Middle East Data Center Storage Market Size, Share & Forecast to 2035
Market at a glance
The Middle East Data Center Storage market was worth USD 774.7 million in 2025 and is forecast to reach USD 2,870.0 million by 2035, growing at a 13.99% CAGR.
Key findings
Saudi residency rules keep storage and backup copies inside the Kingdom
AI data lakes push Huawei and VAST-style flash platforms into Gulf halls
Tight NAND supply raises array prices in 2026 and 2027
HUMAIN AI factories in Saudi Arabia
What is inside the report
- 01Introduction
- 02Executive Summary
- 03Market Scope and Estimate Comparison
- 04Market Drivers
- 05Market Trends
- 06Market Challenges
- 07Market Opportunities
- 08Pricing Analysis
- 09Standards and Regulation
- 10Market Segmentation
- 17chapters
- 2020-2024Historical period
- 2026-2035Forecast period
- —Companies profiled
Segmentation
Recent developments
Micron reported that NAND prices rose about 30% in a quarter and data center SSD revenue reached nearly USD 10 billion (Source: Micron).
Microsoft said Saudi Arabia East opens to customers in November 2026, and AWS said its Saudi region is on track for December 2026 (Source: Microsoft, Amazon).
MCIT reported Saudi operational data center capacity above 440 MW for 2025, up from 68 MW in 2021 (Source: MCIT).
Microsoft and G42 announced a 200 MW UAE expansion with Khazna Data Centers (Source: Microsoft).
Huawei launched an AI Data Lake storage solution for the Middle East and Central Asia in Dubai (Source: Huawei).
NetApp previewed Saudi data-boundary controls for Google Cloud NetApp Volumes (Source: NetApp).
Full analysis
The Middle East Data Center Storage Market is valued at USD 985.83 million in 2026 and is projected to reach USD 2.87 billion by 2035, up from USD 774.74 million in 2025, a CAGR of 13.99% from 2025 to 2035 (DC Market Insights estimate). Middle East data center storage covers the arrays, file and object systems, tape libraries, storage software and storage support bought for data center halls in the twelve countries from Turkey and Iran to the Gulf. Saudi rules decide much of the money: the National Cybersecurity Authority (NCA) Cloud Cybersecurity Controls require cloud providers to run storage, processing and disaster-recovery systems inside the Kingdom (Source: NCA), and Saudi operational data center capacity rose from 68 MW in 2021 to more than 440 MW in 2025 (Source: Ministry of Communications and Information Technology (MCIT)). The 2025 build receipt is 1,806 MW of average installed IT capacity × USD 0.36 million of storage spend per MW-year = USD 651.23 million, plus 112 MW of new AI capacity × USD 1.10 million = USD 123.51 million. Object storage grows fastest at 21.20% a year, and Saudi Arabia is the fastest region at 17.09% as Amazon Web Services (AWS) and Microsoft open in-Kingdom cloud regions in late 2026.
How Much Will Middle East Data Centers Spend on Storage in 2026?
Middle East data centers will spend USD 985.83 million on storage systems, storage software and storage services in 2026, 27.25% more than the USD 774.74 million of 2025, DC Market Insights estimates.
- Market size 2025: USD 774.74 million
- Market size 2026: USD 985.83 million
- Market size 2030: USD 2.00 billion
- Market size 2035: USD 2.87 billion
- CAGR 2025-2035: 13.99% (low case 10.99%, high case 15.99%)
- Largest storage type: All-Flash Arrays, 46% of 2025 value
- Fastest architecture: Object Storage, 21.20% CAGR
- Leading region: United Arab Emirates, 28% of 2025 value; fastest region: Saudi Arabia, 17.09% CAGR
- Largest country: United Arab Emirates, USD 216.93 million in 2025
- Market leaders: Dell Technologies, Huawei Technologies and NetApp, about 45% of external array spend together (DC Market Insights estimate)
Key Takeaways: Four Numbers Gulf Storage Buyers Should Watch
Four numbers explain where the USD 2.87 billion of 2035 Middle East data center storage spend comes from.
- All-flash arrays rise from 46% to 64% of Middle East data center storage value by 2035 because AI clusters in Abu Dhabi and Riyadh need flash throughput to keep graphics processing units (GPUs) busy.
- Hyperscale and Sovereign Cloud Providers grow 17.99% a year because Saudi and UAE residency rules move regulated data into in-country cloud regions.
- Saudi Arabia overtakes the United Arab Emirates by 2035, at 34% of value, because MCIT targets more than 1,300 MW of data center capacity before 2030.
- Enterprises and Financial Institutions grow only 8.59% a year because Gulf banks and conglomerates move workloads into colocation and cloud halls.
