The UAE’s data centre sector is set for significant growth, with predictions indicating the market will exceed $3.3 billion by 2030. This expansion is driven by increasing demand for cloud computing, AI, and digital infrastructure.
This growth highlights the UAE’s position as a leading digital economy and a central hub for cloud innovation and investment. Research and Markets report that the UAE’s data centre market, valued at $1.26 billion in 2024, is expanding at an annual rate of 18%, with new capacity emerging in Dubai, Abu Dhabi, and Sharjah. This growth is fueled by AI adoption, data localisation needs, and government-backed digital transformation initiatives, making data infrastructure a strategic national asset.
The UAE holds the largest share of data centre space in the Middle East, contributing to 29% of new capacity in 2024. Operators are striving to meet the increasing demand for sovereign cloud services to support high-performance AI tasks.
Currently, the UAE has over 350 MW of operational capacity, with an additional 500 MW in development. This establishes its role as the Gulf’s connectivity and data-sovereignty hub. Investments from global tech giants, telecoms, and sovereign wealth funds underscore the strategic importance of digital infrastructure to the UAE’s economy.
Du CEO Fahad Al Hassawi stated the company’s commitment to enhancing national digital infrastructure and data sovereignty, partnering with Microsoft on a Dh2 billion data-centre project to advance hybrid-AI platforms and cloud services.
Eric Wan of Alibaba Cloud International praised the UAE’s regulatory environment and AI-driven vision. Executives from Oracle and Cloudera noted the role of hybrid-cloud models in secure data processing and scalable AI development.
Mordor Intelligence predicts the UAE data centre market will grow from 429.34 MW this year to 841.03 MW by 2029, with a CAGR of 14.39% from 2024 to 2029, indicating steady growth.
A recent analysis highlighted that with 35 data centres and the highest public-cloud spending per employee in the GCC, the UAE’s digital infrastructure is a strong base for AI innovation.
CBRE and other researchers forecast continued double-digit growth through 2030, spurred by hyperscale demand, smart-city projects, and sustainable energy facilities. As digital transformation becomes integral to national strategy, the UAE is building the backbone of a fully AI-enabled economy.
