The US Data Center Market is Projected to reach $110.21 Billion by 2028, Data Center Market Set to Reach New Heights Across Middle East, APAC, US, Southeast Asia, Africa, & Latin America - Arizton

Arizton provides an in-depth market insights report on the Middle East data center market, APAC data center market, US data center market, Southeast Asia data center market, Africa data center market, and Latin America data center market.

These reports provide a comprehensive and current market scenario of the data center market across various regions, including market size, anticipated market forecast, relevant market segmentations, and industry trends.  

The Middle East data center market will reach $7.94 billion by 2028, growing with a CAGR of 8.5% from 2022-2028. 

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The governments in Middle East countries have taken various policies and initiatives for the development and deployment of AI-based technology. The adoption of Artificial Intelligence has increased across different fields, which include education, healthcare, finance, commerce, and related industries. Countries across the globe have started adopting AI for several operations. The data center market is witnessing substantial growth in advanced technology adoption, such as AI & ML. Data centers increasingly use AI to control the power grid and distribution in data centers. AI can help operators identify the best time to generate, store, and use the energy produced. This also gives operators the added benefit of being able to handle power generation and supply remotely. In the Middle Eastern Region, the UAE and Saudi Arabia are the major countries that have witnessed the large-scale adoption of Artificial Intelligence technology.

Key Highlights

The Middle East data center market witnessed investments from telecommunication companies, colocation data center operators, and cloud providers.

Dubai, Abu Dhabi, Riyadh, Jeddah, Neom, Istanbul, and Kuwait City are the major locations for data center development. In contrast, Doha and Sharjah were emerging as new locations for data center development.

Regarding 5G network deployment, the UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Turkey, Israel, and Qatar have witnessed 5G network deployments on a commercial and trial basis.

The market also attracted investments from cloud service providers such as Google, Amazon Web Services, Microsoft, Oracle, and Tencent across the Middle East. Major cloud service providers are expanding their presence in the region during the forecast period. For instance, in August 2022, Microsoft established its first data center region in Qatar

Initiatives for developing smart cities are observed in the UAE, Saudi Arabia, Kuwait, Oman, and Bahrain. For instance, in Saudi Arabia, NEOM is a $50 million smart city project expected to reach completion by 2025.

The APAC data center market will reach $96.85 billion by 2028, growing at a CAGR of 5.5% during 2022-2028.

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The APAC data center market is among the top markets globally in terms of growth, led by governments' support for data center development, expansion of multiple industrial zones, the rapid development of submarine cable connectivity, investments by cloud service providers, entry of global colocation operators in the region for joint ventures (JVs). It is expected that APAC will witness the implementation of edge computing across various territories, particularly China and India, to accommodate the region's data growth, which will further fuel hyperscale data center investments for centralized data storage and computation.

Key Highlights:

In 2022, data center investments in the region grew significantly, driven by growth in internet users, increased use of social media, high smartphone penetration, adoption of cloud services, and the need for enterprises to migrate from server room environments to data centers.

The market also witnesses significant investments from cloud services providers, such as Google, Facebook, Alibaba, Tencent Cloud, AWS, aand Microsoft. The growth in investments from cloud services providers is expected to accelerate with the demand for cloud shifts from business and government organizations across the region.

Local colocation providers in various countries also increase their presence by constructing additional data centers, thus boosting market growth. Huawei leads the modular data center infrastructure market in APAC.

Telecommunication service providers, enterprises, and government entities invest in multiple submarine cable projects to increase the average broadband speed and provide better interconnectivity among data centers.

The US data center market will reach $110.21 billion by 2028, growing at a CAGR of 3.6% during 2022-2028.

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In 2022, the US data center construction witnessed over 25 data center projects from hyperscalers such as Microsoft, Google, Meta (Facebook), Amazon Web Services, and Apple. Meta (Facebook) led the market with investment in around 11 data center facilities in 2022, followed by Microsoft in around eight data center projects. Google was involved in four projects, and Amazon Web Services in three data center projects. However, hyperscale investments are expected to slow down after 2023 in the US, with hyperscale providers likely to focus on establishing multiple edge locations owing to the implementation of 5G. The US is expected to lead the market for edge computing capacity, with plans to establish hundreds of such facilities by telecommunication and new edge data center market entrants.

Southwestern and Midwestern will lead future investments as states such as Texas, Ohio, Iowa, Nebraska, and Illinois will witness significant data center construction in the coming years. However, the Northeastern US will witness lower hyperscale investments due to constraints associated with space in locations such as New York and New Jersey.

Key Highlights:

The US government promotes data center investments through various initiatives, such as increasing the availability of land for development, reducing electricity tariffs, and enabling the procurement of renewable energy. Thus, such initiatives will drive market growth during the forecast period.