Executive Summary: How Gulf Sovereign Clouds Lift Middle East Storage Spend, 2020-2035
Middle East data center storage spend doubles from 2020 to 2025. The Middle East Data Center Storage Market size was valued at USD 385.83 million in 2020, reached USD 774.74 million in 2025, and is anticipated to reach USD 2.87 billion by 2035, at a CAGR of 13.99% during the forecast period. Growth from 2020 to 2025 ran at 14.96% a year because installed IT capacity in the region roughly doubled, from about 938 MW to 1,953 MW, while the first GPU halls in the UAE bought flash in bulk.
| Attribute | Detail |
|---|---|
| Historical period | 2020-2024 |
| Base year | 2025 |
| Forecast period | 2026-2035 |
| Market size 2025 | USD 774.74 million |
| Market size 2026 | USD 985.83 million |
| CAGR 2025-2035 | 13.99% |
| Market size 2035 | USD 2.87 billion |
DC Market Insights values installed-base storage refresh and expansion at USD 651.23 million in 2025 and AI cluster storage at USD 123.51 million; by 2035 the two lines reach USD 2.31 billion and USD 555.05 million. The Middle East storage rate per megawatt holds at USD 0.36 million in 2026 instead of falling, because flash prices rose sharply in 2026, and then declines about 3% a year to USD 0.27 million in 2035.

Which Storage Purchases Count in Middle East Data Center Halls?
The Middle East Data Center Storage Market counts USD 774.74 million of 2025 storage purchases inside data center halls. It covers storage equipment, software and support for halls run by cloud providers, telecom operators, colocation firms, enterprises and government centers in Saudi Arabia, the United Arab Emirates (UAE), Israel, Turkey, Qatar, Kuwait, Oman, Bahrain, Iran, Jordan, Iraq and Lebanon.
Included: all-flash and hybrid arrays, HDD-based systems, tape and archive libraries, Storage Area Network (SAN) and Network-Attached Storage (NAS) systems, scale-out file and object platforms, hyperconverged storage nodes, storage software (replication, snapshots, data protection) and storage support contracts.
Excluded: servers and GPUs, network switches, power and cooling (see the Middle East Data Center Market), public cloud storage subscriptions, loose solid-state drives (SSDs) and memory chips (see the NAND Flash and Enterprise SSD Market), and the rest of Africa. Four African markets that wider Middle East and Africa editions break out, Egypt, Algeria, Morocco and Nigeria, carry 0% of the USD 774.74 million here because each sits in the Africa editions: Egypt 0%, Algeria 0%, Morocco 0% and Nigeria 0% of 2025 value.
How the segments fit together: each of the four segment dimensions and the five regions adds up to the same total in every year, and the twelve countries add up to the five regions; the Data Center Storage Market gives the worldwide view, of which the Middle East holds about 3% in 2025.
Why Do Middle East Data Center Storage Market Estimates Differ?
DC Market Insights puts Middle East data center storage at USD 985.83 million in 2026. Published figures for 2025 run from under USD 1 billion to about USD 2 billion because they draw the boundary in different places.
Broader definitions add enterprise storage outside data center halls, cloud storage subscription revenue, storage sold into Egypt and the rest of Africa, and the SSDs and hard drives that server makers buy as components. The earlier DC Market Insights edition of the Middle East Data Center Storage Market used that wider basis and reached USD 1.89 billion for 2025, about 2.4 times this edition; this edition replaces it with a bottom-up figure of USD 774.74 million that counts only systems installed in Middle East halls. Operational infrastructure expansions by colocation firms, licensing localization requirements for cloud providers, supplier operational concentration in a few Gulf integrators, and the resource utilization, operating efficiency and operating locations, capabilities of each hall all shape the numbers but are counted only through the arrays they buy. Small and mid-sized enterprises (SMEs) that rent racks in colocation halls and buy their own arrays are in scope.
| Element | In this report | Why |
|---|---|---|
| Storage arrays, file and object systems | Yes (USD 526.82 million hardware 2025) | Core purchase |
| Storage software and support | Yes (USD 247.91 million in 2025) | Bought with the arrays |
| Loose SSDs, hard drives and memory chips | No | Component sales |
| Cloud storage subscriptions | No | Service revenue, not equipment |
| Egypt and North Africa | No | Covered by Africa editions |
Market Drivers: Why Are Gulf Data Centers Buying More Storage?
Three dated events add about USD 211.09 million of Middle East data center storage spend in 2026, DC Market Insights estimates. They are Saudi residency rules, two in-Kingdom hyperscale regions and the first 200 MW of Stargate UAE.
