Middle East Data Center Storage Market Size and Share
Middle East Data Center Storage Market Analysis by Mordor Intelligence
The Middle East Data Center Storage Market size is expected to grow from USD 1.38 billion in 2025 to USD 1.55 billion in 2026 and is forecast to reach USD 2.80 billion by 2031 at 12.5% CAGR over 2026-2031.
The Middle East data center storage market is growing due to increased investment in hyperscale and AI-ready data centers, wider adoption of cloud services, and rising demand for high-performance storage across government, financial services, telecommunications, and enterprise applications. Storage needs are shifting from conventional HDD-based and hybrid systems to all-flash arrays, NVMe SSDs, scalable object storage, and software-defined storage platforms. These technologies support AI training and inference, analytics, and the storage of large volumes of unstructured data.
Saudi Arabia and the UAE are key investment hubs in the region, driven by digital transformation initiatives, sovereign cloud requirements, and hyperscaler expansion. Qatar and other Gulf countries are also investing in local infrastructure to meet data residency requirements and support enterprise cloud adoption. These developments create opportunities for storage suppliers offering high-capacity, low-latency solutions with strong data protection, encryption, and efficient storage management capabilities. However, high equipment costs, power and cooling needs, supply constraints, and the challenge of integrating new storage platforms with existing infrastructure may slow adoption.
Middle East Data Center Storage Market Trends and Insights
IT and Telecom to Hold Significant Share
- The market is characterized by a shift toward software-defined infrastructure, enhancing scalability and agility. As the demand for seamless connectivity rises, telecom companies are poised for sustained expansion in storage equipment.
- The rollout of 5G networks is expected to strengthen the digital economy and increase demand for data center storage infrastructure. The arrival of 5G is expected to bring a major increase in speeds, low latencies, and an unforeseen level of network capabilities. This will set the stage for even more advanced and novel applications, enabling everything to be more connected in real-time.
- Telecom suppliers are encouraged to invest in the data center business by quickly rising 4G adoption and the impending 5G wave. In the United Arab Emirates, there were about 18.7 million active mobile phone subscribers as of March 2022, according to the UAE Telecommunications Regulatory Authority. This figure shows a slight rise from December 2020.
- According to an Ericsson Mobility 2020 estimate, there are likely to be 80 million 5G customers in MENA by 2025. This widespread use benefits companies and other technological advancements in the region and lays the groundwork for smart cities and worldwide communication. Furthermore, the telecom authority in the United Arab Emirates set an ambitious objective of 100% 5G penetration in the country by 2025 in order to become the Middle East's technically prominent player in the networking system.
- 5G is close to seven times better in terms of throughput compared to 4G, at 10 Gbs compared to 1.45 Gbs. With NVMe or SSD over HDD, such enterprise-level technology allows significant I/O throughput. The demand for NVMe is expected to increase in SSD servers and storage appliances, which is expected to drive the market during the forecast period.
Saudi Arabia to Witness Significant Growth
- The growth in data generated by the enterprise, coupled with the growing adoption of cloud technology, is expected to drive market studied in Saudi Arabia. Rapid cloud-based technology adoption is projected to help accelerate the country's digital transition while protecting mountains of data.
- With enticing investments from cloud providers such as Google and Oracle, the data center business has started to pick up steam. For instance, Oracle will work with NEOM Tech & Digital Holding Co. as the first tenant in the hyperscale data center at NEOM to serve Saudi Vision 2030. The data center will house Oracle Cloud Infrastructure (OCI), which would offer a high-performing, resilient platform for cloud services.
- The Saudi government has recognized the demand and accordingly outlined AI as a pillar of Vision 2030. This is part of the country’s strategy to evolve into a knowledge-based society, diversify its oil-based economy, and become a global hub for technological development.
- Around 70% of Vision 2030 strategic goals are closely related to AI. To achieve its mission, Saudi Arabia has led a concerted effort to advance its technological capabilities and to create a domestic AI-enabled digital ecosystem by 2030. The National Strategy for Data and Artificial Intelligence (NSDAI) will seek to attract USD 20 billion in foreign and local investments by 2030.
- Under Saudi Vision 2030, foreign investment is encouraged, particularly in the technology sector. The implementation of the cloud-first strategy in 2019 also accelerated the uptake of innovative technologies such as AI for Industrial 4.0. The Cloud Computing Regulatory Framework, which was adopted by the Communications and Technology Information Commission, intends to improve cloud computing services in the country and promote regulatory openness. Overall, it is expected that with an increase in big data volume through AI and other technology, the demand for data center construction will increase, leading to the major adoption of storage equipment.