Digitalization across businesses will contribute to a surge in data center investments by colocation, cloud, Internet, and telecommunication providers. Telecom companies such as AT&T, T-Mobile, CenturyLink, and Qualcomm are responsible for the deployment and introduction of 5G services in the US.

The Southeast Asia data center market will reach $14.19 billion by 2028, growing at a CAGR of 6.6% during 2022-2028.  

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The Southeast Asia data center market has been growing significantly, with a major contribution from countries such as Indonesia, Malaysia, and Thailand. In 2022, the moratorium on data center construction in Singapore was lifted, with the pilot phase relating to sustainable data center development currently underway. Once this phase is deemed successful, it will result in strong growth in Singapore from 2024. The region is also witnessing edge data center investments across several cities. For instance, in August 2022, Edge Centres announced the development of its EC61 (Chiang Mai) edge facility in Thailand. The company also has plans to deploy additional facilities, namely, EC63 (Khon Kaen) and EC62 (Phuket)

Key Highlights

In 2022, in Southeast Asia, the colocation market was dominated by companies such as Digital Realty, Equinix, FPT Telecom, Iron Mountain, ST Telemedia Global Data Centres, and Big Data Exchange (BDx). Several telecommunication operators also invested in developing colocation data center facilities in the region in 2022.

With the construction of additional data centers, local colocation providers in Southeast Asia are expanding their presence, thus boosting the market. Government agencies in Southeast Asia across cities are actively engaged in data center growth to digitize their operations.

The Africa data center market by investment to reach $4.92 billion by 2028, growing at a CAGR of 10.25%. 

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In Africa, South Africa is the major contributor to the capacity in the region, with more than 50%, and is followed by Nigeria, Kenya, and other African countries. Cloud-based services, smart city developments, and fiber connectivity are other factors driving continuous regional data center investments. The region's major global cloud service providers include Amazon Web Services, Microsoft, Google, Oracle, and Huawei Technologies. For instance, in September 2022, Google announced its plan to open a new cloud region in Cape Town, South Africa. The cloud region is expected to be operational in the next 2-3 years. 

Key Highlights:

In Africa, South Africa is the major contributor to the capacity in the region, with more than 50%, and is followed by Nigeria, Kenya, and other African countries. Cloud-based services, smart city developments, and fiber connectivity are other factors driving continuous regional data center investments.

The region's major global cloud service providers include Amazon Web Services, Microsoft, Google, Oracle, and Huawei Technologies. For instance, in September 2022, Google announced its plan to open a new cloud region in Cape Town, South Africa. The cloud region is expected to be operational in the next 2-3 years.

The presence of industrial parks, the availability of land, and the government's support motivate data center operators to develop data centers in the African region. For instance, Kasi Cloud bought four hectares of land to set up a cloud data center in Maiyegun, Lekki, an important commercial hub for multiple businesses. It is also the headquarters of national and global corporations and is well-connected internally and externally.

The Latin America data center market is estimated to reach $8.81 billion by 2028, growing with a CAGR of 8.14% during the forecast period.  

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As the Latin America data center market continues its remarkable growth, our report will equip you with invaluable insights and strategic guidance to navigate this dynamic landscape. Be part of the data center revolution in Latin America and propel your business toward unparalleled success. Embrace the power of persuasion and seize the moment to position yourself as a frontrunner in this rapidly expanding market. 

Key Highlights:

In 2022, Brazil led the Latin America data center construction market by over 45% of the market share in investments, followed by Mexico, Chile, and Colombia.

Some major data center service providers engaged in constructing data center facilities in 2022 include Ascenty, Equinix, Scala Data Centers, ODATA, and HostDime.

In 2022, regional and international colocation operators and telecommunication service providers invested in data centers. The adoption of Big data, IoT, 5G deployment, and the cloud are some key drivers for the Latin America data center construction market.

Cloud service providers, such as Google, AWS, Microsoft, Oracle, IBM, and Tencent, invest in the market. Major cloud service providers will increase their presence in the area during the forecast period.

Why Do You Buy this Research Reports?

Market Dynamics: Market Opportunities & Trends, Market Growth Enablers, Market Restraints 

Segments Covered: Facility Type, IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, and Tier Standards 

Market Participants: IT Infrastructure Providers, Support Infrastructure Providers, Data Center Contractors & Subcontractors, Data Center Investors and New Entrants. 

Buy these Reports Now:
Middle East data center market
https://www.focusreports.store/report/middle-east-data-center-market-focused-insights

APAC data center market
https://www.focusreports.store/report/apac-data-center-market-focused-insights

US data center market
https://www.focusreports.store/report/united-states-data-center-market-focused-insights

Southeast Asia data center market
https://www.focusreports.store/report/southeast-asia-data-center-market-focused-insights

Africa data center market
https://www.focusreports.store/report/southeast-asia-data-center-market-focused-insights

Latin America data center market
https://www.focusreports.store/report/latin-america-data-center-market-focused-insights

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