Saudi residency rules keep storage and backup copies inside the Kingdom
The NCA Cloud Cybersecurity Controls (CCC-1:2020) tell cloud providers to provide services from within Saudi Arabia, including the systems used for storage, processing and disaster recovery (Source: NCA). The UAE Personal Data Protection Law, Federal Decree-Law No. 45 of 2021, came into force on 2 January 2022 with its own cross-border transfer conditions (Source: UAE Government portal). DC Market Insights estimates that regulated buyers, government and finance, hold USD 340.88 million of 2025 Middle East data center storage spend, and every replicated copy they keep in-country is a second array.
AWS and Microsoft open in-Kingdom regions in late 2026
AWS committed more than USD 5.3 billion to a three-zone Saudi region in March 2024 and said in August 2026 that it is on track to launch in December 2026 (Source: Amazon). Microsoft said its Saudi Arabia East region in the Eastern Province opens to customers in November 2026 with data hosted locally (Source: Microsoft). DC Market Insights estimates that Saudi Arabia’s share of Middle East data center storage rises from 26% in 2025 to about 27% in 2026, the steepest one-year share gain of any Middle East country.
Stargate UAE brings 200 MW of GPU halls online in 2026
G42 and OpenAI plan a 1 GW Stargate UAE cluster in Abu Dhabi with 200 MW expected live in 2026, inside the 5 GW UAE-US AI Campus announced in May 2025 (Source: G42 release). At USD 1.08 million of storage per AI megawatt in 2026, that first phase alone carries about USD 216 million of flash and object storage (DC Market Insights estimate), and the Microsoft and G42 plan for a further 200 MW from Khazna Data Centers, announced in November 2025, adds a similar amount (Source: Microsoft).
Market Trends: How Is the Storage Stack Changing in Middle East Data Centers?
All-flash arrays rise from 46% to 64% of Middle East data center storage value by 2035 and object storage from 13% to 24%, DC Market Insights estimates, as AI and sovereign-cloud workloads reshape storage tiers.
AI data lakes push Huawei and VAST Data flash platforms into Gulf halls
Huawei launched an upgraded AI Data Lake Solution for the Middle East and Central Asia in Dubai on 15 October 2025 (Source: Huawei), and G42 chose the VAST Data Platform to store hundreds of petabytes for model training (Source: G42). All-Flash Arrays grow 17.82% a year from USD 356.38 million in 2025, while Hybrid Flash Arrays grow 8.01%.
Sovereign storage controls move into managed cloud services
NetApp previewed Saudi data-boundary controls for Google Cloud NetApp Volumes on 30 September 2025 (Source: NetApp), after Google Cloud opened its Dammam region in November 2023 (Source: Google Cloud). Storage Software grows 16.30% a year to USD 631.28 million by 2035 because residency, replication and key-management licences ride on each sovereign deployment.
Market Challenges: What Could Slow Middle East Data Center Storage Spending?
Two limits keep the 2035 base case of USD 2.87 billion about USD 545.13 million below the high case of USD 3.41 billion, DC Market Insights estimates: flash supply and conflict risk outside the Gulf.
Tight NAND supply raises array prices in 2026 and 2027
Micron Technology reported that negative-AND (NAND) flash prices rose about 30% quarter on quarter in its fiscal fourth quarter of 2026 and expects tight supply through 2027 and 2028 (Source: Micron prepared remarks, 30 September 2026). The Middle East data center storage model therefore holds the storage rate per installed megawatt flat at USD 0.36 million in 2026; buyers who delay array purchases by one year would push about USD 77.67 million of 2026 spend into 2027.
Conflict and sanctions cap spend in Iran, Iraq and Lebanon
Iran, Iraq and Lebanon together hold only 3.8% of 2025 Middle East data center storage value, and Iran grows just 5.92% a year because export controls limit access to Western arrays and support contracts. Israel grows 9.06% a year, slower than the Gulf, because its announced campus pipeline is far smaller than the 1,150 AI MW disclosed in Saudi Arabia and the UAE.
Market Opportunities: Which Gulf Storage Deals Are Still Open to Suppliers?
Two buyer groups hold 64% of 2035 Middle East data center storage spend, DC Market Insights estimates, and both are still open to new suppliers.
HUMAIN AI factories in Saudi Arabia
HUMAIN, the AI company of Saudi Arabia’s Public Investment Fund (PIF), and NVIDIA plan AI factories of up to 500 MW over five years, starting with an 18,000-unit GB300 system (Source: NVIDIA, 13 May 2025), and the AMD, Cisco and HUMAIN venture targets up to 250 MW in 2027 and 1 GW by 2030 (Source: AMD). At USD 1.0 to 1.1 million of storage per AI megawatt, those two programmes alone hold about USD 800 million of storage over 2026-2030 (DC Market Insights estimate).
