Trends, Growth, and Opportunity Analysis of Data Center Facility in Morocco

Morocco Data Center Facility Sales Outlook (2023 to 2033)

The Data Center Facility Industry size reached US$ 93.5 million in 2018. Demand for data center facilities recorded Y-o-Y growth of 5.8% in 2022 and thus is expected to reach US$ 124.6 million in 2023. Over the projection period 2023 to 2033, data center facility solutions globally are projected to exhibit 7.6% CAGR and a total size of US$ 259.9 million by 2033.

Morocco is emerging as a developing space for data center installations, with growing demand driven by cloud adoption, IoT growth, and digital transformation initiatives. The industry includes a mix of global data center workers and local vendors. Worldwide companies are showing interest in creating a presence in the country. Morocco's geographical location at the junction of Africa, Europe, and the Middle East makes it a potential strategic hub for data centers serving both native businesses and those in neighboring regions.

Efforts have been made to advance critical infrastructure, counting power, and high-speed Internet connectivity to meet the needs of modern data centers. Morocco's pledge to renewable energy sources, especially solar and wind, has allowed data centers to implement sustainable, cost-effective energy solutions.

The Moroccan government has implemented strategies and incentives to attract investment in the ICT sector, containing data center infrastructure. These initiatives are designed to support the development of the digital economy. Data compliance and security with global standards are essential in the data center facility. Vendors have focused on implementing strong security measures to protect against cyber threats.

The rise of IoT applications and the want for low-latency treatment has sparked interest in edge computing solutions, hypothetically leading to the creation of edge data centers. Economic stability and currency stability have played a role in prompting investment in the data center sector.

Attributes	Key Insights
Data Center Facility in Morocco Size (2022A)	US$ 117.5 million
Data Center Facility in Morocco Estimated Size (2023E)	US$ 124.6 million
Projected Data Center Facility in Morocco Valuation (2033F)	US$ 259.9 million
Value-based CAGR (2023 to 2033)	7.6%

Historical Performance of Data Center Facility in Morocco

From 2018 to 2022, the data center facility experienced a CAGR of 5.9%, reaching a size of US$ 124.6 million in 2023. The data center facility space is expected to rise at a CAGR of 7.6% from 2023 to 2033. The ecosystem is expected to reach US$ 259.9 million during the forecast period.

Historical Value (2022)	US$ 117.5 million
Historical CAGR (2018 to 2022)	5.9%

Morocco is a country that is located in the North Africa region. The location of Morocco makes it an ideal geographic location for edge centers. The Moroccan government has shown interest in promoting the digital economy and ICT sector. Incentives and favorable policies can attract investment in edge data center infrastructure, encouraging the growth of this sector.

Morocco invested in submarine and terrestrial fiber-optic cables, providing robust international connectivity. This infrastructure facilitates data exchange and transit, making it easier for edge data centers to connect to global networks and content providers.

With the escalating demand for low-latency applications, edge data centers are gaining traction in Morocco. Businesses are looking to deploy IT resources closer to end-users, IoT devices, and emerging technologies, necessitating strategic investments in edge data centers.

The facilities enable faster data processing, real-time analytics, and improved user experiences for latency-sensitive applications such as online gaming, video streaming, and smart city services. Data center providers are expanding their footprint to accommodate the localization needs of enterprises seeking to leverage the advantages of edge computing.

