Dublin, April 29, 2026 (GLOBE NEWSWIRE) — The “Africa & Middle East Data Center Colocation Market Size & Forecast by Revenue, Capacity, and 70+ Metrics Across Service Type, Facility Architecture, Customer Segment, AI vs Non-AI Workloads, End-Use, and Capacity Pipeline, Databook Q2 2026” report has been added to ResearchAndMarkets.com’s offering.
The Middle East & Africa data center colocation market is expected to grow by 28.5% on an annual basis to reach US$4.9 billion in 2026. The colocation market in Middle East & Africa has demonstrated consistent expansion during 2021-2025, recording a CAGR of 24.7%. This growth momentum is accelerate over the forecast period, with the market projected to register a 22.8% from 2026-2030. By the end of 2030, the colocation market is anticipated to expand from US$3.8 billion in 2025 to approximately US$11.1 billion, driven by surging AI and GPU workload demand, accelerating hyperscaler capacity build-out, and sustained enterprise adoption of hybrid multi-cloud infrastructure.
Africa’s colo market is at the early stages of a structural growth phase driven by subsea cable investment, hyperscale market entry, and the foundational growth of African digital economies. South Africa’s Johannesburg market is the continent’s investment-grade anchor, while Kenya and Nigeria represent the next tier of development opportunity. The continent’s universal challenge of power infrastructure is being addressed through increasingly sophisticated on-site generation solutions, and operators who master energy-autonomous data center operations in African conditions will have a durable competitive advantage. The regulatory landscape is maturing rapidly across multiple jurisdictions, and the Africa colo opportunity rewards operators and investors with long investment horizons, infrastructure execution capability, and genuine local market knowledge.
The Middle East’s colo market is undergoing a fundamental reshaping, with Saudi Arabia’s government-backed digital transformation investment elevating the region from UAE-dominant to a dual-market structure with significant secondary market development in Qatar and Kuwait. Sovereign AI infrastructure investment and data localization mandates are creating a protected demand base that will sustain colo investment for the next decade. UAE retains its advantages in commercial connectivity density and established hyperscale ecosystem, while Saudi Arabia’s scale of government commitment and capital availability make it the region’s fastest-growing market. For operators and investors, the Middle East presents a compelling combination of government-secured demand, premium pricing for sovereign-compliant infrastructure, and a long investment runway driven by Vision 2030 and equivalent national transformation programs, balanced against the operational demands of extreme climate conditions and the complexity of sovereign investment requirements.
Competitive Landscape
Current State of the Market: Africa’s colo market is at an early stage globally but growing rapidly from a small base. South Africa is the most developed African market, with Nigeria, Kenya, and Egypt forming the next tier. The market is characterized by limited supply, growing demand, and high infrastructure investment requirements driven by power and connectivity constraints. The Middle East colo market is led by UAE (Dubai and Abu Dhabi) and is experiencing rapid growth in Saudi Arabia. Qatar, Kuwait, and Bahrain have smaller but developing markets. The region is characterized by government-aligned investment and sovereign-directed demand alongside commercial enterprise and hyperscale demand.
Key Players and New Entrants: Teraco Data Environments (South Africa): The continent’s most carrier-dense colo operator, Africa Data Centres (Liquid Intelligent Technologies): Operates across South Africa, Nigeria, Kenya, and other African markets, Vantage Data Centers: Has entered South Africa with a major Johannesburg campus, Raxio Data Centres: Operates in Uganda, Ethiopia, Mozambique, and other East African markets, MainOne (acquired by Equinix): Provides colo and connectivity in Nigeria and Ghana, WIOCC and Seacom: Carrier-focused data center and connectivity infrastructure, Equinix, Khazna (Mubadala), Gulf Data Hub, G42, e& (Etisalat), and du operate facilities in Dubai and Abu Dhabi, stc (Saudi Telecom Company), DataVolt, and Colt DCS are developing major colo capacity in Riyadh.
Recent Launches, Mergers and Acquisitions
- In Africa, Raxio has advanced multiple East African facility openings in 2025. Africa Data Centres continued regional expansion. Vantage Data Centers advanced its Johannesburg campus development.
- In the Middle East, DataVolt and Colt DCS have advanced Riyadh data center developments in 2025. Saudi Aramco has partnered with hyperscalers for cloud infrastructure in the Kingdom. UAE operators have continued Abu Dhabi and Dubai capacity expansion. G42 has signed cloud partnership agreements with multiple global technology companies.
Infrastructure & Regulatory Environment
Power Grid Access and Energy Mix
- Africa’s electricity infrastructure is the continent’s defining development constraint. South Africa, Egypt, Morocco, and Kenya have the most developed grids, but chronic reliability challenges most visibly South Africa’s Eskom load shedding – affect all major African colo markets. Africa has substantial renewable energy potential: solar across the Sahel and Southern Africa, hydroelectric in East and Central Africa, and wind in South Africa and Morocco. Falling solar and battery storage costs are enabling off-grid or hybrid colo power models. New large-scale renewable projects including South Africa’s REIPPPP auctions and Kenyan geothermal development are adding clean power capacity.