Government recovery and sovereign-cloud storage
Government and Public Sector storage reaches USD 459.11 million by 2035. Oracle committed USD 14 billion over ten years in Saudi Arabia in May 2025 (Source: Oracle), and Microsoft has spent more than USD 4.6 billion of data center capital expenditure in the UAE by the end of 2025 (Source: Microsoft), so in-country replicas for ministries and state companies favour suppliers with local support and certified encryption.
What Do Gulf Operators Pay for Data Center Storage per Megawatt?
Middle East data centers spend about USD 0.36 million on storage per installed megawatt a year in 2025, plus about USD 1.10 million one-off per megawatt of new AI capacity, DC Market Insights estimates.
| Year | Storage spend per installed MW-year (USD million) | Storage per new AI MW (USD million) | Installed IT capacity (MW) |
|---|---|---|---|
| 2020 | 0.42 | 1.22 | 938 |
| 2025 | 0.36 | 1.10 | 1,953 |
| 2030 | 0.32 | 1.00 | 4,979 |
| 2035 | 0.27 | 0.90 | 8,820 |
Vendors do not publish Middle East array prices, so the rates are calibrated on the installed base and on AI cluster designs where storage is about 5% to 8% of cluster cost. NetApp’s all-flash revenue reached USD 4.18 billion in fiscal 2026, and Europe, the Middle East and Africa (EMEA) supplied 34% of NetApp’s USD 6.93 billion revenue (Source: NetApp results filing), a price-and-mix anchor for the flash tier.
Which Residency Laws Govern Middle East Data Center Storage?
Five rules decide where Middle East data center storage is installed and how it is replicated, touching an estimated USD 340.88 million of regulated-buyer spend in 2025.
- NCA Cloud Cybersecurity Controls (CCC-1:2020): storage, processing and disaster-recovery systems of cloud providers inside Saudi Arabia (Source: NCA).
- Saudi Personal Data Protection Law and its regulation on transfers outside the Kingdom (Source: Saudi Data and AI Authority, SDAIA).
- UAE Federal Decree-Law No. 45 of 2021 on personal data protection, in force 2 January 2022 (Source: UAE Government portal).
- Israel Privacy Protection Law and its database security regulations for stored personal data (Source: Israel Privacy Protection Authority).
- Turkey Personal Data Protection Law No. 6698 and its 2024 cross-border transfer amendment (Source: Personal Data Protection Authority, KVKK).
Market Segmentation: Which Array Type Carries the Value in Middle East Data Center Storage?
All-flash arrays lead with USD 356.38 million, 46% of 2025 value, and Object Storage is the fastest architecture at 21.20% a year, DC Market Insights estimates.
By Storage Type
All-Flash Arrays rise from 46% to 64% of Middle East data center storage value because GPU clusters and sovereign replicas need flash.
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| All-Flash Arrays | 356.38 | 46% | 1,836.45 | 17.82% |
| Hybrid Flash Arrays | 185.94 | 24% | 401.72 | 8.01% |
| HDD-Based Systems | 170.44 | 22% | 459.11 | 10.42% |
| Tape and Archive Libraries | 61.98 | 8% | 172.17 | 10.76% |
By Architecture
Storage Area Network (SAN) keeps the largest 2025 share at 40% of Middle East data center storage, the legacy of Gulf banking and government halls, but grows only 9.60% a year.
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Storage Area Network (SAN) | 309.90 | 40% | 774.75 | 9.60% |
| Network-Attached and Scale-Out File | 209.18 | 27% | 918.23 | 15.94% |
| Object Storage | 100.72 | 13% | 688.67 | 21.20% |
| Direct-Attached and Hyperconverged | 154.95 | 20% | 487.81 | 12.15% |
By Component
Storage Software grows fastest at 16.30% a year in Middle East data center storage because replication and encryption licences rise with residency rules.
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Hardware | 526.82 | 68% | 1,779.07 | 12.94% |
| Storage Software | 139.45 | 18% | 631.28 | 16.30% |
| Support and Managed Services | 108.46 | 14% | 459.11 | 15.52% |
By End User
Hyperscale and Sovereign Cloud Providers grow 17.99% a year to 48% of Middle East data center storage value by 2035.
