By 2030, the Value of data center market will reach $3.33 billion
A report from Research and Markets has revealed that global tech giants are expanding their operations in the UAE.
The report indicated that the value of the data center market in the country reached $1.26 billion in 2024.
With expectations that it will reach $3.33 billion by 2030, so compound annual growth rate touches 17.6%.
The report provides a detailed analysis of the UAE’s data center market share.
Including a breakdown of current and future investments in IT, electrical and mechanical infrastructure, and general construction standards.
Global tech giants such as Microsoft, Amazon Web Services, Oracle, and Alibaba are establishing and expanding their data center operations in the UAE.
Amazon Web Services continues to expand its cloud footprint, capitalizing on the country’s growing digital economy.
While Microsoft has expanded its cloud operations in both Abu Dhabi and Dubai.
Why the UAE ?
The report confirms that the UAE is a well-established market in the Middle East.
It owns around 35 colocation data centers spread across the country, most of them located in Dubai.
In 2024, the UAE’s data center market accounted for approximately 29% of the total white space added by data center operators in the Middle East.
This represents the largest share held by any single country in the region.
The report further highlights the strategic integration of technological innovation, sustainability, and global partnerships in the UAE’s data center market.
This dynamic environment is driving a qualitative shift in the UAE’s digital economy.
Making it more internationally competitive in terms of digital infrastructure.
The UAE attracted $30 billion in foreign direct investment in 2023. The report covers the significant investments that the country has already made, including $30.7 billion in foreign direct investment that the country attracted in 2023, with an annual growth rate of 35%. pic.twitter.com/j9PxMCJ38w
— UAE Voice (@uae_voiceeng) January 24, 2025
Global Tech Giants Like Khazna Data Holds 59% of Market Share
The report mentions companies like Khazna, Moro, and Gulf Data as examples in the UAE.
For example, Khazna Data holds the highest market share of over 59% in the UAE’s data sector, according to first-half 2024 results.
However, market share is likely to change during the forecast period.
As Gulf Data is involved in developing additional data center facilities that are expected to come online during the forecast period.
Gulf Data currently holds the second-largest market share.
