UAE Data Center Market Size by Investment to Reach USD 1,015 Million by 2026

UAE data center market size is expected to grow at a CAGR of over 7.99% during the period 2020−2026. UAE data center market research report includes market size in terms of area, investment, power capacity, and colocation revenues. Get insights on 24 existing and 13 upcoming facilities spread across 5 cities, including Dubai, Abu Dubai, and other cities (Al Ain, Fujairah, and Sharjah).

  1. The UAE is one of the largest data center hubs in the Middle East, and its data center industry is thriving due to good submarine cable connectivity, high speed internet bandwidth, significant digital transformation, and fast adoption of the Internet of Things (IoT).
  2. Dubai is the leading data center market in the UAE, with 16 unique third-party data center facilities accounting for around 60% of the existing power capacity, followed by Abu Dhabi, contributing to over 30% of the power capacity.
  3. The UAE has free trade zones benefitting industrial and enterprise investments, with tax incentives. In 2020, the UAE received investment from colocation providers Equinix, Gulf Data Hub, Khazna Data Centers, Etisalat, Moro Hub, and Group 42.
  4. The UAE has a presence of prominent cloud service providers such as Huawei Technologies, Alibaba, Microsoft, Oracle, IBM, and Amazon Web Services (AWS). In January 2020, IBM launched two data centers in Abu Dhabi and Dubai, UAE. AWS has announced a new cloud region in Abu Dhabi, to be operational in 2022.
  5. Dubai is one of the world’s first smart cities and is one of the world’s fastest adopters of Internet of Things (IoT). The Smart IoT Dubai project is a government initiative to connect sensors across the city. Civil rights and law enforcement are a few legal issues connected with Smart IoT Dubai.
  6. The UAE is working towards installing 42 GW of renewable energy in the country by 2050. Dubai has already started work on this vision by commissioning a five-part renewable energy project and is currently setting up an 800 MW solar park.