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Hyperscale and Sovereign Cloud Providers | 263.41 | 34% | 1,377.34 | 17.99% |
| Telecom and Colocation Operators | 170.44 | 22% | 573.89 | 12.91% |
| Government and Public Sector | 139.45 | 18% | 459.11 | 12.65% |
| Enterprises and Financial Institutions | 201.43 | 26% | 459.11 | 8.59% |
DC Exclusive: Gulf Sovereign Region and AI Campus Storage Tracker, 9 Projects and 1,150 AI MW
Nine Gulf cloud regions and AI campuses carry about USD 1.24 billion of storage. The Gulf Sovereign Region and AI Campus Storage Tracker is a DC Market Insights model built on 11 inputs that converts these announced Middle East projects into storage value: the 1,150 MW of disclosed AI capacity carries about USD 1.24 billion of storage at the 2026 rate of USD 1.08 million per AI megawatt.
| Project | Location | Disclosed scale and timing | Storage value (DC Market Insights estimate) | Source |
|---|---|---|---|---|
| Stargate UAE, first phase (G42, OpenAI) | Abu Dhabi | 200 MW live in 2026 | USD 216.2 million | G42 |
| Microsoft and G42 expansion at Khazna Data Centers | UAE | 200 MW from end-2026 | USD 216.2 million | Microsoft |
| HUMAIN and NVIDIA AI factories | Saudi Arabia | Up to 500 MW over five years | USD 540.5 million | NVIDIA |
| AMD, Cisco and HUMAIN venture | Saudi Arabia | Up to 250 MW in 2027 | USD 270.3 million | AMD |
| center3 (stc) capacity plan | Saudi Arabia | 300 MW installed by 2027 | USD 108.2 million | center3 |
| AWS Saudi region, 3 zones | Saudi Arabia | USD 5.3 billion, December 2026 | In installed base | Amazon |
| Microsoft Saudi Arabia East, 3 zones | Eastern Province | November 2026 | In installed base | Microsoft |
| Oracle Saudi Arabia programme | Saudi Arabia | USD 14 billion over 10 years | In installed base | Oracle |
| AWS Israel (Tel Aviv) region | Israel | Up to ILS 26.6 billion, 2023-2037 | In installed base | AWS |
The tracker counts AI megawatts at USD 1.08 million each and the center3 plan as conventional capacity at USD 0.36 million per MW-year; the four cloud regions do not disclose megawatts, so their storage sits inside the installed-base line. Saudi projects hold 71% of the disclosed AI megawatts, which is why Saudi Arabia becomes the largest Middle East storage country by 2035.
Regional Insights: Why Does Saudi Arabia Overtake the UAE in Middle East Data Center Storage?
The United Arab Emirates leads with USD 216.93 million, 28% of 2025 value, DC Market Insights estimates. Saudi Arabia is the fastest-growing region at 17.09% a year and leads by 2035.
| Region | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Saudi Arabia | 201.43 | 26% | 975.62 | 17.09% |
| United Arab Emirates | 216.93 | 28% | 918.23 | 15.52% |
| Other GCC States | 100.72 | 13% | 344.34 | 13.08% |
| Israel | 108.46 | 14% | 258.25 | 9.06% |
| Turkey and Rest of Middle East | 147.20 | 19% | 373.03 | 9.74% |
Saudi Arabia
MCIT counts more than 440 MW of operational capacity in 2025 against a target above 1,300 MW before 2030, and the AWS and Microsoft regions open in late 2026. Data center storage spend here rises from USD 201.43 million in 2025 to USD 975.62 million in 2035, a CAGR of 17.09%.
United Arab Emirates
Abu Dhabi’s Stargate UAE and the Microsoft and G42 expansion add 400 MW of GPU halls from 2026, while Dubai keeps the largest colocation base. Data center storage spend here rises from USD 216.93 million in 2025 to USD 918.23 million in 2035, a CAGR of 15.52%.
Other GCC States
Qatar, Kuwait, Oman and Bahrain host Microsoft, Google and AWS cloud regions that serve government and energy buyers under local residency rules. Data center storage spend here rises from USD 100.72 million in 2025 to USD 344.34 million in 2035, a CAGR of 13.08%.
Israel
The AWS Tel Aviv region opened in August 2023 with three zones, and Google and Microsoft regions serve defence-adjacent and financial buyers. Data center storage spend here rises from USD 108.46 million in 2025 to USD 258.25 million in 2035, a CAGR of 9.06%.
Turkey and Rest of Middle East
Istanbul and Ankara colocation halls carry most of this region, while Iran, Iraq, Jordan and Lebanon stay small because of sanctions and conflict. Data center storage spend here rises from USD 147.20 million in 2025 to USD 373.03 million in 2035, a CAGR of 9.74%.
Which Middle East Countries Buy the Most Data Center Storage?
