Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 198.20 Million |
| Market Size (2030) | USD 660.60 Million |
| CAGR (2025 - 2030) | 27.22% |
| Fastest Growing Market | Middle East |
| Largest Market | Middle East and Africa |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Market Analysis
The Middle East And Africa Artificial Intelligence Optimised Data Center Market size is estimated at USD 198.20 million in 2025, and is expected to reach USD 660.60 million by 2030, at a CAGR of 27.22% during the forecast period (2025-2030).
The Middle East is rapidly becoming a hub for AI-driven data centers, with countries like Saudi Arabia leading the charge. These facilities are designed to handle the immense computational requirements of AI technologies, which are being integrated across industries such as healthcare, finance, and transportation. The establishment of hyperscale data centers by global technology giants is a testament to the region's growing importance in the AI ecosystem.
Saudi Arabia, in particular, is making significant strides in AI adoption. This growth is driving investments in state-of-the-art data centers capable of supporting AI workloads. These facilities are equipped with advanced infrastructure to process and store vast amounts of data, ensuring seamless AI operations. Investments in AI data centers are further supported by the region's strategic focus on sustainability.
Africa is also emerging as a significant player in the AI data center landscape, with countries like Kenya and South Africa making notable advancements. The continent's growing digital economy is driving demand for high-performance computing infrastructure to support AI workloads. Partnerships between local operators and global technology firms are enabling the development of AI-ready data centers, which are critical for sectors such as financial services, healthcare, and manufacturing.
For instance, Kenya's collaboration between Safaricom and iXAfrica has resulted in the launch of an AI-ready data center facility in Nairobi. This facility, powered by low-carbon energy sources, is designed to handle high-density computing needs and advanced AI applications. Such initiatives are not only addressing Africa's infrastructure gaps but are also fostering innovation and economic growth by enabling local enterprises to deploy AI solutions at scale. These developments position Africa as a rising hub for next-generation digital infrastructure, with investments in the sector expected to grow significantly in the coming years.
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Market Trends
Expansion of AI-driven data center infrastructure in Africa
Global technology companies are increasingly investing in Africa to tap into its growing digital market and address the rising demand for AI and cloud infrastructure. These investments are transforming the continent into a hub for digital innovation, with a focus on scalable AI infrastructure, regional digital sovereignty, and sustainable development.
Tech giants such as Microsoft, Huawei, and Equinix are spearheading the development of large-scale and edge data centers across Africa. These facilities are designed to support AI, cloud services, and data-intensive applications, providing the computational power required for machine learning, natural language processing, and real-time analytics.
Several international tech companies are making significant investments in artificial intelligence (AI) data centers across Africa, aiming to bolster the continent's digital infrastructure. Microsoft has committed R5.4 billion to expand its data center footprint in South Africa, building on its previous R20.4 billion investment. This initiative includes training 50,000 individuals in AI-related skills and aims to equip one million South Africans with AI expertise by 2026. Similarly, Google has launched its Johannesburg cloud region, its first in Africa, with an estimated investment of R2.5 billion, which is expected to create 300,000 jobs and contribute R1.7 trillion to the South African economy.
These strategic investments are often tied to public-private partnerships aimed at fostering national digital transformation. Collaborations between tech companies and governments fund infrastructure development, expand internet access, and establish AI research labs, further accelerating Africa’s digital ecosystem. Additionally, companies are prioritizing green data center initiatives by leveraging renewable energy sources such as solar and geothermal power. This not only addresses energy scarcity but also aligns with global ESG (Environmental, Social, Governance) goals, ensuring sustainable development.
Overall, the strategic investments by tech giants in African AI data centers are positioning the continent as a rising hub for AI innovation and digital services. These efforts are attracting global partnerships, empowering local economies, and reinforcing Africa’s role in the global tech ecosystem.
Strategic Procurement of AI Chips to Strengthen the UAE’s AI Ecosystem
The United Arab Emirates (UAE) is taking deliberate steps to strengthen its position in the global artificial intelligence (AI) landscape by focusing on the strategic procurement of advanced AI chips. This approach is aimed at building a robust AI infrastructure that can support the country's long-term technological goals and foster innovation across various industries.
One of the most notable aspects of this trend is the UAE's plan to secure a consistent and large-scale supply of Nvidia’s advanced AI chips. The country is reportedly in the final stages of negotiating an agreement with the United States to import 500,000 AI chips annually, starting in 2025. This agreement is expected to extend through 2027 and could potentially continue until 2030. The primary objective of this procurement strategy is to enable the development of high-performance data centers within the UAE. These data centers will serve as the backbone for AI research, machine learning applications, and other data-intensive operations, ensuring the country remains competitive in the rapidly evolving AI sector.
The allocation of these AI chips has also been carefully planned to maximize their impact. According to the draft terms of the agreement, 100,000 chips per year will be allocated to G42, a prominent Emirati technology firm. The remaining chips are expected to be distributed to U.S.-based companies such as Microsoft and Oracle, which are likely to establish data centers in the UAE. This distribution strategy highlights the UAE's commitment to fostering both local and international collaborations, ensuring that the development of AI capabilities benefits from diverse expertise and resources.
