Market Size of united arab emirates data center Industry
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 429.3 MW |
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Market Volume (2029) | 841 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 14.39 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
United Arab Emirates Data Center Market Analysis
The United Arab Emirates Data Center Market size is estimated at 429.3 MW in 2024, and is expected to reach 841 MW by 2029, growing at a CAGR of 14.39%. Further, the market is expected to generate colocation revenue of USD 5,575 Million in 2024 and is projected to reach USD 12,897.9 Million by 2029, growing at a CAGR of 18.26% during the forecast period (2024-2029).
USD 5,574.97 Million
Market Size in 2024
USD 12,897.86 Million
Market Size in 2029
20.0%
CAGR (2017-2023)
18.3%
CAGR (2024-2029)
IT Load Capacity
429.3 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 841 MW by 2029. In 2023, mobile devices was accounted for over 60% of website traffic in the United Arab Emirates, it would increase IT load capacity.
Total Raised Floor Space
Sq. Ft. 2.26 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 5 million sq. ft by 2029. In the United Arab Emirates, operators are planning approximately 370 MW of IT load capacity overall increasing raised floor space.
Installed Racks
113,347
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 250,576 units by 2029. Dubai is expected to house the maximum number of racks by 2029. The switch to e-banking at the National Bank of Fujairah, would increase the rack space in future.
# of DC Operators & DC Facilities
11 and 38
Volume, DC Facilities, 2024
There are 38 colocation data center facilities in the United Arab Emirates. Some factors contributing to the growth of the data center market in the country include the adoption of 5G, smartphone penetration, and digitization.
Leading Market Player
45.8%
Market Share, Khazna Data Center, 2023
Khazna Data Center was the leading player in the UAE market in the historical period and is expected to roll out a 20-data center facility with an average capacity of 13.50 MW during the forecast period.
Tier 3 data centers accounts for majority market share in 2023, and Tier-4 is the fastest growing in forecasted period
- The tier 1 & 2 data center facilities in the UAE market reached an IT load capacity of 7.20 MW in 2022 and are expected to witness growth that remains stagnant over the forecast period. The tier 3 data center facilities in the UAE market reached an IT load capacity of 178.64 MW in 2022 and are expected to register a CAGR of 11.96% to reach a capacity of 576.94 MW by 2029.
- Tier 3 has a major growth rate compared to other tiers. During the forecast period, the majority of the facilities are Tier 3 certified. Some providers for upcoming facilities are Equinix Inc., Khazna Data Center, and Moro Hub.
United Arab Emirates Data Center Industry Segmentation
Abu Dhabi, Dubai are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- The tier 1 & 2 data center facilities in the UAE market reached an IT load capacity of 7.20 MW in 2022 and are expected to witness growth that remains stagnant over the forecast period. The tier 3 data center facilities in the UAE market reached an IT load capacity of 178.64 MW in 2022 and are expected to register a CAGR of 11.96% to reach a capacity of 576.94 MW by 2029.
- Tier 3 has a major growth rate compared to other tiers. During the forecast period, the majority of the facilities are Tier 3 certified. Some providers for upcoming facilities are Equinix Inc., Khazna Data Center, and Moro Hub.
| Hotspot | |
| Abu Dhabi | |
| Dubai | |
| Rest of United Arab Emirates |
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
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United Arab Emirates Data Center Market Size Summary
The United Arab Emirates data center market is experiencing significant growth, driven by the increasing demand for digital infrastructure and services. The market is characterized by a robust expansion in colocation revenue and IT load capacity, with a notable emphasis on Tier 3 data center facilities, which are expected to dominate the growth trajectory. The proliferation of mobile internet usage and the rapid increase in smartphone penetration are key factors contributing to the surge in data traffic, necessitating the development of advanced data center solutions. The deployment of 5G private wireless networks by companies like Nokia and Etisalat UAE further underscores the region's commitment to embracing Industry 4.0 technologies, including smart cities and artificial intelligence.
The competitive landscape of the UAE data center market is moderately consolidated, with major players such as Equinix Inc., Etisalat, Gulf Data Hub, Khazna Data Center, and Web Werks holding significant market shares. These companies are actively involved in strategic partnerships and innovative projects, such as the development of solar-powered data centers and expansions in existing facilities, to meet the growing demand for data services. The market's growth is also supported by the expansion of the telecom industry, IoT applications, and cloud services, which are all contributing to the increasing internet consumption and the need for scalable and efficient data center solutions in the UAE.
United Arab Emirates Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Hotspot
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1.1.1 Abu Dhabi
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1.1.2 Dubai
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1.1.3 Rest of United Arab Emirates
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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United Arab Emirates Data Center Market Size FAQs
What is the current United Arab Emirates Data Center Market size?
The United Arab Emirates Data Center Market is projected to register a CAGR of 14.39% during the forecast period (2024-2029).
Who are the key players in United Arab Emirates Data Center Market?
Equinix Inc., Etisalat, Gulf Data Hub, Khazna Data Center and Web Werks are the major companies operating in the United Arab Emirates Data Center Market.