The United Arab Emirates is the largest country with 28% of 2025 Middle East data center storage value, DC Market Insights estimates. Saudi Arabia is the fastest large country at 17.09% a year, and Oman grows 13.99% a year on new Muscat and Salalah halls.
| Rank | Country | Region | 2025 (USD million) | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|---|
| 1 | United Arab Emirates | United Arab Emirates | 216.93 | 918.23 | 15.52% |
| 2 | Saudi Arabia | Saudi Arabia | 201.43 | 975.62 | 17.09% |
| 3 | Israel | Israel | 108.46 | 258.25 | 9.06% |
| 4 | Turkey | Turkey and Rest of Middle East | 108.46 | 286.95 | 10.22% |
| 5 | Qatar | Other GCC States | 34.86 | 114.78 | 12.65% |
| 6 | Kuwait | Other GCC States | 23.24 | 80.34 | 13.21% |
| 7 | Oman | Other GCC States | 23.24 | 86.08 | 13.99% |
| 8 | Bahrain | Other GCC States | 19.37 | 63.13 | 12.54% |
| 9 | Iran | Turkey and Rest of Middle East | 19.37 | 34.43 | 5.92% |
| 10 | Jordan | Turkey and Rest of Middle East | 9.30 | 25.83 | 10.76% |
| 11 | Iraq | Turkey and Rest of Middle East | 6.20 | 17.22 | 10.76% |
| 12 | Lebanon | Turkey and Rest of Middle East | 3.87 | 8.61 | 8.31% |
Forecast Scenarios: Where Could Middle East Data Center Storage Land in 2035?
The Middle East Data Center Storage Market reaches between USD 2.20 billion and USD 3.41 billion by 2035, with a base case of USD 2.87 billion, DC Market Insights estimates.
| Scenario | 2035 value | CAGR 2025-2035 | What has to happen |
|---|---|---|---|
| Low | USD 2.20 billion | 10.99% | AI campuses slip two years; NAND prices stay high and buyers stretch refresh cycles |
| Base | USD 2.87 billion | 13.99% | About 8,820 MW installed by 2035; AI share of new capacity 70% |
| High | USD 3.41 billion | 15.99% | Stargate UAE reaches 1 GW and HUMAIN builds its full pipeline on schedule |
Key Players and Market Share: Which Vendors Hold Middle East Data Center Storage?
Three vendors hold about 45% of Middle East external array spend, DC Market Insights estimates: Dell Technologies, Huawei Technologies and NetApp. The estimate rests on installed systems in Gulf cloud, telecom and government halls.
- Dell Technologies
- Huawei Technologies
- NetApp
- Hewlett Packard Enterprise (HPE)
- Everpure (formerly Pure Storage)
- IBM
- Hitachi Vantara
- Lenovo
- Nutanix
- VAST Data
- Commvault
- Oracle
- Core42
- center3
- Khazna Data Centers
Dell’s storage revenue was USD 16.6 billion in fiscal 2026 and Dell says it doubled its operational footprint in Saudi Arabia over two years (Source: Dell). Everpure, the new name of Pure Storage, reported fiscal 2026 revenue of USD 3.66 billion, up 16% (Source: Everpure), and signed a memorandum with Saudi integrator Virtual Vision in February 2025 (Source: Virtual Vision). Huawei says stc group is deploying OceanStor Dorado all-flash storage in Saudi Arabia (Source: Huawei). Core42, center3 and Khazna Data Centers buy arrays and resell storage as part of sovereign cloud and colocation services.
Recent Developments: What Changed for Middle East Data Center Storage in 2025 and 2026?
Six dated events since September 2025 moved Middle East data center storage demand and prices.
- In September 2026, Micron Technology reported that negative-AND (NAND) flash prices rose about 30% in a quarter and data center SSD revenue reached nearly USD 10 billion (Source: Micron).
- In August 2026, Microsoft said Saudi Arabia East opens to customers in November 2026, and AWS said its Saudi region is on track for December 2026 (Source: Microsoft, Amazon).
- In April 2026, MCIT reported Saudi operational data center capacity above 440 MW for 2025, up from 68 MW in 2021 (Source: MCIT).
- In November 2025, Microsoft and G42 announced a 200 MW UAE expansion with Khazna Data Centers (Source: Microsoft).
- In October 2025, Huawei launched an AI Data Lake storage solution for the Middle East and Central Asia in Dubai (Source: Huawei).
- In September 2025, NetApp previewed Saudi data-boundary controls for Google Cloud NetApp Volumes (Source: NetApp).
