UAE Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| CAGR | 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Data Center Construction Market Analysis
The United Arab Emirates Data Center Construction Market is projected to register a CAGR of 6%.
Under Construction IT Load Capacity: The upcoming IT load capacity of the United Arab Emirates data center construction market is expected to reach 841 MW in six years.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 5.0 million sq. ft in six years.
Planned Racks: The country's total number of racks to be installed is expected to reach 250576 units in six years.
Planned Submarine Cables: Close to 20 submarine cable systems connect the United Arab Emirates; many are under construction. One such submarine cable, estimated to be built by the end of the current year, is 2Africa, which stretches over 10000 Kilometers with landing points in Kalba.
UAE Data Center Construction Market Trends
BFSI to have significant market share
- BFSI and e-commerce are the major end-user segments, expected to showcase significant growth during the forecast period. Regarding adopting digital banking, the UAE comes in sixth position globally.
- A survey by the Australian financial comparison website Finder predicts that by the end of 2027, the number of UAE residents using digital banking will rise by 22 percentage points to 41%. About 19% of the UAE customers polled said they had a digital bank account, and another 15% said they planned to get one in the upcoming year.
- As a result, adoption will reach a predicted level of 34% in the current year. According to research conducted by Merchant Machine, the United Arab Emirates is expected to show significant market growth in e-commerce.
- It further predicted that the percent change in the e-commerce market size over the current year would be nearly 23.11%, with e-commerce spending accounting for 1.1% of the country's GDP. The other end-user and telecom segments are also expected to show significant growth.
- The rapidly increasing 4G penetration and the upcoming 5G wave further motivate telecom vendors to invest in the UAE data center market. According to the Telecommunications Regulatory Authority (UAE), over 18.7 million active mobile phone subscribers were in March 2022.
Abu Dhabi and Dubai are the major hotspots for data center construction
- Abu Dhabi and Dubai are the major hotspots in the country. The data center market in Abu Dhabi reached an IT load capacity of 88.01 MW in 2022, and it is expected to record a CAGR of 14.32% to reach a capacity of 352.91 MW by 2029.
- The data center market in Dubai reached an IT load capacity of 56.50 MW in 2022, and it is expected to witness a CAGR of 19.46% to reach a capacity of 444.87 MW by 2029. Abu Dhabi has grown into a substantial, developed metropolis due to its quick urbanization and growth, as well as its enormous oil and gas reserves, output, and relatively high average income.
- It is a significant hub for culture and business, and it is the political and industrial hub of the nation. About two-thirds of the United Arab Emirates' USD 400 billion economy comes from Abu Dhabi. Key players such as Equinix and Khazana are investing in expanding their footprints across Abu Dhabi. For instance, during the forecast period, Khazana Abu Dhabi is expected to launch 10 facilities with an IT load capacity of 141.98 MW. Dubai is benefiting from a growing knowledge-based economy.
- Young millennials are attracted to Dubai because of the numerous reforms implemented, including the Golden Visa program and the development of digital infrastructure. The Department of Economy and Tourism (DET) at Dubai's Establishment for Small and Medium Enterprises Development (Dubai SME) announced the debut of Concept+, which is a brand-new business incubator that strongly emphasizes digital technology. The Rest of United Arab Emirates comprises Al Ain, Fujairah, and Kalba. These regions are in the process of adopting data center facilities.
UAE Data Center Construction Industry Overview
United Arab Emirates Data Center Construction Market is fairly consolidated, some significant players include ABB, Caterpillar, Arup, AECOM and Future Digital Data Systems.
UAE Data Center Construction Market Leaders
ABB
Caterpillar
FUTURE DIGITAL DATA SYSTEMS
Arup
AECOM
*Disclaimer: Major Players sorted in no particular order
UAE Data Center Construction Market News
- May 2021: Dubai Electricity and Water Authority (DEWA) inaugurated six electricity transmission substations in Dubai. The project was completed with an investment of AED 1.1 billion. The substations include a 400 kilovolt (kV) substation at the Mohammed bin Rashid Al Maktoum Solar Park and five 132 kV substations in other areas in Dubai.
- December 2020: The United Arab Emirates commissioned its first Barakah Nuclear Energy Plant, which reached 100% of the reactor power capacity for Unit 1 of the facility during testing.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. MARKET INSIGHTS
5. Market Overview
6. Industry Attractiveness - Porter's Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Buyers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Degree of Competition
7. Key Industry Statistics
7.1 Planned/Under Construction IT Load Capacity
7.2 Planned/Under Construction Raised Floor Space
7.3 Planned/Under Construction Racks
7.4 Planned Submarine Cable
8. MARKET DYNAMICS
9. Market Drivers
9.1 Rising Adoption of Renewable Energy Sources
9.2 Increase in 5G Deployments Fueling Edge Data Center Investments
9.3 Smart City Initiatives Driving Data Center Investments
10. Market Restraints
10.1 Security Challenges in Data Centers
10.2 Location Constraints on the Development of Data Centers
11. MARKET SEGMENTATION
11.1 By Infrastructure
11.1.1 Electrical Infrastructure
11.1.1.1 UPS Systems
11.1.1.2 Other Electrical Infrastructures
11.1.2 Mechanical Infrastructure
11.1.2.1 Cooling Systems
11.1.2.2 Racks
11.1.2.3 Other Mechanical Infrastructures
11.1.3 Other Infrastructures
11.2 By End User
11.2.1 IT & Telecommunication
11.2.2 BFSI
11.2.3 Government
11.2.4 Healthcare
11.2.5 Other End Users
12. COMPETITIVE LANDSCAPE
13. Company Profiles
13.1 Turner Construction Co.
13.2 DPR Construction Inc.
13.3 Fortis Construction
13.4 ABB Ltd.
13.5 Delta Electronics
13.6 AECOM Limited
13.7 Daikin Industries Ltd
13.8 Caterpillar
13.9 CyrusOne Inc.
13.10 Johnson Controls International Plc
13.11 Rittal GmbH & Co. KG
13.12 DC PRO Engineering
13.13 Delta Group
13.14 AMANA
13.15 Mitsubishi Electric
13.16 AECOM
13.17 Schneider Electric
13.18 STULZ GMBH
13.19 FUTURE DIGITAL DATA SYSTEMS
13.20 Aldar Properties
13.21 Arup
- *List Not Exhaustive
14. INVESTMENT ANALYSIS
15. MARKET OPPORTUNITIES AND FUTURE TRENDS
UAE Data Center Construction Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with them. Under data center construction, we track the capital expenditure incurred while building the existing DC facilities and estimate the future capex based on upcoming DC facilities.
The United Arab Emirates data center construction market is segmented by infrastructure (electrical infrastructure (UPS systems, other electrical infrastructure), mechanical infrastructure (cooling systems, racks, other mechanical infrastructure), and other infrastructure), by end-user (banking, financial services, and insurance, IT and telecommunications, government, healthcare, and other end users).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Infrastructure | |||||
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| Other Infrastructures |
| By End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End Users |
Frequently Asked Questions
What is the current UAE Data Center Construction Market size?
The UAE Data Center Construction Market is projected to register a CAGR of 6% during the forecast period (2024-2030)
Who are the key players in UAE Data Center Construction Market?
ABB, Caterpillar, FUTURE DIGITAL DATA SYSTEMS, Arup and AECOM are the major companies operating in the UAE Data Center Construction Market.
What years does this UAE Data Center Construction Market cover?
The report covers the UAE Data Center Construction Market historical market size for years: . The report also forecasts the UAE Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
UAE Data Center Construction Industry Report
Statistics for the 2024 UAE Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
