The UAE data center market is poised for significant expansion, with projections indicating an 18.82% CAGR from 2025 to 2031. Currently hosting 37 operational facilities across major cities such as Abu Dhabi and Dubai, the market continues to grow with 21 new centers planned. Investments in submarine cables bolster the UAE's digital economy, enhancing high-speed data and reducing latency. Retail colocation holds a 27% market share with a shift towards wholesale expected, reaching over 91% by 2031. Key players like Khazna and Gulf Data Hub lead the market, while new entrants suggest a dynamic competitive landscape in the region.
Dublin, May 20, 2026 (GLOBE NEWSWIRE) -- The "UAE Data Center Market - Investment Analysis & Growth Opportunities 2026-2031" report has been added to ResearchAndMarkets.com's offering.
The UAE data center market size is expected to reach a value of $6.7 billion by 2031 from $2.38 billion in 2025, growing at a CAGR of 18.82%
This report analyses the UAE data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, cooling systems, general construction, and tier standards. It discusses market sizing and investment estimation for different segments.
The number of data center facilities in the UAE is gradually increasing. The UAE is one of the well-developed markets in the Middle East region, and the country hosts around 37 operational data center facilities spread across several cities including Abu Dhabi, Al Ain, Dubai, Fujairah, and Sharjah.
At present, the UAE has 18 operational submarine cables; it is witnessing investment in three more submarine cables, which are expected to become operational by 2026-2027. Multiple submarine cables enable high-speed data transmission, decrease latency, as well as meet the increasing demand for broadband and cloud services, which are essential for the UAE digital economy.
For instance, in February 2026, the $700 million WorldLink cable was announced; the cable is slated to connect the UAE to Turkey via Iraq, accounting for a capacity of 900 Tbps and subsequently reducing the Europe-Middle East latency to below 100 ms by bypassing the congested Egypt route. The carrier-neutral system will strengthen AI, hyperscaler, and financial-trading connectivity while reinforcing the UAE's role as a regional digital gateway.
In 2025, retail colocation is projected to account for about 27% of the total market share, while wholesale colocation is expected to retain the remaining 73%. By 2031, the market share for wholesale colocation revenue is estimated to increase to over 91%, with retail colocation revenue will retain the remaining 9%.
UAE DATA CENTER MARKET VENDOR LANDSCAPE
- IT infrastructure providers play a critical role in supporting UAE's high-density and cloud-driven data center ecosystem, supplying servers, storage, networking, and AI-optimized hardware.
- Engineering firms focus on modular construction, prefabrication, and accelerated build timelines to meet tight capacity rollout schedules. Collaboration between contractors, consultants, and government authorities ensures compliance with planning, environmental, and power allocation regulations.
- Leading Support infrastructure providers such as ABB , Airedale, Caterpillar , Cummins , Eaton , Legrand , Rittal, Schneider Electric , STULZ, Vertiv and others maintain a strong presence through local service teams, long-term maintenance contracts, and regional manufacturing hubs.
- From an investment perspective, the UAE colocation market is shaped by several well-established operators. Key players include Core42, du, Equinix, Gulf Data Hub, Khazna Data Centers, Moro Hub, and Pure Data Centres. In addition, new entrants such as Quantum Switch Tamasuk and Volt are gaining traction, signaling rising demand for colocation capacity and more advanced, flexible data center offerings. This evolving competitive landscape encourages innovation and continuous improvement in service quality and technology deployment.
- Khazna Data Centers is one of the major companies in the country, offering colocation services to several industries including government, telecommunications, cloud providers, and large enterprises through 12 operational facilities.
- In addition, Gulf Data Hub currently holds the second spot, in terms of core & shell power capacity in the UAE data center market. However, the company accounts for under-developed/planned data center capacity of over 256.0 MW. Once these are operational, it will have a significant impact on market share.
WHY SHOULD YOU BUY THIS RESEARCH?
- Market size available in the investment, area, power capacity, and UAE colocation market revenue.
- An assessment of the data center investment in UAE by colocation, hyperscale, and enterprise operators.
- Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
- A detailed study of the existing UAE data center market landscape, an in-depth industry analysis, and insightful predictions about the UAE data center market size during the forecast period.
- Snapshot of existing and upcoming third-party data center facilities in UAE
- Facilities Covered (Existing): 37
- Facilities Identified (Upcoming): 21
- Coverage: 5 Cities
- Existing vs. Upcoming (Data Center Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data center colocation market in UAE
- Colocation Market Revenue & Forecast (2022-2031)
- Retail & Wholesale Colocation Revenue (2022-2031)
- Retail & Wholesale Colocation Pricing
- UAE data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
- A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
- Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
- A transparent research methodology and the analysis of the demand and supply aspect of the market.
KEY QUESTIONS ANSWERED
- How big is the UAE data center market?
- How much MW of power capacity will be added across UAE during 2026-2031?
- What factors are driving the UAE data center market?
- Which all cities are included in UAE center market report?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 136 |
| Forecast Period | 2025 - 2031 |
| Estimated Market Value (USD) in 2025 | $2.38 Billion |
| Forecasted Market Value (USD) by 2031 | $6.7 Billion |
| Compound Annual Growth Rate | 18.8% |
| Regions Covered | United Arab Emirates |
INVESTMENT OPPORTUNITIES
- Microeconomic & Macroeconomic Factors for UAE Market
- Impact of AI in Data Center Industry in UAE
- Investment Opportunities in UAE
- Digital Data in UAE
- Government Rules and Regulations for Data Centers
- Market Investment by Area
- Market Investment by Power Capacity
VENDOR LANDSCAPE
IT Infrastructure Providers
Data Center Construction Contractors & Sub-Contractors
- AESG
- ALDAR
- ALEC Engineering and Contracting
- Arcadis
- Arup
- ASU
- BG&E
- Black & White Engineering
- CADD Emirates
- Condor Group
- Core Emirates
- DC PRO Engineering
- Edarat Group
- Group AMANA
- HHM Group
- James L Williams Companies
- John Paul Construction
- Laing O'Rourke
- Laith Electro Mechanical
- Linesight
- M+W Group
- McLaren Construction Group
- Meinhardt Group
- MEMA Architecture
- Raghav Contracting
- RED Engineering Design
- Rider Levett Bucknall
- RW Armstrong
- Site & Power DK
- STS Group
- Sudlows
- Syska Hennessy Group
- Telal Engineering & Contracting
- Turner & Townsend
Support Infrastructure Providers
Data Center Investors
- Core42
- du
- Equinix
- Gulf Data Hub
- Khazna Data Centers
- Moro Hub
- Pacific Controls
- Pure Data Centres
- XDS DATACENTERS
New Entrants
- Quantum Switch Tamasuk
- Volt
EXISTING VS. UPCOMING DATA CENTERS
Existing Facilities in the region (Area and Power Capacity)
- Dubai
- Abu Dhabi
- Other Cities
List of Upcoming Facilities in the region (Area and Power Capacity)
- Dubai
- Abu Dhabi
- Other Cities
REPORT COVERAGE
IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
Electrical Infrastructure
- UPS Systems
- Generators
- Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
Cooling Systems
- CRAC and CRAH
- Chillers
- Cooling Towers, Condensers and Dry Coolers
- Other Cooling Units
General Construction
- Core & Royal Dutch Shell Development
- Installation & commissioning Services
- Building & Engineering Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
Geography
- Dubai
- Abu Dhabi
- Other Cities

For more information about this report visit https://www.researchandmarkets.com/r/70p6qd
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