Data Centers in UAE (United Arab Emirates) Market Analysis
The data centers in UAE have been growing strong to make the United Arab Emirates a data center hub for the Middle East region. Over 180 zettabytes of data will be generated by 2025 in UAE. Hence the importance of robust data center infrastructure is essential in UAE. Again, UAE boasts of its strategic location in the Middle East and that will help data center companies in UAE to offer these services to other Middle East countries.
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The global hyperscale data center market is estimated to reach approximately $935.3 billion by 2032, with a projected CAGR of 27.9%. The data centers market in UAE is expected to witness a CAGR (compound annual growth rate) of 10% from 2023 to 2029 to reach the market size of US$2.7 billion Data Centers market in UAE.
In terms of data center capacity, the UAE Data Center Market size is estimated at 430 MW in 2024 and is expected to reach 845 MW by 2029 driven by the demand for AI products and services, 5G technology implementation, and increasing demand from fintech companies.
Best Data Center Companies in UAE
Many prominent domestic and multinational data center companies such as Khazna Data Center, Datamena, Amazon Web Services (AWS), Google, Microsoft, and Equinix are leading the data center market in the UAE.
Below are the data center companies in UAE along with data centers in UAE
| Data Center Companies in UAE |
|---|
| Equinix Inc. |
| Zenlayer |
| Microsoft Azure |
| Oracle |
| Datamena |
| Dcvaults |
| eHosting DataFort |
| Etisalat |
| Gulf Data Hub |
| Injazat |
| Khazna Data Center |
| Moro Hub (Data Hub Integrated Solutions Moro LLC) |
| Pacific Controls |
| Web Werks |
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Major Data Center Companies in UAE
Khazna Data Center
Khazna Data Center is the leading data center in UAE market. The company is expected to roll out 20 data center facilities with an average capacity of 13.50 MW over the next 5 years. Khazna Data Center captured 45.8% of the total data center market share in UAE in 2023.
The majority stakes in the Khazna data center are owned by Mubadala Investment Company. Khazna data center has 24 fully operational data center sites in UAE along with 4 sites that are under construction. By the end of the year 2024, the company will have over 245MW of total operational data center facility.
Most of the data centers of this company are clustered around Abu Dhabi and Dubai. The Abu Dhabi Investment Office (ADIO) is collaborating with Khazna Data Centres (Khazna to boost Abu Dhabi’s data economy. Khazna will build an advanced data center in Mafraq, Abu Dhabi, with an initial capacity of 30MW to be operational by mid-2026.
Equinix Inc.
Equinix Inc. is one of the leading global data center players operating worldwide. The company is one of the major players in data centers in UAE. Equinix has three data center in Dubai (DX1, DX2, DX3) and one data center in Abu Dhabi (AD1).
Zenlayer Data Center
Zenlayer is one of the major data center in UAE with 2 data centers (DX1 and FJR1) in Dubai. Zenlayer is the leading cloud platform in the Middle East, providing robust cloud computing, cloud networking, and connectivity solutions.
Major Hyperscale Data Center Providers in UAE
Microsoft and Oracle are two major hyperscalers present in the UAE data center market. Oracles are present in Dubai with data centers named UAE East Me – Dubai-1, and UAE Central Me – Abudhabi-1. The country is also witnessing an AWS Region in the United Arab Emirates in August 2022 named the Middle East (UAE), and the API name is me-central-1.
Outlook
UAE accounted for the majority share in the Middle East data center market in 2023. Smart Cities supported by digital technologies and the emergence of 5G networks are expected to generate massive amounts of data in the UAE. That needs localized data centers to speed up data transfer.
Again, the United Arab Emirates has been a prime location for data centers in the region. According to Arcadis’ Data Centre Location Index, the UAE’s “well-established fiber broadband network” helped the country secure the top spot for mobile broadband penetration.
Please reach out to us for detailed capacity of Data center companies in UAE and the Middle East. Get regular data center project updates from major data center companies in the Middle East and other regions or countries.
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