Knight Frank – Data Centres The MENA Report, 3Q 2023

According to Knight Frank's report, the Middle East and North African markets have immense potential for data centre growth. The young demographic in the region is comfortable with technology and embraces it for various purposes. There is also a significant level of digital adoption in both society and businesses, with e-commerce growing by a third annually and digital payments expected to grow at a double-digit rate over the next five years. Moreover, the region is becoming a global hub for next-generation technologies. For instance, the UAE Government has adopted blockchain technology for its transactions, and the use of Artificial Intelligence (AI) has the potential to boost economic growth in the MENA region. Cloud deployment and hyperscale interest from both the United States and Asia are expanding into the Middle East, creating opportunities for data centre providers and new developers to build state-of-the-art data centres. The region is also focused on developing a "green" infrastructure approach, with projects such as the DEWA innovation hub and a 1.2GW solar farm to support sustainability. Although there are challenges and barriers to entry, such as foreign entity ownership restrictions and power availability concerns, the region shows potential for economic diversification, improved education access, and increased connectivity. Knight Frank's report offers insights into the primary data centre hubs in the region, and they are experiencing a growing demand for their services, with ongoing mergers and acquisitions and land acquisitions. They are open to collaborating with businesses interested in exploring the opportunities in the MENA data centre market.