Middle East & Africa Data Center Generator Market Forecast to 2028 - COVID-19 Impact and Regional Analysis - by Product Type, Capacity, and Tier

The data center generator market in Middle East & Africa is expected to grow from US$ 433.83 million in 2021 to US$ 591.14 million by 2028. It is estimated to grow at a CAGR of 4.5% from 2021 to 2028.

Environmental sustainability and energy savings are two fundamental factors fueling the interest in renewables. The cost of power in a data center is high, accounting for over half of the total operating expenses. When rising and unpredictable energy costs and levies linked with pending carbon emission regulations are considered, it is easy to see why operators are becoming more interested in renewables' role in lowering and stabilizing energy costs. Google's hyper-scale data centers have been pioneers in renewable energy programs, researching their inherent financial, environmental, and social value. Google chooses locations for its data centers based on various considerations, including the availability of reliable service and the opportunity for renewable energy. As a result, it employs renewable energy in the form of wind and solar to power over 35% of its operations through power purchase agreements (PPAs), a technique that encourages utility providers to increase the use of renewables. Facebook is constructing facilities in Iowa that will be powered entirely by a local wind project that the company helped establish. Dubai Electricity and Water Authority launched the first phase of the Middle East & Africa's largest solar-powered data center as the emirate attempts to strengthen its green economy and focus on sustainable development. Rooftop solar, wind, geothermal, and waste heat reclamation are viable data center options due to the high cost of photovoltaic solar arrays, climate conditions, and space constraints. However, because rooftop solar is free when accessible, it has become one of the more frequently employed ways in data center environments, lowering the cost of implementation. Wind turbines are less common, owing to real estate constraints and costs, yet interest in this resource is growing. Geothermal and waste heat recovery projects are also in the works. Battery storage is also important in renewable energy management because it can help with intermittency. While the technology is viable, many businesses cannot use it on a wide scale due to financial and space constraints. Battery storage has the potential to help overcome some of the reliability issues that come with renewable energy if the costs come down.

With new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the Middle East & Africa data center generator market at a substantial CAGR during the forecast period.

Middle East & Africa Data Center Generator Market Segmentation

The Middle East & Africa data center generator market is segmented into product type, capacity, tire, and country. Based on product type, the market is segmented into diesel, natural gas, and bi-fuel. In 2020, the diesel segment held the largest market share. Based on capacity, the Middle East & Africa data center generator market is segmented into below 1 MW, 1-2 MW, and greater than 2 MW. In 2020, the below 1MW segment held the largest market share and is expected to register the highest CAGR in the market during the forecast period. Based on tire, the market is segmented into tier 1 and tier 2, tier 3, and tier 4. In 2020, the tier 3 segment held the largest market share. Based on country, the Middle East & Africa data center generator market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of the MEA. In 2020, the UAE held the largest market share.

ABB Ltd; Atlas Copco AB; Caterpillar Inc.; Cummins Inc.; DEUTZ AG; GENERAC POWER SYSTEMS INC.; HITEC POWER PROTECTION; Kohler Co.; Mitsubishi Heavy Industries, Ltd.; and KIRLOSKAR OIL ENGINES LIMITED are among the leading companies in the Middle East & Africa data center generator market.