The UAE Data Center Market Investment to Hit $3.33 Billion by 2030, with Colocation Revenue Projected at $845 Million in the Next 6 Years - Arizton

According to Arizton's latest research report, the UAE data center market [https://www.arizton.com/market-reports/united-arab-emirates-data-center-market] is growing at a CAGR of 17.64% during 2024-2030.

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Report Scope:

Market Size - Investment (2030): $3.33 Billion

Market Size - Area (2030): 724 Thousand Sq. Ft.

Market Size - Power Capacity (2030): 178 MW

CAGR - Investment (2024-2030): 17.64%

Colocation Market Size - Revenue (2030): $845 Million

Historic Year: 2021-2023

Base Year: 2024

Forecast Year: 2025-2030

Key Aspects of the UAE Data Center Market

Major Locations and Operators

Dubai and Abu Dhabi were the primary hubs for data center development in 2024, with major contributions from operators like Gulf Data Hub, Khazna Data Centers, and Equinix. These cities accounted for a significant share of the new data center space added during the year.

Market Size and Utilization

The UAE data center market held the largest share of white floor area added in the Middle East, representing 29% of the regional total. By mid-2024, colocation operators in the UAE added 1.31 million sq ft of core and shell white floor area, with a utilization rate of approximately 70%.

Free Zone Incentives

The UAE offers several Free Trade Zones (FTZs) across Dubai, Sharjah, Ajman, Abu Dhabi, and Fujairah. These zones provide investors with benefits such as corporate tax exemptions, full import and export tax exemptions, and assistance with local labor recruitment, enhancing the country's appeal as an investment destination.

Major Developments and Projects

Pure Data Centres is developing a facility in Abu Dhabi, expected to provide 180,000 sq ft of white floor space by 2025.

Gulf Data Hub is constructing five data center facilities in Dubai and Abu Dhabi, totaling 550,000 sq ft of white floor space, set to become operational in the next one to two years.

In May 2024, Khazna Data Centers partnered with the Abu Dhabi Investment Office (ADIO) to build a data center in the Mafraq industrial area, secured under a Musataha agreement.

In November 2024, Khazna Data Centers and BEEAH signed a joint venture to develop a facility in Sharjah's COMTECH Freezone to support the UAE's vision of becoming a global digital and AI hub.

Market Leaders and Competition

Khazna Data Centers currently dominates the market with over 53% of the white floor area (exceeding 700,000 sq ft), but its share may decline as Gulf Data Hub develops over 1.87 million sq ft of white floor area across various stages of planning and construction. Gulf Data Hub holds 16.7% of the existing market and is poised to strengthen its position significantly.

Industrial Rent Insights

Average industrial rents in key areas like Dubai Industrial City, Jebel Ali Industrial area, and Abu Dhabi's ICAD range between $8 and $13 per sq ft, reflecting strong demand for data center infrastructure.

The UAE continues to position itself as a critical hub for data center development, leveraging strategic investments, infrastructure growth, and government-backed initiatives.

Cloud Sector Driving Data Center Demand in the UAE

The UAE's data center market is heavily influenced by global cloud operators such as Microsoft, Alibaba, Amazon Web Services, and Oracle, whose growing presence is expected to boost the demand for wholesale colocation services. As digital transformation accelerates, the cloud sector is set to dominate capacity uptake over the next five years, with international players like Google and Tencent Cloud expected to enter the market.

Cloud adoption is gaining momentum across various sectors:

BFSI Industry: Organizations like Arab Financial Services, Matrix, and Noon Payments are leveraging cloud platforms to enhance operations and ensure secure data storage.

Government: Partnerships, such as the Roads and Transport Authority (RTA) in Dubai collaborating with AWS, are advancing cloud adoption for public services.

Education: Initiatives like the Mohammed Bin Rashid Space Centre's use of AWS for the Emirates Mars Mission showcase the role of cloud technology in research and education.

Gaming Industry: Companies like ONEMT utilize cloud solutions to expand globally, optimize IT infrastructure, and enhance user experiences.

Healthcare Industry: Institutions like King's College Hospital London in Dubai benefit from Oracle Cloud Infrastructure (OCI), reducing patient data access times and streamlining workflows.

With a focus on innovation and digital transformation, enterprises are increasingly adopting cloud-first strategies, outsourcing IT infrastructure to third-party cloud providers. The UAE's commitment to advancing its digital economy ensures that the cloud sector remains a cornerstone of data center demand. Investments in state-of-the-art cloud infrastructure will position the UAE as a competitive player in the global digital landscape.

Flexible Rack Solutions Powering Data Centers in UAE Market

UAE data centers prioritize versatile rack designs, with 42U racks being the most common due to their adaptability. The standard rack dimensions are 19 inches in width and 600 times 1,200 mm in size, supporting various server configurations. With growing demand from AI, machine learning, and cloud computing, average power densities now range between 4 kW and 6 kW per rack. Providers like Khazna Data Centers and du offer modular and scalable rack solutions to meet evolving workloads. Notably, Equinix's DX3 facility in Dubai, launched in May 2023, began with 900 racks and plans to double capacity as part of its phased expansion.

