Key Takeaways
- The UAE data center colocation market is projected to grow at a CAGR of 25.33%, reaching $1.736 billion by 2030.
- Abu Dhabi and Dubai are leading the sector with 34 existing facilities and 23 planned projects.
- Major cloud players like AWS and Oracle Cloud are central to the market’s growth, fueled by advancements in AI, IoT, and 5G technologies.
Market Growth and Infrastructure Development
The UAE’s data center colocation market is on a strong growth trajectory, expected to increase from $448 million in 2024 to $1.736 billion by 2030, registering a compound annual growth rate (CAGR) of 25.33%. The growth is primarily driven by advancements in digital infrastructure within Abu Dhabi and Dubai, which host 34 operational data centers.
The ongoing digital transformation in the UAE is attributed to several factors, including the proliferation of artificial intelligence, big data analytics, the Internet of Things (IoT), and the acceleration of 5G technology adoption. These developments significantly boost the need for enhanced digital infrastructure and colocation facilities.
The market is seeing key players such as Alibaba Cloud, Amazon Web Services (AWS), Microsoft Azure, and Oracle Cloud anchoring its growth. In addition, new entrants like Pure Data Centres Group and XDS DATACENTRES are expanding the market landscape.
As of now, Dubai hosts approximately 21 facilities while Abu Dhabi has around 10, with other cities like Ajman and Sharjah beginning to establish their own centers. The report highlights a total of 23 upcoming data centers, indicating a robust pipeline for growth.
Market Insights and Future Projections
The comprehensive market report provides valuable insights regarding colocation demand, competitive dynamics, and forecasts for the future. It includes analyses of industry factors propelling growth, such as increased adoption of cloud services and strategic investments in submarine cables for enhanced connectivity.
Additionally, the report covers sustainability efforts within the UAE data center sector, addressing how green practices are becoming integral as digital solutions evolve. Comprehensive market data features existing versus upcoming developments, IT power capacities, and revenue generation from retail and wholesale colocation services.
The analysis underscores key trends, opportunities, and the competitive landscape, offering stakeholders critical intelligence to navigate this rapidly evolving sector. With substantial digital investments on the horizon, the UAE positions itself as a pivotal player in regional digital transformation efforts, shaping the future of data infrastructure in the Middle East.
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