The Middle East Data Center Construction Market is projected to reach $4.39 billion by 2029, growing at a compound annual growth rate (CAGR) of 10.98% [50dad778]. The market was valued at $2.35 billion in 2023, driven by the boom in data centers in countries like the UAE, KSA, Oman, Qatar, and Bahrain. Key players in the market include Gulf Data Hub, Khazna Data Centers, Edgenex Data Centers by DAMAC, and Ooredoo. The growth is fueled by the adoption of emerging technologies like AI and the demand for sustainable facilities powered by renewable energy sources. Smart cities like Dubai and Abu Dhabi are also driving the demand [50dad778].
In Nigeria, Ayotunde Coker, CEO of Open Access Data Centres, predicts that Lagos will match Johannesburg's data center capacity within four years, as South Africa currently holds over 50% of Africa's data center capacity. Lagos is seeing significant investments, with 70-80 megawatts of new capacity under construction, totaling around $700 million. However, the sector faces challenges such as inflation and high power costs, which Coker emphasizes as critical issues for the industry. He notes that data centers are now considered critical national infrastructure, highlighting the need for fiscal discipline and sustainable energy sources. Additionally, the increasing power density requirements driven by AI are expected to further influence the growth of edge data centers in Lagos [4890196a].