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MEA Market for Data Center Outsourcing Seen to Expand

by: Sarah Joson

Friday, July 11, 2014 |

More and more data center facilities are being constructed in Turkey, South Africa, and Saudi Arabia. A report stated that the increase in data center facilities in the Middle East and Africa (MEA) region aims to address the impending expansion of their respective local data center markets.

A couple of years ago, MEA countries were seen outsourcing IT and computing processes offshore, but since more and more data centers will be operating domestically, outsourcing is expected to drop, the market in these areas will rise, and is expected to grow at a CAGR of 10.55 percent from 2013-2018.

Even with the risks and issues such as the need for high capital investment in establishing data centers and proper cooling systems that will protect the facilities from harsh climates in the MEA region, the market is expected to keep on growing. Some of the factors that are predicted to contribute to the growth are the mass volume of digital content produced on a daily basis, as well as the increase in the use of cloud technology in Gulf countries.   

However, new trends are slowly gaining traction in the segment. One of which is the adoption of eco-friendly data center solutions. Green computing and having sustainable facilities are increasing among corporations and end users around the world.  As a result, the types of services demanded in the market are also evolving.

Data center hardware vendors have been seen working on ways to develop innovative, high-power, and ecological equipment and management solutions. Moreover, economizer technology services are being developed to reduce operational costs of data centers.


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