Geographical Analysis

Dubai serves as a strategic business hub in the UAE, offering advanced connectivity, secure infrastructure, and supportive government policies for digital innovation. The city hosts major ICT companies like IBM and Lenovo and is a leading startup ecosystem and data center investment hotspot. With 21 existing data centers as of September 2024, Dubai houses operators such as Equinix, Khazna, and Gulf Data Hub. Investments exceeding $3.93 billion are projected between 2025 and 2030, driven by new facilities and cloud regions from AWS, Microsoft, and others. Submarine cable connectivity, rising cloud adoption, AI integration, and government initiatives further boost the market.

Why Should You Buy this Research?

* Market size available in the investment, area, power capacity, and colocation market revenue.
* An assessment of the data center investment in the UAE by colocation, hyperscale, and enterprise operators.
* Data center investments in the area (thousand square feet) and power capacity (MW) across cities in the country.
* A detailed study of the existing UAE data center market landscape, an in-depth industry analysis, and insightful predictions about the UAE data center market size during the forecast period.

* Snapshot of existing and upcoming third-party data center facilities in the UAE

* Facilities Covered (Existing): 35
* Facilities Identified (Upcoming): 24
* Coverage: 5 Cities
* Existing vs. Upcoming (Data Center Area)
* Existing vs. Upcoming (IT Load Capacity)

* Data center colocation market in the UAE

* Colocation Market Revenue & Forecast (2024-2030)
* Wholesale vs. Retail Colocation Revenue (2024-2030)
* Retail Colocation Pricing
* Wholesale Colocation Pricing
* The UAE data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
* A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
* Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
* A transparent research methodology and the analysis of the demand and supply aspects of the industry.

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The Report Includes the Investment in the Following Areas:

IT Infrastructure

* Server Infrastructure
* Storage Infrastructure
* Network Infrastructure

Electrical Infrastructure

* UPS Systems
* Generators
* Transfer Switches & Switchgears
* PDUs
* Other Electrical Infrastructure

Mechanical Infrastructure

* Cooling Systems
* Rack
* Other Mechanical Infrastructure

Cooling Systems

* CRAC and CRAH Units
* Chillers Units
* Cooling Towers, Condensers and Dry Coolers
* Other Cooling Units

General Construction

* Core & Shell Development
* Installation & Commissioning Services
* Building & Engineering Design
* Fire Detection & Suppression Systems
* Physical Security
* Data Center Infrastructure Management (DCIM)

Tier Standards

* Tier I & Tier II
* Tier III
* Tier IV

Geography

* Dubai
* Abu Dhabi
* Other Cities

Vendor Landscape

IT Infrastructure Providers

* Arista Networks
* Atos
* Cisco Systems
* Dell Technologies
* Hewlett Packard Enterprise
* Huawei Technologies
* IBM
* Lenovo
* NetApp

Data Center Construction Contractors & Sub-Contractors

* AESG
* ALDAR
* ALEC Engineering & Contracting
* Arcadis
* Arup
* ASU
* BG&E
* Black & White Engineering
* CADD Emirates
* Condor Group
* Core Emirates
* DC PRO Engineering
* Edarat Group
* Group AMANA
* HHM Group
* James L Williams
* John Paul Construction
* Laing O'Rourke
* Laith Electro Mechanical
* Linesight
* M+W Group
* McLaren Construction Group
* Meinhardt Group
* MEMA Architecture
* Raghav Contracting
* Red Engineering Design
* Rider Levett Bucknall
* RW Armstrong
* Site & Power DK
* STS Group
* Sudlows
* Syska Hennessy Group
* Telal Engineering & Contracting
* Turner & Townsend

Support Infrastructure Providers

* ABB
* Airedale
* Alfa Laval
* Caterpillar
* Chatsworth Products
* Cummins
* Delta Electronics
* Eaton
* Envicool
* Johnson Controls
* Legrand
* Rittal
* Rolls-Royce
* Schneider Electric
* Siemens
* STULZ
* Vertiv

Data Center Investors

* Core42
* du
* Equinix
* Khazna Data Centers
* Gulf Data Hub
* Moro Hub
* Pacific Controls
* New Entrants
* Quantum Switch Tamasuk (QST)
* Pure Data Centres

The Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to gain a thorough understanding of the UAE data center market. Request for Free Sample to get a glance of the report now: [https://www.arizton.com/market-reports/united-arab-emirates-data-center-market]

What Key Findings Our Research Analysis Reveals?

How big is the UAE data center market?

How much MW of power capacity will be added across the UAE during 2025-2030?

What is the growth rate of the UAE data center market?

What factors are driving the UAE data center market?

Which cities are included in the UAE data center market report?

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