Latest Trends, Hindrances, and Opportunities in Data Center Facility in Morocco

Attributes	Key Factors
Latest Trends	Growing demand for data center services: Like several other countries, Morocco is seeing an increase in demand for data center services due to the growing adoption of big data analytics, cloud computing, and IoT technology. Emerging as a data center hub in North Africa: Morocco is positioned as the regional hub for data centers in North Africa. Strategic location, relative political stability, and improved infrastructure are contributing factors. Invest in renewable energy: Ecological considerations are becoming increasingly important, and there is a trend toward using renewable energy sources to power data centers. This comprises wind and solar power due to Morocco's favorable climate. Partnership with international partners: Worldwide data center operators seek opportunities to enter the Morocco, often over partnerships with regional companies or through acquisitions. Government initiatives and support: Government strategies and incentives to attract investment in data centers are becoming increasingly important. These policies aim to promote the digital economy's development and fund the IT infrastructure's growth. Focus on security and compliance: With the growing importance of data, safety and compliance with global standards and regulations are increasingly emphasized. This includes measures to protect in contradiction of physical and cyber threats.
Growth Hindrances	Limited skilled labor source: The availability of qualified professionals in data center management, cybersecurity, and IT infrastructure can be challenging. This could hinder the development of the data center sector. Infrastructure challenges: As Morocco works to improve its infrastructure, issues may arise in power connectivity, reliability, and other vital aspects necessary for data center operations. Regulatory environment: Compliance with government regulations and policies can impact the ease of setting up and functioning data centers. Regulatory changes or bureaucratic barriers can pose challenges for contributors. Economic factors: Economic stability and aspects such as currency fluctuations can influence investments in the data center facility. Economic indecisions may lead to a cautious method from investors and operators.
Upcoming Opportunities	North Africa regional center: Morocco is positioning itself as a local hub for data centers in North Africa. Its strategic location allows it to serve the regional and neighbouring countries. Demand for cloud services is increasing: The growing adoption of cloud computing services in Morocco offers noteworthy growth opportunities for data center operators. As businesses move to the cloud, having a consistent data center infrastructure becomes essential. Expand edge computing: With the explosion of IoT devices and applications, the need for edge computing capabilities is increasing. Data centers closer to end users can provide low-latency processing, generating growth opportunities. Integrating renewable energy: Morocco's favorable climate for wind and solar power allows data center operators to invest in renewable energy sources. This can reduce operating costs and subsidize sustainability efforts.

Country-Wise Insights

The table below shows the CAGRs of the top 5 countries for the review period 2023 to 2033. Morocco is expected to remain dominant by exhibiting a CAGR of 7.6% to exceed a valuation of US$ 259.9 million by 2033.

Projected Size (2033)	US$ 259.9 million
Value-based CAGR (2023 to 2033)	7.6%

Rising Investments and Infrastructure Development Crafting Morocco as a Hotspot

The data center facility space is estimated to grow at a CAGR of 7.6% over the forecast period. Companies and investors focus on increasing their investments in Morocco for the data center facility. These investments focus on developing and commissioning new data centers and improving the country's digital infrastructure assets and products.

Various plans involving the interconnection of cloud and carrier-neutral data centers in Morocco are underway to drive the development of the data center facility in Morocco. Data centers want to balance operational productivity and ecological sustainability, considering more excellent climate conditions.

Category-wise Insights

Category	Forecast CAGR (2023 to 2033)
Hardware (Product)	6.7%
Cloud Data Center (Data Center Type)	10.0%
Carriers and telcos (End-use Industry)	6.8%
Tier-3 Data Center (Data Center Tier)	8.9%

Hardware Components to Gain Prominence Worldwide

Hardware components include servers, storage devices, networking equipment, power, and cooling systems. These components form the backbone of any data center, providing the necessary computing and storage capabilities and the infrastructure for data processing and distribution.

Data centers come in various sizes, from small-scale facilities to large hyperscale data centers. Regardless of size, all data centers require hardware components to function. More extensive data centers, especially those serving cloud service providers and enterprises, rely heavily on a vast array of servers and storage systems, driving up the demand for hardware. The hardware segment was estimated to have held the dominant share of 60.2% in 2022, valued at US$ 70.74 million.

Cloud Data Centers to Emerge as Key Contributor to Sales

Enterprises are moving their IT infrastructure, applications, and data to the cloud, driving the demand for cloud data centers. The ongoing digital transformation that is occurring across industries drives the need for IT infrastructure that is scalable. This further acts as a driver for the cloud data centers.

Cloud data centers offer on-demand scalability and elasticity, allowing businesses to quickly and cost-effectively expand their computing resources to meet changing workloads. This flexibility is desirable to companies with fluctuating computational needs. These factors will enable the cloud data centers segment to grow at a CAGR of 10.0% over the forecast period.

Carrier and Telco-owned Data Centers to Remain Preferred Globally

Carriers and telcos already possess extensive network infrastructure, including fiber-optic cables, data transmission capabilities, and a network of data centers. This infrastructure forms a solid foundation for expanding into the data center facility.

Connectivity is a critical factor for data centers. Carrier and telco-owned data centers often have direct access to a wide range of network providers and internet exchanges, which is primarily driving their preference among users. This access ensures high-speed connectivity for customers and businesses collaborating equipment in these facilities.

Carrier data centers are typically designed with built-in redundancy fails to ensure uninterrupted service. They have multiple network paths, power sources, and cooling systems, making them attractive to businesses with strict uptime requirements. This allowed the carriers/telcos to have held the dominant share of 31.2% in 2022.