This trend underscores the UAE's broader strategy to position itself as a hub for AI innovation. By investing in advanced AI chips and collaborating with global technology leaders, the UAE aims to create an ecosystem that supports cutting-edge research and practical applications of AI. This approach not only enhances the country's technological capabilities but also aligns with its vision of becoming a leader in the global AI domain.
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Industry Overview
In May 2025, Saudi Arabia is advancing its AI ambitions by planning the development of massive data centers to support its post-oil economic vision. The Kingdom, through its newly launched AI company, Humain, aims to establish itself as a leader in AI by building data centers with a projected capacity of up to 500 megawatts over the next five years. These centers will utilize cutting-edge AI chips from Nvidia and AMD, with the first deployment including 18,000 Nvidia chips to power a Saudi supercomputer. This initiative aligns with Saudi Arabia's Vision 2030 strategy to diversify its economy and position itself as a regional AI hub.
In April 2025, Taha Khalifa, General Manager for the Middle East and Africa at Intel Corporation, highlighted that Intel is actively advancing AI development and data center technologies across the Middle East and Africa, with Saudi Arabia playing a central role in these efforts. The company has launched new Xeon 6 servers designed to enhance energy efficiency and reduce the environmental footprint of data centers, aligning with global sustainability goals. Additionally, Intel is involved in various AI-driven projects in sectors such as oil and gas, healthcare, and smart cities, leveraging Saudi Arabia's Vision 2030 and digital transformation initiatives to position the region as a hub for technological innovation.
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Market Leaders
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Intel Corporation
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Advanced Micor Devices, Inc
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Cisco Systems
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Schneider Electric Industries
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Alfa Laval Corporate AB
- *Disclaimer: Major Players sorted in no particular order
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Market News
- May 2025: Humain, a newly launched initiative backed by Saudi Arabia's sovereign wealth fund, has partnered with Cisco to develop large-scale AI data centers in Saudi Arabia. This collaboration is part of a broader effort that includes partnerships with major tech companies such as Nvidia, AMD, AWS, Qualcomm, and Groq. While Cisco's specific role in the data center projects has not been fully disclosed, the partnership underscores the Kingdom's commitment to advancing AI infrastructure as part of its Vision 2030 goals.
- March 2025: Cassava plans to implement Nvidia accelerated computing and AI software at its data centers in South Africa by June 2025, utilizing Nvidia Cloud Partner (NCP) reference architectures. Additionally, the company aims to expand these developments to its other data center facilities in Egypt, Kenya, Morocco, and Nigeria.
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Industry Segmentation
The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.
Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.
| By Data Center Type | CSP Data Centers | ||
| Colocation Data Centers | |||
| Others (Enterprise and Edge) | |||
| By Component | Hardware | Power | |
| Cooling | |||
| IT Equipments | |||
| Others | |||
| Software Technology | Machine Learning | ||
| Deep Learning | |||
| Natural Language Processing | |||
| Computer Vision | |||
| Services - (Managed Services, Proffesional Services, etc) | |||
| By Country | United Arab Emirates | ||
| Saudi Arabia | |||
| South Africa | |||
| Rest of Middle East and Africa | |||
| CSP Data Centers |
| Colocation Data Centers |
| Others (Enterprise and Edge) |
| Hardware | Power |
| Cooling | |
| IT Equipments | |
| Others | |
| Software Technology | Machine Learning |
| Deep Learning | |
| Natural Language Processing | |
| Computer Vision | |
| Services - (Managed Services, Proffesional Services, etc) |
| United Arab Emirates |
| Saudi Arabia |
| South Africa |
| Rest of Middle East and Africa |
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Market Research FAQs
How big is the Middle East And Africa Artificial Intelligence Optimised Data Center Market?
The Middle East And Africa Artificial Intelligence Optimised Data Center Market size is expected to reach USD 198.20 million in 2025 and grow at a CAGR of 27.22% to reach USD 660.60 million by 2030.
What is the current Middle East And Africa Artificial Intelligence Optimised Data Center Market size?
In 2025, the Middle East And Africa Artificial Intelligence Optimised Data Center Market size is expected to reach USD 198.20 million.
Who are the key players in Middle East And Africa Artificial Intelligence Optimised Data Center Market?
Intel Corporation, Advanced Micor Devices, Inc, Cisco Systems, Schneider Electric Industries and Alfa Laval Corporate AB are the major companies operating in the Middle East And Africa Artificial Intelligence Optimised Data Center Market.
Which is the fastest growing region in Middle East And Africa Artificial Intelligence Optimised Data Center Market?
Middle East is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Middle East And Africa Artificial Intelligence Optimised Data Center Market?
In 2025, the Middle East and Africa accounts for the largest market share in Middle East And Africa Artificial Intelligence Optimised Data Center Market.
What years does this Middle East And Africa Artificial Intelligence Optimised Data Center Market cover, and what was the market size in 2024?
In 2024, the Middle East And Africa Artificial Intelligence Optimised Data Center Market size was estimated at USD 144.25 million. The report covers the Middle East And Africa Artificial Intelligence Optimised Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Middle East And Africa Artificial Intelligence Optimised Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Middle East And Africa Artificial Intelligence (AI) Optimised Data Center Industry Report
Statistics for the 2025 Middle East And Africa Artificial Intelligence (AI) Optimised Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East And Africa Artificial Intelligence (AI) Optimised Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
