The Latin America, Middle East and Africa Data Center Services Market is expected to witness market growth of 18.7% CAGR during the forecast period (2024-2031).
The Brazil market dominated the LAMEA Data Center Services Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $7.43 billion by 2031. The Argentina market is showcasing a CAGR of 19.6% during 2024-2031. Additionally, the UAE market would register a CAGR of 17.7% during 2024-2031.
Maintaining an in-house data center can be capital-intensive, requiring significant hardware, software, and skilled personnel investment. Many organizations are turning to outsourced these services to reduce capital expenditure while benefiting from third-party providers' scalability and operational efficiency.
The increasing emphasis on digital transformation has led organizations to seek these services that support various applications and serve customers in different regions. The rise of edge computing, which involves processing data closer to the source (such as IoT devices), has also contributed to adopting these services.
The UAE’s status as a leading data center hub in the Middle East, bolstered by anticipated investments reaching $1 billion by 2026, will substantially impact this market. This growth will be supported by the country’s ambitious initiatives to become a global tech leader, including plans to expand cloud services, artificial intelligence (AI), and the Internet of Things (IoT). As a result, the demand for robust and scalable data centers will increase, driving further growth in the market. The government’s commitment to healthcare expenditure in Saudi Arabia - accounting for 60% of the Gulf Cooperation Council’s healthcare spending - will also influence this market. The healthcare sector’s growing reliance on digital tools and infrastructure for telemedicine, electronic health records, and AI-driven diagnostics will require advanced data center services to support these technologies. Thus, rising investments and priorities in the UAE and Saudi Arabia will create a favorable environment for this market.
The Brazil market dominated the LAMEA Data Center Services Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $7.43 billion by 2031. The Argentina market is showcasing a CAGR of 19.6% during 2024-2031. Additionally, the UAE market would register a CAGR of 17.7% during 2024-2031.
Maintaining an in-house data center can be capital-intensive, requiring significant hardware, software, and skilled personnel investment. Many organizations are turning to outsourced these services to reduce capital expenditure while benefiting from third-party providers' scalability and operational efficiency.
The increasing emphasis on digital transformation has led organizations to seek these services that support various applications and serve customers in different regions. The rise of edge computing, which involves processing data closer to the source (such as IoT devices), has also contributed to adopting these services.
The UAE’s status as a leading data center hub in the Middle East, bolstered by anticipated investments reaching $1 billion by 2026, will substantially impact this market. This growth will be supported by the country’s ambitious initiatives to become a global tech leader, including plans to expand cloud services, artificial intelligence (AI), and the Internet of Things (IoT). As a result, the demand for robust and scalable data centers will increase, driving further growth in the market. The government’s commitment to healthcare expenditure in Saudi Arabia - accounting for 60% of the Gulf Cooperation Council’s healthcare spending - will also influence this market. The healthcare sector’s growing reliance on digital tools and infrastructure for telemedicine, electronic health records, and AI-driven diagnostics will require advanced data center services to support these technologies. Thus, rising investments and priorities in the UAE and Saudi Arabia will create a favorable environment for this market.
List of Key Companies Profiled
- ABB Ltd.
- Cisco Systems, Inc.
- Dell Technologies, Inc.
- DXC Technology Company
- Equinix, Inc.
- Eaton Corporation plc
- IBM Corporation
- Schneider Electric SE
- Siemens AG
- Microsoft Corporation
Market Report Segmentation
By End User
- Cloud Providers
- Colocation Providers
- Enterprises
By Service
- Installation & integration services
- Maintenance and support
- Training services
- Consulting & Others
By Data Center Type
- Small data centers
- Large data centers
- Medium data centers
By Vertical
- BFSI
- Telecom & ITES
- Government & Defense
- Healthcare & Education
- Retail
- Manufacturing
- Other Vertical
By Country
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. LAMEA Data Center Services Market by End User
Chapter 6. LAMEA Data Center Services Market by Service
Chapter 7. LAMEA Data Center Services Market by Data Center Type
Chapter 8. LAMEA Data Center Services Market by Vertical
Chapter 9. LAMEA Data Center Services Market by Country
Chapter 10. Company Profiles
Companies Mentioned
- ABB Ltd.
- Cisco Systems, Inc.
- Dell Technologies, Inc.
- DXC Technology Company
- Equinix, Inc.
- Eaton Corporation plc
- IBM Corporation
- Schneider Electric SE
- Siemens AG
- Microsoft Corporation
Methodology
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