Press release
UAE Data Center Market Expansion Anchored by Dubai and Abu Dhabi, Set to Reach USD 6.70 Billion
According to Arizton, this momentum is translating into strong market expansion, with the UAE data center market valued at USD 2.38 billion in 2025 and projected to reach USD 6.70 billion by 2031, reflecting sustained investment and long-term growth in digital infrastructure and capacity development.
Explore the Full Market Insights: https://www.arizton.com/market-reports/united-arab-emirates-data-center-market
Market Snapshot & Growth Indicators
Market Size (Investment): USD 6.70 Billion (2031)
Market Size (Area): 1,160 Thousand Sq. Feet (2031)
Market Size (Power Capacity):290 Mw (2031)
CAGR - Investment (2025-2031): 8.52%
Colocation Market Size (Revenue): USD 1.98 Billion (2031)
Historic Year: 2022-2024
Base Year: 2025
Forecast Year: 2026-2031
Hyperscalers Expand Cloud and AI Infrastructure to Meet Rising Demand
Global hyperscale's are accelerating their footprint, positioning the country as a high-growth cloud and AI infrastructure market. Microsoft continues to expand its cloud regions and AI capabilities, while Amazon Web Services is scaling its regional infrastructure in response to rising enterprise and public-sector demand. This momentum is reflected in a March 2025 partnership between Microsoft, Core42, and the Abu Dhabi government to develop a sovereign cloud and AI platform capable of supporting over 11 million daily digital interactions. Aligned with a $3.54 billion digital strategy, the initiative aims to fully automate government processes and deploy more than 200 AI solutions, underscoring a broader shift toward AI-led digital transformation, hyperscale expansion, and sovereign cloud adoption.
Connectivity Infrastructure Scales to Support Data Center Demand
The country's connectivity landscape is strengthening rapidly, supported by a growing network of submarine cable infrastructure. With around 18 operational systems and three additional cables set for commissioning between 2026 and 2027, the market is enhancing its global data exchange capacity. A key asset is 2Africa submarine cable, one of the world's largest subsea networks spanning approximately 27,960 miles and linking the UAE to major international markets across Europe, the Middle East, and Africa. This expanding subsea connectivity network plays a critical role in enabling the country's ICT ecosystem, hyperscale data center growth, and cross-border digital infrastructure development.
UAE Strengthens Data Center Market with Sustainable Growth and Competitive Power Advantage
The UAE data center market is advancing rapidly, supported by rising capacity, competitive energy pricing, and a strong national focus on sustainability. As of October 2025, colocation operators have added approximately 414.2 MW of core and shell power capacity, reflecting continued momentum in hyperscale and colocation data center expansion. This growth aligns with the UAE's commitment to achieve net-zero carbon emissions by 2050, backed by a $163.5 billion investment in renewable energy. Operators are increasingly integrating renewable energy and sustainable power solutions to reduce environmental impact, with Khazna Data Centers leading regional innovation through the adoption of biofuel-powered generators. At the same time, industrial electricity prices ranging between $0.07 and $0.09 per kWh as of Q4 2025 offer a competitive advantage compared to regional and global markets, strengthening the UAE's position as a cost-efficient and sustainable hub for data center investment in the Middle East.
UAE Colocation Services Market Shifts Toward Wholesale Capacity
The UAE colocation services market is entering a scale-driven phase, shaped by rising enterprise cloud migration and AI-led infrastructure demand. With around 37 operational data centers across key cities including Abu Dhabi and Dubai, the country continues to strengthen its position as a leading digital infrastructure hub in the Middle East. Market dynamics are increasingly shifting toward wholesale colocation, which accounted for approximately 73% of revenue in 2025 and is projected to exceed 90% by 2031, as enterprises and cloud providers require large-scale capacity to support AI and high-performance computing (HPC) workloads. This shift is driving investment in advanced facilities featuring high-density racks, liquid cooling, and GPU clusters. Key operators such as Khazna Data Centers continue to expand their footprint, supporting demand across government, telecom, and enterprise segments, positioning the UAE as a high-growth market for wholesale colocation and next-generation data center infrastructure.
Access the Full Report & Strategic Insights: https://www.arizton.com/market-reports/united-arab-emirates-data-center-market
Gain deeper visibility into growth segments, regional dynamics, and competitive positioning shaping the global pro AV market.
Vendor Ecosystem Strengthens UAE Data Center Market
The market is characterized by a strong presence of global leaders, including:
IT Infrastructure Providers
• Arista Networks
• Atos
• Cisco
• Dell Technologies
• Hewlett Packard Enterprise
• Huawei Technologies
• IBM
• Lenovo
• NetApp
• NVIDIA
Data Center Construction Contractors & Sub-Contractors
• AESG
• ALDAR
• ALEC Engineering and 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
• Gulf Data Hub
• Khazna Data Centers
• Moro Hub
• Pacific Controls
• Pure Data Centres
• XDS DATACENTERS
New Entrants
• Quantum Switch Tamasuk
• Volt
The UAE Data Center Market Report Includes Size in Terms of
1. IT Infrastructure: Servers, Storage Systems, and Network Infrastructure
2. Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgears, PDUs, and Other Electrical Infrastructure
3. Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
4. Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, and Other Cooling Units
5. General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression Systems, Physical Security, and Data Center Infrastructure Management (DCIM)
6. Tier Standard: Tier I & Tier II, Tier III, and Tier IV
7. Geography: Dubai, Abu Dhabi, and Other Cities
Discover Connected Market Opportunities:
Saudi Arabia Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
https://www.arizton.com/market-reports/saudi-arabia-data-center-market-investment-analysis
Middle East and Africa Data Center Market Landscape 2025-2030
https://www.arizton.com/market-reports/middle-east-africa-data-center-market
What Key Findings Will Our Research Analysis Reveal?
• How big is the UAE data center market?
• How much MW of power capacity will be added across UAE during 2026-2031?
• What factors are driving the UAE data center market?
• Which all cities are included in UAE center market report?
About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
Arizton Advisory & Intelligence
Chicago, Illinois, 60607
Mail: enquiry@arizton.com
Call: +1 312-680-2940
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