- Middle Eastern electricity grids are generally reliable, with GCC countries having well-maintained infrastructure. UAE’s DEWA and Saudi Arabia’s SEC provide relatively stable power. The region is investing in renewable energy – Saudi Arabia’s NEOM and Vision 2030 include large-scale solar and wind development, and UAE’s Masdar is a global renewable energy developer but current data center operations rely predominantly on natural gas-based generation. GCC grid interconnection provides additional regional resilience. Cooling energy costs are high given extreme ambient temperatures, making cooling efficiency the central operational variable for Middle East colo profitability.
Government Policy and Data Localization
- South Africa: POPIA: Africa’s most mature data protection framework, with sector-specific localization requirements.
- Kenya: Data Protection Act 2019: Operational framework with ongoing regulatory development.
- Nigeria: Data Protection Act 2023: Enacted, with enforcement activity accelerating.
- African Union: Convention on Cyber Security and Personal Data Protection: Continental framework; ratification varies by member state.
- Saudi Arabia: Personal Data Protection Law (PDPL) and Cloud Computing Regulatory Framework: Specified data categories must be hosted domestically; foreign investment in critical digital infrastructure subject to national security review.
- UAE: PDPL, ADGM, and DIFC frameworks: Structured governance across onshore and financial free zone jurisdictions.
- Qatar: National Cyber Security Strategy: Includes data governance and domestic hosting requirements.
Barriers to Expansion
- Africa: Power infrastructure reliability is the primary barrier across most markets. Political and economic stability varies significantly between markets. Foreign exchange risk affects equipment procurement and financing. Legal and regulatory complexity varies by country. Talent for data center construction and operations is limited. Internet infrastructure remains underdeveloped in many markets outside primary cities.
- Middle East: Cooling costs in extreme heat are a universal operational challenge. Water scarcity limits water-based cooling options. Talent for specialized data center roles is limited domestically and relies on international recruitment. Regulatory approval for foreign-operated infrastructure can be complex in Saudi Arabia. Construction costs, while declining, remain elevated for specialized data center facilities.
A Bundled Offering, Combining the Following 4 Reports, Covering 192 Tables and 224 Figures:
- Middle East & Africa Data Center Colocation Market Size and Forecast (2021-2030) Databook
- Saudi Arabia Data Center Colocation Market Size and Forecast (2021-2030) Databook
- South Africa Data Center Colocation Market Size and Forecast (2021-2030) Databook
- United Arab Emirates Data Center Colocation Market Size and Forecast (2021-2030) Databook
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 500 |
| Forecast Period | 2026 – 2030 |
| Estimated Market Value (USD) in 2026 | $4.9 Billion |
| Forecasted Market Value (USD) by 2030 | $11.1 Billion |
| Compound Annual Growth Rate | 22.8% |
| Regions Covered | Africa, Middle East |
Report Scope for Each Report
Data Center Market Overview
- Total Data Center Market Revenue
- Total Installed Power Capacity (MW)
- Colocation Share within Total Data Center Market (%)
Data Center Colocation Market Size and Forecast
- Total Installed Capacity
- Total Leased Capacity
- Net Annual Absorption
- Vacancy Rate
- Total Colocation Market Revenue
Colocation Market by Service Type
- Retail Colocation
- Wholesale Colocation
Colocation Market by Facility Architecture
- Core / Metro Colocation Data Centers
- Edge Colocation Data Centers
Colocation Market by Customer Segment
- Hyperscalers
- Large Enterprises
- Mid-Market / Small and Medium Businesses
- Government / Public Sector
Artificial Intelligence Colocation Market
- Installed Capacity
- Leased Capacity
- Colocation Market Revenue
- Wholesale Colocation Revenue
Non-Artificial Intelligence Colocation Market
- Installed Capacity
- Leased Capacity
- Colocation Market Revenue
- Wholesale Colocation Revenue
Colocation Market by End-Use Sector
- Information Technology and IT Enabled Services
- Banking, Financial Services and Insurance
- Telecom
- Retail
- Media, Gaming and Entertainment
- Manufacturing
- Government
- Others
Data Center Capacity Pipeline
- Total Operational Capacity
- Total Capacity under Construction
- Planned and Announced Capacity
Data Center Operational Efficiency Metrics
- Power Usage Effectiveness (PUE)
- Energy Reuse Factor
- Renewable Energy Factor
- Cooling System Efficiency
- Average Rack Power Density
- Artificial Intelligence vs. Traditional Workload Density
Data Center Financial and Investment Metrics
- Capital Expenditure per MW
- Land Acquisition Cost per Acre
- Total Operating Expenditure per MW per Year
- Average Electricity Rate
- Electricity Cost per kW per Month
- Colocation Price per kW per Month
- Wholesale Price per MW per Month
- Revenue per Square Foot
For more information about this report visit https://www.researchandmarkets.com/r/prynu0
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- African and Middle Eastern Data Center Colocation Market