Research Methodology: How the Model Counts Middle East Storage Megawatt by Megawatt
The 2025 base of USD 774.74 million is built bottom-up from 1,953 MW of installed IT capacity. The Middle East data center storage model multiplies 16 years of installed IT capacity (about 938 MW in 2020, 1,953 MW in 2025 and 8,820 MW in 2035, 1.5% retired each year) by a storage rate per MW-year, and adds new AI megawatts (35% of 320 MW in 2025, 70% of 880 MW in 2035) times a storage rate per AI megawatt. The 2025 receipt is USD 651.23 million + USD 123.51 million = USD 774.74 million. Bound checks: (1) ceiling — 2025 storage spend is 9.7% of the USD 8.00 billion Middle East Data Center Market, a normal share for storage inside a data center budget; (2) ceiling — the 2025 total equals 4.7% of Dell’s fiscal 2026 storage revenue of USD 16.6 billion, one of more than ten array suppliers selling into the region; (3) floor — Saudi Arabia’s more than 440 MW × USD 0.36 million = USD 158.71 million, below the Saudi line of USD 201.43 million. Saudi capacity is cross-checked with the KSA Data Center Market. Model limitations, standard assumptions: there is no regression; scenario sensitivity comes from the low and high cases; operational concentration risk among the three leading vendors is not modelled; sales via intermediaries, partner channels and Gulf integrators are counted at end-user value; and instability and infrastructure damage in Iran, Iraq and Lebanon show only in their low growth rates. Investment highlights, strategic conclusions for buyers sit in the Key Takeaways above. See our research methodology.
Table of contents
- 01Introduction
- 1.1Market Definition and Scope
- 1.2Research Methodology
- 02Executive Summary
- 2.1Market Snapshot, 2025, 2026 and 2035
- 2.2Key Market Statistics
- 2.3Key Takeaways
- 03Market Scope and Estimate Comparison
- 3.1Included and Excluded Spend
- 3.2Why Estimates Differ
- 04Market Drivers
- 4.1Saudi Residency Rules
- 4.2AWS and Microsoft In-Kingdom Regions
- 4.3Stargate UAE First Phase
- 05Market Trends
- 5.1AI Data Lakes and All-Flash Platforms
- 5.2Sovereign Storage Controls in Managed Cloud
- 06Market Challenges
- 6.1Tight NAND Supply
- 6.2Conflict and Sanctions Outside the Gulf
- 07Market Opportunities
- 7.1HUMAIN AI Factories
- 7.2Government Recovery and Sovereign-Cloud Storage
- 08Pricing Analysis
- 8.1Storage Spend per MW, 2020-2035
- 09Standards and Regulation
- 9.1NCA Cloud Cybersecurity Controls
- 9.2Saudi Personal Data Protection Law
- 9.3UAE Federal Decree-Law No. 45 of 2021
- 9.4Israel Privacy Protection Law
- 9.5Turkey Personal Data Protection Law No. 6698
- 10Market Segmentation
- 10.1By Storage Type
- 10.2All-Flash Arrays
- 10.3Hybrid Flash Arrays
- 10.4HDD-Based Systems
- 10.5Tape and Archive Libraries
- 10.6By Architecture
- 10.7Storage Area Network (SAN)
- 10.8Network-Attached and Scale-Out File
- 10.9Object Storage
- 10.10Direct-Attached and Hyperconverged
- 10.11By Component
- 10.12Hardware
- 10.13Storage Software
- 10.14Support and Managed Services
- 10.15By End User
- 10.16Hyperscale and Sovereign Cloud Providers
- 10.17Telecom and Colocation Operators
- 10.18Government and Public Sector
- 10.19Enterprises and Financial Institutions
- 11DC Exclusive: Gulf Sovereign Region and AI Campus Storage Tracker
- 11.1Nine Projects and 1,150 AI MW
- 11.2Storage Value by Project
- 12Regional Insights
- 12.1Saudi Arabia
- 12.2United Arab Emirates
- 12.3Other GCC States
- 12.4Israel
- 12.5Turkey and Rest of Middle East
- 13Country Analysis
- 13.1United Arab Emirates
- 13.2Saudi Arabia
- 13.3Israel
- 13.4Turkey
- 13.5Qatar
- 13.6Kuwait
- 13.7Oman
- 13.8Bahrain
- 13.9Iran
- 13.10Jordan
- 13.11Iraq
- 13.12Lebanon
- 14Forecast Scenarios
- 14.1Low Scenario
- 14.2Base Scenario
- 14.3High Scenario
- 15Competitive Insights
- 15.1Dell Technologies
- 15.2Huawei Technologies
- 15.3NetApp
- 15.4Hewlett Packard Enterprise (HPE)
- 15.5Everpure (formerly Pure Storage)
- 15.6IBM
- 15.7Hitachi Vantara
- 15.8Lenovo
- 15.9Nutanix
- 15.10VAST Data
- 15.11Commvault
- 15.12Oracle
- 15.13Core42
- 15.14center3
- 15.15Khazna Data Centers
- 16Recent Developments
- 16.1Developments, September 2025 to September 2026
- 17Research Methodology
- 17.1Capacity Model and Receipt
- 17.2Bound Checks
- Fig. 11. Middle East Data Center Storage Market Size, 2020-2035
- Table 11. Market Snapshot, 2025, 2026 and 2035
- Table 22. Scope Comparison
- Table 33. Storage Spend per MW, 2020-2035
- Table 44. Market by Storage Type, 2025 and 2035
- Table 55. Market by Architecture, 2025 and 2035
- Table 66. Market by Component, 2025 and 2035
- Table 77. Market by End User, 2025 and 2035
- Table 88. Gulf Sovereign Region and AI Campus Storage Tracker
- Table 99. Market by Region, 2025 and 2035
- Table 1010. Top 12 Countries, 2025 and 2035
- Table 1111. Forecast Scenarios, 2035
About this report
Written by Amit Jain and reviewed by Deepti Agrawal, Senior Editor, Research. Figures are built top-down and bottom-up and reconciled before publication, with 2025 as the base year.
