdgeConneX, Equinix, Gulf Data Hub, Khazna Data Centers, MEEZA, Mobily, Nxtra by Airtel, Oman Data Park, Ooredoo, Open Access Data Centres, Rack Centre, Raxio Group, Sahayeb Data Centers, center3, Serverfarm, Turkcell, and Vantage Data Centers.
Notable investments include Sahayeb Data Centers' Riyadh and Dammam facilities, representing approximately 60 MW of combined IT capacity. Open Access Data Centres announced a USD 240 million Lagos project designed to deliver 24 MW in two phases, with the initial 12 MW phase expected to become operational in 2026.
DataVolt announced plans in February 2025 for an AI-ready facility in Riyadh and a proposed 1.5 GW data center development in NEOM. Other new market entrants include Agility Logistics Parks, Anan, Cloudoon, Desert Dragon Data Centers, ezditek, HUMAIN, Kasi Cloud, Mega DC, MultiDC, NED, NEOIX, Pure Data Centres, Qareeb Data Centres, Techtonic, and Volt.
Market Outlook
The Middle East and Africa data center colocation market is positioned for sustained expansion through 2031. AI workloads, hyperscale cloud deployment, submarine cable development, data sovereignty requirements, and renewable energy investment will continue to shape demand. The strongest opportunities are expected in scalable power capacity, AI-ready facilities, advanced cooling, resilient connectivity, and energy-efficient data center construction across the UAE, Saudi Arabia, South Africa, Kenya, Nigeria, Egypt, Oman, and other emerging regional markets.
Key Attributes
A selection of companies mentioned in this report includes, but is not limited to:
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