Middle East Data Center Market Size is Expected to Reach USD 19,290.5 Million By 2034 | CAGR: 13.60%

Middle East data Center Market Overview

Market Size in 2025: USD 6,122.3 Million

Market Size in 2034: USD 19,290.5 Million

Market Growth Rate 2026-2034: 13.60%

According to IMARC Group's latest research publication, "Middle East data Center Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Middle East data center market size reached USD 6,122.3 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 19,290.5 Million by 2034, exhibiting a growth rate (CAGR) of 13.60% during 2026-2034.

How AI is Reshaping the Future of Middle East data Center Market

● AI technologies are boosting data center operational efficiency by optimizing power consumption and cooling mechanisms, leading to greener data centers aligned with sustainability goals.

● Integration of AI-powered analytics improves predictive maintenance, reducing downtime and enhancing reliability for Middle East data centers.

● Governments in the region support digital transformation and smart city initiatives, accelerating AI adoption in data center infrastructures.

● AI enhances cybersecurity in data centers by detecting and responding to threats in real-time, crucial for protecting sensitive data across BFSI and government sectors.

● Companies like Etisalat and Gulf Data Hub are incorporating AI technologies to enhance service offerings and optimize data processing capabilities.

● The surge in cloud services and e-commerce demands AI-driven scalable solutions to manage vast data volumes efficiently.

Grab a sample PDF of this report: https://www.imarcgroup.com/middle-east-data-center-market/requestsample

Market Growth Factors

The rapid growth of artificial intelligence and hyperscale computing is driving growth of the Middle East data center market. Saudi Arabia and the United Arab Emirates have backed sovereign AI initiatives by encouraging massive investments in data center campuses with contiguous power blocks greater than 50 MW. AWS, Microsoft, Google, and others serve hyperscale services to increase AI workload demand, serve cloud services, and compute with high-performance. National strategies also contribute like Saudi Vision 2030 and UAE AI Strategy 2031. Both strategies transform digitally and seek to position the region as a global hub in AI. This should triple capacity from the 1 GW planned in 2025. Riyadh, Dubai and Abu Dhabi will build out a lot, attracting international financing and exemplifying leading sustainable, AI-enabled infrastructure.

Government-led digital transformation initiatives and legislation are driving growth in the region's data center market. National strategies like the smart city initiatives (NEOM) in Saudi Arabia and the Dubai Digital Economy Strategy are creating demand for advanced infrastructure which enables e-government, Internet of things, and smart city-related services across the region. Tax incentives, land availability, power affordability, data sovereignty and localization legislations can help attract massive investments from domestic and foreign players, as well as hyperscalers to build colocation and edge data centers to meet demand for low latency, provide data sovereignty, and satisfy compliance and regulatory requirements. So, the market has been growing at a fast rate recently. In about 2030, total capacity in the region is expected to more than double, and the region will play a key role in European-Asian-African digital connectivity.

Scalable and highly localized data center infrastructure is needed because of the rapid adoption of the cloud, 5G and stricter data residency rules. Enterprises from virtually every sector are shifting from on-premises to hybrid and multi-cloud environments and want low latency and compliance with data residency regulations. 5G networks that cover most of the population create a need for edge data centers for real-time applications such as gaming, banking and Internet of things (IoT) applications. Affordable natural gas, renewable sources for energy, prefabrication, and modular construction are reducing the cost of energy, and the time needed to build new data centers. Due to these drivers, colocation revenue and IT load capacity have seen high growth rates and projections through 2030 show that the region will be a competitive alternative to Western metropolitan hub areas.

Buy the Latest 2026 Edition: https://www.imarcgroup.com/checkout?id=19859&method=1392

Market Segmentation

Component Insights:

● Solution
● Services

Type Insights:

● Colocation
● Hyperscale
● Edge
● Others

Enterprise Size Insights:

● Large Enterprises
● Small and Medium-sized Enterprises

End User Insights:

● BFSI
● IT and Telecom
● Government
● Energy and Utilities
● Others

Country Insights:

● Saudi Arabia
● Turkey
● Israel
● United Arab Emirates
● Iran
● Iraq
● Qatar
● Kuwait
● Oman
● Jordan
● Bahrain
● Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

● Etisalat
● Gulf Data Hub
● Khazna Data Centers
● MEEZA

Recent Developement & News

● July 2025: The UAE government partnered with leading technology firms to launch a cloud innovation hub, accelerating AI and 5G integration in national data centers, enhancing data processing capabilities and digital transformation.

● August 2025: Gulf Data Hub expanded its colocation services with a new hyperscale data center in Saudi Arabia, targeting increased enterprise demand for scalable and secure cloud infrastructure.

● October 2025: Industry reports revealed a surge in demand for green data centers in the Middle East, with over 40% of new data center projects incorporating renewable energy sources and advanced cooling technologies, underscoring sustainability priorities.

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA,

Email: sales@imarcgroup.com,

Tel No: (D) +91 120 433 0800,

United States: +1-201971-6302

This release was published on openPR.