Read our methodologyHow we built this
- Historical period2020-2024
- Base year2025
- Forecast period2026-2035
- Sizing approachTop-down + bottom-up
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Due diligence, site selection and market entry work, by the analysts who wrote this report.
See consulting servicesFrequently asked questions
USD 985.83 million in 2026, up 27.25% from USD 774.74 million in 2025, according to DC Market Insights estimates. The market is projected to reach USD 2.87 billion by 2035, a CAGR of 13.99% from 2025.
13.99% a year from 2025 to 2035, after 14.96% a year from 2020 to 2025, because installed IT capacity in the region grows from about 1,953 MW to 8,820 MW and 70% of new capacity is built for AI by 2035.
About USD 0.36 million per installed megawatt a year in 2025, plus about USD 1.10 million one-off per megawatt of new AI capacity (DC Market Insights estimate). The installed-base rate stays flat in 2026 because NAND flash prices rose about 30% in a quarter.
All-flash arrays, with USD 356.38 million or 46% of 2025 value, rising to 64% by 2035. Object storage is the fastest architecture at 21.20% a year as AI data lakes and backup copies grow.
The United Arab Emirates, with USD 216.93 million in 2025. Saudi Arabia grows faster at 17.09% a year and reaches USD 975.62 million by 2035, ahead of the UAE, as AWS and Microsoft open in-Kingdom regions.
Yes for cloud providers: the NCA Cloud Cybersecurity Controls require storage, processing and disaster-recovery systems inside Saudi Arabia. DC Market Insights estimates that government and financial buyers held USD 340.88 million of 2025 regional storage spend.
About USD 1.24 billion for the 1,150 MW of disclosed AI capacity in Stargate UAE, the Microsoft and G42 expansion and HUMAIN’s programmes, at USD 1.08 million of storage per AI megawatt in 2026 (DC Market Insights estimate).
Dell Technologies, Huawei Technologies and NetApp hold about 45% of external array spend together (DC Market Insights estimate). HPE, Everpure (formerly Pure Storage), IBM, Hitachi Vantara, Lenovo, Nutanix, VAST Data and Commvault also compete.
Hyperscale and Sovereign Cloud Providers, at 17.99% a year from USD 263.41 million in 2025 to USD 1.38 billion in 2035, as regulated data moves into in-country cloud regions.
The 2026 figure of USD 985.83 million counts only storage systems, software and support in Middle East data center halls. Wider estimates add enterprise storage outside data centers, cloud storage subscriptions, loose drives and Egypt; the earlier DC Market Insights edition was about 2.4 times larger on that basis.
USD 123.51 million in 2025, from 112 MW of new AI capacity at USD 1.10 million per MW. The rest, USD 651.23 million, was installed-base storage refresh and expansion, from 1,806 MW of average installed IT capacity at USD 0.36 million per MW-year.
It counts USD 774.74 million of 2025 purchases: arrays, file and object systems, tape libraries, storage software and support in data center halls across twelve countries. It excludes servers, GPUs, loose SSDs, memory chips, public cloud storage subscriptions and Africa, including Egypt.
USD 201.43 million in 2025, rising to USD 975.62 million by 2035 at a CAGR of 17.09%. Saudi Arabia ranks second behind the UAE in 2025, and its growth is the fastest of any region in the Middle East.
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