Competitive Landscape
The Middle East data center storage market is fragmented among the players and has gained a competitive edge in recent years. Some of the major players are Dell Inc., Hewlett Packard Enterprise, and NetApp Inc., among others. These major players, with a prominent market share, focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability. For instance,
- March 2024: Western Digital expanded its product lineup with the introduction of a 24 TB WD Red Pro mechanical hard drive designed specifically for NAS (network attached storage) applications. The company launched a 24TB model earlier, targeted at enterprise and data center use.
- March 2024: Pure Storage launched advanced data storage technologies and services. The company announced new self-service capabilities across its Pure1 storage management platform and Evergreen portfolio, offering software-based solutions, all via a single platform experience, to global customers.
Middle East Data Center Storage Industry Leaders
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Dell Inc.
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Hewlett Packard Enterprise
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NetApp Inc.
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Huawei Technologies Co. Ltd.
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Kingston Technology Company Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2026: Ooredoo selected Oracle Alloy to deliver sovereign AI and cloud services to government and enterprise customers in Qatar. Ooredoo will operate these services from its local data centers. Source. This initiative supports demand for local storage infrastructure, data management solutions, and storage capacity for sovereign cloud workloads.
- January 2026: Syntys acquired Q Data QFZ in Qatar, adding 12.5 MW of hyperscale capacity, including 5 MW of operational capacity and 7.5 MW under development. Source. The acquisition expands regional infrastructure serving cloud and AI customers, potentially increasing demand for enterprise storage systems.
- January 2026: Dell Technologies. Dell Technologies introduced PowerStore 3.5, featuring PCIe Gen5 drives and enhanced predictive I/O placement capabilities. Dell Technologies Blog. The product reflects the ongoing development of faster enterprise storage systems for latency-sensitive workloads.
Middle East Data Center Storage Market Report Scope
Data center storage encompasses devices, hardware, networking equipment, and software technologies facilitating the storage of data and applications within data center facilities, which are used for storing, managing, retrieving, distributing, and backing up digital information within such facilities.
The Middle East data center storage market is segmented by storage technology (network attached storage (NAS), storage area network (SAN), and direct attached storage (DAS)), storage type (traditional storage, all-flash storage, hybrid storage), end user (IT & telecommunication, BFSI, government, media & entertainment, and other end users), and country. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Network Attached Storage (NAS) |
| Storage Area Network (SAN) |
| Direct Attached Storage (DAS) |
| Other Technologies |
| Traditional Storage |
| All-Flash Storage |
| Hybrid Storage |
| IT & Telecommunication |
| BFSI |
| Government |
| Media & Entertainment |
| Other End Users |
| Israel |
| Saudi Arabia |
| United Arab Emirates |
| By Storage Technology | Network Attached Storage (NAS) |
| Storage Area Network (SAN) | |
| Direct Attached Storage (DAS) | |
| Other Technologies | |
| By Storage Type | Traditional Storage |
| All-Flash Storage | |
| Hybrid Storage | |
| By End User | IT & Telecommunication |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End Users | |
| By Country | Israel |
| Saudi Arabia | |
| United Arab Emirates |
Key Questions Answered in the Report
How big is the Middle East Data Center Storage Market?
The Middle East Data Center Storage Market size is expected to reach USD 1.55 billion in 2026 and grow at a CAGR of 12.5% to reach USD 2.80 billion by 2031.
What is the current Middle East Data Center Storage Market size?
In 2026, the Middle East Data Center Storage Market size is expected to reach USD 1.55 billion.
Who are the key players in Middle East Data Center Storage Market?
Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Huawei Technologies Co. Ltd. and Kingston Technology Company Inc. are the major companies operating in the Middle East Data Center Storage Market.
What years does this Middle East Data Center Storage Market cover, and what was the market size in 2025?
In 2025, the Middle East Data Center Storage Market size was estimated at USD 1.36 billion. The report covers the Middle East Data Center Storage Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Middle East Data Center Storage Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
Middle East Data Center Storage Market Report
Statistics for the 2026 Middle East Data Center Storage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East Data Center Storage analysis includes a market forecast outlook for 2026 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
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