UAE Data Center Market Size, Share | Network Infrastructure & Connectivity Enhancements

"The UAE data center market was US$ 740.53 million in 2023 and is expected to reach US$ 1,992.69 million by 2031, growing with a CAGR of 13.3% between 2024 and 2031." As per DataM intelligence research report

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UAE Data Center Developments

✅ In August 2025, GHV Infra Projects secured an Engineering, Procurement, and Construction (EPC) contract valued at ₹2,645 crore (approximately $320 million) from UAE-based entity Rana Exim FZ-LLC. The contract involves the development of a smart manufacturing hub in the UAE, marking a significant overseas achievement for GHV Infra Projects and signaling expansion in the international infrastructure development domain.

✅ In May 2025, during Dubai AI Week, du announced a substantial partnership with Microsoft involving the construction of a hyperscale data center valued at 2 billion dirhams ($544.54 million). The new facility, owned and operated by du with Microsoft as the primary tenant, aims to enhance the UAE's digital infrastructure and solidify its position as a global artificial intelligence hub.

✅ In May 2025, OpenAI, in collaboration with UAE-based firm G42, announced plans to build "Stargate UAE," a massive AI data center in Abu Dhabi. The project includes a one-gigawatt AI computing cluster, with 200 megawatts expected to be operational within a year. The facility will incorporate Nvidia's most advanced Grace Blackwell GB300 AI servers, with an estimated 100,000 chips powering about 1,400 servers.

✅ In June 2025, the UAE's existing data center capacity surpassed 350 MW, with an additional 60 MW expected to be added by the end of the year. Upcoming projects are set to increase the total capacity to approximately 500 MW, reflecting the country's commitment to expanding its digital infrastructure.

✅ In June 2025, a report highlighted that the UAE and Saudi Arabia are leading the Middle East and Africa regions in data center deployments, with 56 and 43 data centers respectively. Both countries are actively working to build sovereign cloud infrastructure to handle AI workloads.

UAE Data Center Market: Drivers

The UAE data center market is growing rapidly as the country positions itself as a regional hub for digital transformation and cloud adoption. Rising demand from industries such as banking, telecom, healthcare, and government is fueling the need for secure, scalable, and high-performance data infrastructure. Increasing internet penetration, the expansion of 5G networks, and the surge in digital services are driving investments in advanced facilities. The government's smart city initiatives and emphasis on AI, IoT, and big data analytics are further accelerating market development. With a strategic location and robust connectivity, the UAE is emerging as a key player in the global data center landscape.

Sustainability and energy efficiency are becoming central to new data center projects, with a focus on green building standards and renewable energy integration. Major cloud providers and colocation service operators are expanding their presence to meet rising enterprise and hyperscale demands. Advancements in cooling technologies and modular data center designs are enhancing operational efficiency and scalability. Regulatory support for data localization and cybersecurity is strengthening market confidence. As digital transformation accelerates across the Middle East, the UAE data center market is poised for significant growth and long-term opportunities.

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Segment Covered in the UAE Data Center Market:

➥ By Enterprise Size: IT & Telecom, BFSI, Healthcare, Retail, Others

UAE Data Center Market: Major Players

Dcvaults, Etisalat, Gulf Data Hub, Khazna Data Center, and datamena.

Most Frequently Asked Questions in the UAE Data Center Market Research Industry:

➠ Who leads the UAE Data Center industry and what's their competitive positioning regarding capacity, performance, and profitability?
➠ What growth opportunities and market challenges do UAE Data Center market vendors face?
➠ Which segments show the highest growth potential and market share distribution?
➠ What factors are driving or limiting UAE Data Center market growth?
➠ What are the dominant sales and distribution strategies in the UAE Data Center industry?

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Regional Analysis:

⇥ North America (U.S., Canada, Mexico)
⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)
⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)
⇥ South America (Colombia, Brazil, Argentina, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

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✅ Competitive Landscape
✅ Technology Roadmap Analysis
✅ Sustainability Impact Analysis
✅ KOL / Stakeholder Insights
✅ Consumer Behavior & Demand Analysis
✅ Import-Export Data Monitoring
✅ Live Market & Pricing Trends

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