Africa & Middle East Data Center Colocation Data Report 2026: Market to Reach $11.1 Billion by 2030 with South Africa, Nigeria, Kenya, Egypt, UAE, Saudi Arabia, Qatar, Bahrain, and Kuwait Leading
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
Infrastructure & Regulatory Environment
Power Grid Access and Energy Mix
Government Policy and Data Localization
Barriers to Expansion
A Bundled Offering, Combining the Following 4 Reports, Covering 192 Tables and 224 Figures:
Key Attributes:
Report Scope for Each Report
Data Center Market Overview
Data Center Colocation Market Size and Forecast
Colocation Market by Service Type
Colocation Market by Facility Architecture
Colocation Market by Customer Segment
Artificial Intelligence Colocation Market
Non-Artificial Intelligence Colocation Market
Colocation Market by End-Use Sector
Data Center Capacity Pipeline
Data Center Operational Efficiency Metrics
Data Center Financial and Investment Metrics
For more information about this report visit https://www.researchandmarkets.com/r/prynu0
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