Middle East & Africa Micro Data Center Market Forecast to 2030 - Regional Analysis -By Rack Type, Organization Size, and End User

The Middle East & Africa micro data center market was valued at US$ 196.94 million in 2022 and is expected to reach US$ 498.28 million by 2030; it is estimated to grow at a CAGR of 12.3% from 2022 to 2030.

Advent of IoT, Big Data, Machine Learning, and AI Fuel the Middle East & Africa Micro Data Center Market

The Internet of Things (IoT), big data, machine learning, and artificial intelligence (AI) are a few technologies that generate huge volumes of data, require low latency processing, and demand localized computing resources. IoT devices are widely used, connecting various physical objects and enabling data collection and communication. Micro data centers positioned at the edge of the network can provide local computing power, storage, and analytics capabilities, which reduce the latency and bandwidth requirements of transmitting data to a centralized data center. Micro data centers enable real-time decision-making and facilitate IoT deployments across the manufacturing, healthcare, transportation, and smart city industries. Further, processing and analyzing such massive datasets require significant computational power and storage capabilities. Micro data centers offer a scalable and distributed architecture, allowing organizations to process and analyze big data locally, closer to the data source. Micro data centers enhance data processing efficiency and enable real-time analytics by reducing the data transfer time and network congestion associated with transmitting large datasets to a central data center. Also, machine learning and AI algorithms require substantial computational resources for training and inference tasks. Micro data centers provide the necessary processing power and storage capabilities to perform these resource-intensive tasks closer to the data source. Organizations can reduce the latency and response time associated with transmitting data to a centralized data center or the cloud by deploying micro data centers at the edge. This enables real-time decision-making, enhances AI-driven applications, and supports use cases such as autonomous vehicles, intelligent video analytics, predictive maintenance, and personalized recommendations. Hence, the adoption of micro data centers is growing, which is leading to a rise in the launch of advanced micro data centers. For instance, in March 2023, STULZ GMBH launched STULZ Micro DC-a single rack, all-in-one micro data center solution that combines power protection and distribution, cooling, monitoring, and management with fire protection and security. The aim of the launch was to maximize the potential of Industry 4.0 and the industrial Internet of Things (IIoT). Therefore, the advent of various technologies, such as the Internet of Things (IoT), machine learning, big data, and artificial intelligence (AI), is boosting the Middle East & Africa micro data center market.

Middle East & Africa Micro Data Center Market Overview

The micro data center market in the MEA is segmented into Saudi Arabia, South Africa, the UAE, and the Rest of MEA. There is an increase in the adoption of cloud computing in the MEA. The UAE is the leading country in the micro data center market. The UAE's strong IT infrastructure and favorable government policies made it a destination for data center providers. The country is home to many enterprises and financial institutions. The UAE alone has 22 national banks. These factors drive the demand for micro data centers. Banks and financial institutions safeguard customer information in both cloud and on-premise data centers. Several market players are providing micro data centers in the UAE. For instance, EcoStruxure provides micro data centers that combine power, cooling, security, and monitoring in an enclosed rack system.

The MEA is facing a growing need for efficient and reliable data storage and processing solutions. Micro data centers can provide these solutions as they are typically more efficient and reliable than traditional ones. Several companies are launching micro data centers in the MEA to meet these demands. For example, in May 2021, Vertiv launched a pre-assembled micro data center system in the MEA. It is designed for small IT sites or edges. The closed single rack system provided by Vertiv is either 42 or 48U and has up to 3.5 kW of cooling.

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e East & Africa Micro Data Center Market Revenue and Forecast to 2030 (US$ Million)

Middle East & Africa Micro Data Center Market Segmentation

Based on rack type, the Middle East & Africa micro data center market is bifurcated into single rack and multi rack. The single rack segment held a larger share in 2022.

Based on organization size, the Middle East & Africa micro data center market is bifurcated into large enterprises and SMEs. The large enterprises segment held a larger share in 2022.

Based on end user, the Middle East & Africa micro data center market is segmented into BFSI, retail, IT and telecom, manufacturing, healthcare, and others. The IT and telecom segment held the largest share in 2022.

Based on country, the Middle East & Africa micro data center market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The Rest of Middle East & Africa dominated the Middle East & Africa micro data center market in 2022.

Hitachi Ltd, Rittal GmbH & Co KG, Legrand SA, Schneider Electric SE, Vertiv Group Corp, Eaton Corp Plc, Hewlett Packard Enterprise Development LP, Delta Electronics Inc, and Huawei Technologies Co Ltd are some of the leading companies operating in the Middle East & Africa micro data center market.

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