The UAE data center market is expanding rapidly, reaching $1.26bn by 2024 and expected to exceed $3.3bn by 2030 amid AI adoption.
The UAE is experiencing a major boom in data center and cloud infrastructure projects, powered by the government’s rapid digital transformation and adoption of artificial intelligence (AI) technology.
This growth reinforces the nation’s position as the region’s leading destination for cloud infrastructure and a preferred destination for global digital investment.
UAE Data Center Market
According to a research and markets report, the UAE data center market is expanding at a very fast pace, worth $1.26bn in 2024 and is expected to exceed $3.3bn in 2030.
The country already maintains a large portfolio of active and future data centers with a combined capacity of several hundred megawatts.
Investments in the sector by international operators include incredible capital, local developers, regional investors, and highlight the importance of digital infrastructure as a national economic asset supported by sustainable growth.
Managers from leading UAE and International Firms told the Emirates News Agency to invest significantly in information sovereignty, enabling organizations to manage and manage their solutions securely within national borders.
DU is increasing investment in infrastructure
Fahad Al Hassawi, CEO of DU, said the company continues to invest in digital infrastructure and national data centers to strengthen the UAE’s digital economy and improve data sovereignty.
Discussing the calls planned for the maintenance of infrastructure and infrastructure for 2025, Al Hassawi said that the spending reached AED545M ($148M) this year, compared to AED442M ($120m) in 2024.
Capital intensity increased to 14 percent from 12.3 percent in the second quarter of last year, reflecting du’s increasing focus on data centers, 5G network development, and national network platforms.
He noted that the investment strengthens the UAE’s position as a digital region, accelerates AI investments, supports global digital government and private sector initiatives through managed genetic services.
ALIBABA Cloud expands to Dubai
Eric Wan, Alibaba’s Vice President of Cloud International and General Manager in the Middle East, Turkey, and Asia’s open economy and controllable economy and to make it a good thing to attract big investment in cloud infrastructure and AI.
He added that the UAE and the wider region are among the fastest growing global markets in certain areas of cloud and AI.
The company considers the UAE as an important global hub, leading to the opening of a second data center in Dubai as part of a major expansion of Alibaba Cloud’s Digital-Infrastructure.
Oral digital conversion
Yassine El BAKIOULI, PICE Mongamemmalei of application Sales, Gulf Commercial at Oracle, said the company is expanding its network of private data centers and cloud services in the UAE and secure digital services.
Ahmad Shakoura, President of Group Media – Emerging Markets (Meta) at CyouderA, said the UAE’s ambitions to lead the digital economy are built on the important premise of maintaining strong institutions
He explained that AI cannot flourish without an improved data infrastructure, which enables access to an organization’s data from multiple sources – including public and private clouds, and cloud environments.
He also noted that hybrid cloud infrastructure has become one of the UAE’s Stratech Enervices to develop these capabilities.
Shakoura added that cloud data centers now serve as important drivers of national growth, enabling secure processing of large data volumes and generating predictive information that improves efficiency and promotes innovations.
This strong infrastructure, he said, enables the UAE to accelerate economic growth and strengthen its global competitiveness as a leading place for technological change and innovation.
Digital infrastructure
Industry analysts say the UAE’s Data Center Expansion fits into the country’s plan to build a knowledge-based, AI-driven economy.
With growing investment from the public and private sectors, the nation is positioning itself as the digital backbone of the Middle East, enabling next-generation services, innovation, and continued economic diversification.
