UAE Data Center Construction Market Size (2024 - 2029)

The United Arab Emirates data center construction market is projected to experience significant growth over the forecast period, with its market size expanding considerably. This growth is driven by the development of substantial IT load capacity, increased raised floor space, and a substantial number of planned racks. Additionally, the expansion of submarine cable systems, including major projects like 2Africa, is set to enhance connectivity, further contributing to the market's expansion.

Market Size of UAE Data Center Construction Industry

UAE Data Center Construction Market Summary
Study Period 2024 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 452.5 Million
Market Size (2030) USD 775.60 Million
CAGR (2024 - 2030) 9.48 %
Market Concentration Medium

Major Players

UAE Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

UAE Data Center Construction Market Analysis

The UAE Data Center Construction Market size is estimated at USD 452.5 million in 2024, and is expected to reach USD 775.60 million by 2030, growing at a CAGR of 9.48% during the forecast period (2024-2030).

Under Construction IT Load Capacity: The upcoming IT load capacity of the United Arab Emirates data center construction market is expected to reach 841 MW in six years.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 5.0 million sq. ft in six years.

Planned Racks: The country's total number of racks to be installed is expected to reach 250576 units in six years.

Planned Submarine Cables: Close to 20 submarine cable systems connect the United Arab Emirates; many are under construction. One such submarine cable, estimated to be built by the end of the current year, is 2Africa, which stretches over 10000 Kilometers with landing points in Kalba.

UAE Data Center Construction Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with them. Under data center construction, we track the capital expenditure incurred while building the existing DC facilities and estimate the future capex based on upcoming DC facilities.

The United Arab Emirates data center construction market is segmented by infrastructure (electrical infrastructure (UPS systems, other electrical infrastructure), mechanical infrastructure (cooling systems, racks, other mechanical infrastructure), and other infrastructure), by end-user (banking, financial services, and insurance, IT and telecommunications, government, healthcare, and other end users).

The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Infrastructure
Electrical Infrastructure
UPS Systems
Other Electrical Infrastructures
Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructures
Other Infrastructures
By End User
IT & Telecommunication
BFSI
Government
Healthcare
Other End Users
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UAE Data Center Construction Market Size Summary

The United Arab Emirates data center construction market is poised for significant expansion, driven by the increasing demand for digital infrastructure across various sectors. The market is experiencing robust growth, with major contributions from the BFSI and e-commerce sectors, which are expected to see substantial advancements in the coming years. The UAE's position as a global leader in digital banking adoption and the rapid growth of its e-commerce sector underscore the burgeoning need for data centers. Additionally, the telecom industry is witnessing a surge in investment due to the proliferation of 4G and the impending rollout of 5G technologies, further fueling the market's expansion. Key regions such as Abu Dhabi and Dubai are emerging as central hubs for data center development, supported by significant investments from major players like Equinix and Khazana.

The market's growth trajectory is supported by the ongoing construction of substantial IT load capacities and raised floor spaces, alongside the installation of numerous racks and submarine cable systems. Abu Dhabi and Dubai are at the forefront, with both cities expected to see considerable increases in their data center capacities. The UAE's strategic initiatives, such as the Golden Visa program and the development of digital infrastructure, are attracting a young, tech-savvy demographic, particularly in Dubai. This demographic shift, coupled with the rapid urbanization and economic diversification in Abu Dhabi, is driving the demand for advanced data center facilities. The market is fairly consolidated, with prominent players like ABB, Caterpillar, Arup, AECOM, and Future Digital Data Systems playing pivotal roles in shaping the industry's landscape.

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UAE Data Center Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

  2. 2. MARKET DYNAMICS

  3. 3. MARKET SEGMENTATION

    1. 3.1 By Infrastructure

      1. 3.1.1 Electrical Infrastructure

        1. 3.1.1.1 UPS Systems

        2. 3.1.1.2 Other Electrical Infrastructures

      2. 3.1.2 Mechanical Infrastructure

        1. 3.1.2.1 Cooling Systems

        2. 3.1.2.2 Racks

        3. 3.1.2.3 Other Mechanical Infrastructures

      3. 3.1.3 Other Infrastructures

    2. 3.2 By End User

      1. 3.2.1 IT & Telecommunication

      2. 3.2.2 BFSI

      3. 3.2.3 Government

      4. 3.2.4 Healthcare

      5. 3.2.5 Other End Users

UAE Data Center Construction Market Size FAQs

The UAE Data Center Construction Market size is expected to reach USD 452.5 million in 2024 and grow at a CAGR of 9.48% to reach USD 775.60 million by 2030.

In 2024, the UAE Data Center Construction Market size is expected to reach USD 452.5 million.

United Arab Emirates Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024-2030)