Tier-3 Data Centers to Surge Sales Due to its High Reliability and Scalability

Tier 3 data centers are designed to provide high reliability and uptime. Businesses increasingly depend on uninterrupted access to their data and applications, making the reliability of Tier-3 facilities a compelling factor for GrowthGrowth.

Many Tier-3 data centers are built with scalability in mind. They allow businesses to start with a smaller footprint and expand their infrastructure as their needs grow. This scalability accommodates the evolving requirements of companies over time. These factors allow the tier-3 data centers to grow at a CAGR of 8.9% over the forecast period.

Competitive Landscape

Key players focus on improving the customer experience during payments for their data center facility solutions. They are also considering the different needs and requirements of the end-users and developing solutions that are tailor-made as per their needs.

Key Strategies Adopted by the Players

Product Innovation:

Companies in the data center facility focus on product innovation, introducing new features, functionalities, and integrations to address security challenges. They develop intuitive interfaces, pre-built security modules, and machine learning capabilities. They invest in research and development to stay ahead of emerging technologies.

Strategic Partnerships and Collaborations:

Data center facility companies are forming strategic partnerships with technology vendors, cybersecurity firms, and industry leaders to expand their customer base, integrate platforms, and expand reach. These partnerships ensure industry compliance and trust, fostering innovation and growth.

Expansion into Emerging Regions:

Data center facility companies have adopted strategies to expand into emerging regions. They focus on developing localized solutions, establishing strategic partnerships, investing in research, and focusing on customer education and training. They also offer competitive pricing models and flexible payment options to attract and retain customers.

Mergers and Acquisitions:

Companies in the data center facility are implementing mergers and acquisitions to expand their offerings and acquire new technologies, intellectual property, and customer bases. This technique improves cloud cost management capabilities, stimulates innovation, produces economies of scale, and strengthens their presence.

Key Players in the Morocco Data Center Facility Industry

• Accenture
• MTDS
• Microsoft
• Google
• Maroc Telecom
• R&M
• Nokia
• Orange Morocco

Key Developments:

• In May 2023, Eaton announced local power and electrical solutions manufacturing across the Middle East in collaboration with regional partners. This leads to Eaton's position as a "single source" manufacturer of low-voltage switchgear and distribution boards for customers in the Middle East.
• In March 2023, Emerson announced the launch of its new data center cooling solution, Emerson Liebert iDataPlex DX. The iDataPlex DX is a modular data center cooling solution designed to be scalable and efficient.
• In April 2022, Mitsubishi Electric Power Products, Inc. (MEPPI) announced the completion of the acquisition of Computer Protection Technology (CPT), a premier provider of critical power services and solutions.

Segmentation Analysis of the Morocco Data Center Facility Industry

By Product:

• Hardware
  • Power Systems
    • Power Distribution Units (PDUs)
    • Power Generators
    • UPS Systems
      • Modular UPS
      • Conventional UPS
  • Cooling System
    • Liquid Cooling System
    • Air Cooling System
  • Data Center Racks
  • Others (Electrical Systems, General Building Infra, Other Hardware)
• DCIM (Data Center Infrastructure Management) Software
• Services
  • Consulting, Planning, and Design Services
  • Security & Disaster Recovery Services
  • Data Center Mitigation Services
  • Integration & Deployment Services
  • Modernization and Optimization Services
  • Support Services

By Data Center Type:

• Enterprise Data Centers
• Edge Data Centers
• Colocation Data Centers
• Hyperscale Data Centers
• Cloud Data Centers
• Managed Data Centers

By Data Center Tier:

• Tier -1 Data Center
• Tier -2 Data Center
• Tier -3 Data Center
• Tier -4 Data Center

By End-Use Industry:

• Carrier/Telcos
• Colocation Service Providers
• Communication Service Providers
• Finance
• Government
• Manufacturers
• Others

Frequently Asked Questions

Who are the data center facility companies in Morocco?

The key players are Accenture, MTDS, Microsoft, Google, and Maroc Telecom

How big will be the data center facility in Morocco?

Morocco's data center facility is likely to record a demand worth US$ 259.9 million by 2033.

What is the data center facility strategy of players in Morocco?

The key growth strategy is partnership, collaboration, product development, and launches.

Which is the famous data center tier by 2033?

Currently, the popularity of Tier-3 data centers is high.

How much is the contribution of carriers/telcos to the data center facility in Morocco?

Carrier/telcos are likely to surge with a CAGR of 6.8% by 2033.