UAE Data Center Server Market Size (2024 - 2029)

The United Arab Emirates data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and substantial investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including a substantial increase in IT load capacity, raised floor space, and the number of racks planned for installation. Additionally, the connectivity of the UAE is set to enhance with the construction of numerous submarine cable systems, further supporting the market's growth trajectory.

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Market Size of UAE Data Center Server Industry

UAE Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 2.38 Billion
Market Size (2030) USD 6.28 Billion
CAGR (2024 - 2030) 17.50 %
Market Concentration Medium

Major Players

UAE Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

UAE Data Center Server Market Analysis

The UAE Data Center Server Market size is estimated at USD 2.38 billion in 2024, and is expected to reach USD 6.28 billion by 2030, growing at a CAGR of 17.5% during the forecast period (2024-2030).

The United Arab Emirates data center server market reached a value of USD 845 million in the previous year, and it is further projected to register a CAGR of 17.5% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the United Arab Emirates data center market is expected to reach more than 800 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 5.0 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach above 2,50,000 units by 2029. Abu Dhabi and Dubai are expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 27 submarine cable systems connecting United Arab Emirates, and many are under construction.

UAE Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The United Arab Emirates data center server market is segmented by form factor (blade server, rack server, and tower server) and by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
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UAE Data Center Server Market Size Summary

The United Arab Emirates data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by a robust expansion in IT load capacity, raised floor space, and the number of racks, with Abu Dhabi and Dubai expected to be the primary hubs. The adoption of advanced technologies such as cloud computing, artificial intelligence, and IT services is propelling the use of servers, particularly blade servers, which offer efficient space utilization despite their higher cooling and infrastructure requirements. The UAE's strategic position as a major center for international trade and its efforts to diversify its economy away from oil dependency are fostering a competitive ICT market, further bolstered by the rapid digital transformation accelerated by the COVID-19 pandemic.

The UAE's commitment to becoming a global innovation center is evident in its early adoption of 5G technology and the integration of big data, blockchain, and AI applications. The telecommunications sector, led by Etisalat and DU, plays a crucial role in this digital evolution. Key market players like Dell, IBM, HPE, Lenovo, and Cisco dominate the landscape, engaging in strategic partnerships and technological advancements to enhance their offerings. Recent developments include updates to infrastructure solutions and the expansion of cloud-native platforms, reflecting the market's focus on efficiency and sustainability. The UAE's proactive approach in embracing digital transformation and cloud technology is reshaping its economic and cultural landscape, positioning it as a leader in the MENA region.

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UAE Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growing BFSI sector coupled with digitalisation in the same to drive the market

      2. 1.2.2 Fiber Connectivity Network Expansion

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing number of Data Security Breaches

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

UAE Data Center Server Market Size FAQs

The UAE Data Center Server Market size is expected to reach USD 2.38 billion in 2024 and grow at a CAGR of 17.5% to reach USD 6.28 billion by 2030.

In 2024, the UAE Data Center Server Market size is expected to reach USD 2.38 billion.

UAE Data Center Server Market Report Snapshots

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