UAE Data Center Construction Market Size
| Study Period | 2019 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 1.89 Billion |
| Market Size (2031) | USD 5.13 Billion |
| CAGR (2025 - 2031) | 18.10% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Data Center Construction Market Analysis
The UAE Data Center Construction Market size is estimated at USD 1.89 billion in 2025, and is expected to reach USD 5.13 billion by 2031, at a CAGR of 18.1% during the forecast period (2025-2031).
Cloud investments are on the rise, bolstered by enhanced inland cable and submarine connectivity. The UAE is increasingly embracing big data, IoT, and low-latency networks. Moreover, a shift toward sustainable energy sources and a surge in data center investments further propel the country's data center development.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the United Arab Emirates data center construction market is expected to reach 967 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 3.4 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach 173k units by 2030.
- Planned Submarine Cables: Close to 20 submarine cable systems connect the United Arab Emirates, many of which are under construction. One such submarine cable, estimated to be built by 2025, is SeaMeWe-6, which stretches over 21,700 Kilometers with landing points in Abu Dhabi, United Arab Emirates.
UAE Data Center Construction Market Trends
The IT and Telcom Segment is Expected to Gain Significant Share in the Market
- The data center industry has begun to gain drive with attractive investments from the IT sector. Medium-term growth in IT spending is driven by increased demand for software and services, particularly from large enterprises looking for solutions in the areas of cloud computing, data analytics, cybersecurity, and IoT.
- In July 2024, Emirates Integrated Telecommunications Company (EITC)'s Du unveiled a strategic alliance with Amazon Web Services (AWS) at the Mobile World Congress (MWC) in Barcelona. The primary goal of this partnership is to accelerate cloud adoption among UAE enterprises and government bodies. Du and AWS are establishing a Cloud Center of Excellence (CCoE). This center will focus on crafting industry-leading practices, protocols, and oversight frameworks. These initiatives are designed to empower Du to offer cutting-edge cloud solutions to its clientele.
- In terms of connectivity, robust high-speed internet and well-established telecom infrastructure, coupled with advancements by key telecom players, are bolstering the expansion of data centers in the country. In February 2024, at MWC Barcelona, Huawei, a Chinese vendor, and the Emirati telecom, Du, signed a Memorandum of Understanding (MoU) to enhance 5G-Advanced (5G-A) technology in the UAE. Termed "5G-A Country," the initiative aims to expedite the UAE's digital evolution.
- In December 2023, Nokia and Du, a part of Emirates Integrated Telecommunications Company (EITC), marked a milestone by completing the UAE's inaugural 5G-Advanced RedCap trial over a live commercial network. This trial underscored the readiness of Du's 5G infrastructure and highlighted its potential for pioneering applications in IoT, wearables, and Industry 4.0, which is crucial for overcoming 5G monetization hurdles.
- Such instances in the market create more need for data in the coming years, and this surge in data storage demand is poised to elevate the need for data centers in the region, thereby bolstering the prospects of data center construction firms during the study period.
The Tier 3 Segment is Expected to Hold a Major Share in the Market
- In 2023, there were around 37 data centers in UAE with Tier 3 certification, with a cumulative IT load capacity of 251.5 MW. Reliability and affordability are the major factors driving the demand for tier 3 data centers in the country. The tier 3 segment is projected to register a CAGR of 11.04% to reach around 635.9 MW by 2030.
- In 2023, Dubai emerged as a frontrunner in Tier 3 certified data centers, spearheaded by Khazna Data Center, which commanded an impressive IT load capacity of 107.9 MW spread across 14 facilities. Following closely, Etisalat boasted 44.3 MW, spanning six facilities. Gulf Data Hub operated four facilities with a 38.2 MW IT load. Equinix Inc. oversaw 12.69 MW distributed among three facilities, while the remaining market players held smaller shares.
- During the study period, Abu Dhabi is slated to construct approximately 15 data center facilities, each meticulously designed to meet Tier 3 standards. These strategic facilities are projected to collectively contribute more than 140 MW of IT load capacity to the region. Dubai is also anticipated to introduce two facilities with a combined capacity exceeding 150 MW.
- During the study period, key players are planning to invest in data centers, including Khazna Data Center, Moro Hub (Moro Hub and Huawei), and Gulf Data Hub. These developments in the UAE market are poised to amplify the demand for Tier 3-certified data centers. This heightened demand, particularly within the Tier 3 category, is expected to fuel the necessity for data center construction services in the coming years.
UAE Data Center Construction Industry Overview
The United Arab Emirates data center construction market is moderately consolidated, with significant companies such as Jacobs Engineering Group, Arup Gulf Limited, AECOM, Turner & Townsend, and Aurecon Group Pty. Ltd.
- February 2024: Khazna Data Centers unveiled its latest data center in Abu Dhabi, UAE. The center, named AUH6 and situated in Masdar City, boasts a substantial 31.8MW capacity. Additionally, Khazna collaborated with Emerge to establish a 7MWp solar plant, further enhancing the facility's sustainability.
UAE Data Center Construction Market Leaders
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Jacobs Engineering Group
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Arup Gulf Limited
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AECOM.
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Turner & Townsend
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Aurecon Group Pty. Ltd.
- *Disclaimer: Major Players sorted in no particular order
UAE Data Center Construction Market News
- June 2024: Freshworks Inc. unveiled a new data center in the UAE, leveraging Amazon Web Services (AWS). This move solidifies Freshworks' dedication to fostering innovation in the Middle East and Africa (MEA). The initiative aims to streamline access for businesses in the region, enabling them to fully utilize Freshworks' advanced, AI-driven customer and employee service offerings.
- May 2024: Khazna Data Center announced plans to establish a new data center in Abu Dhabi, UAE. Teaming up with the Abu Dhabi Investment Office (ADIO), the company is slated to construct this facility in the Mafraq industrial area. Situated on land owned by the government, the data center will kick off with a 30MW capacity and is on track to go live by mid-2026.
UAE Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The United Arab Emirates data center construction market is segmented by (infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power back-up solution (UPS and generators), service - design and consulting, integration, and support and maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling)), racks, and other mechanical infrastructure)), general construction, tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users).
The market sizes and forecasts are provided in values (USD) for all the above segments.
| Market Segmentation - By Infrastructure | Market Segmentation - By Electrical Infrastructure | Power Distribution Solution | PDU - Basic and Smart - Metered and Switched solutions | |
| Transfer Switches | Static | |||
| Automatic (ATS) | ||||
| Switchgear | Low Voltage | |||
| Medium Voltage | ||||
| Power Panels and Components | ||||
| Other Power Distribution Solutions | ||||
| Power Back up Solutions | UPS | |||
| Generators | ||||
| Service - Design and Consulting, Integration, and Support and Maintenance | ||||
| Market Segmentation - By Mechanical Infrastructure | Cooling Systems | Immersion Cooling | ||
| Direct-To-Chip Cooling | ||||
| Rear Door Heat Exchanger | ||||
| In-Row and In-Rack Cooling | ||||
| Racks | ||||
| Other Mechanical Infrastructure | ||||
| General Construction | ||||
| Market Segmentation - By Tier Type | Tier-I and-II | |||
| Tier-III | ||||
| Tier-IV | ||||
| Market Segmentation - By End User | Banking, Financial Services, and Insurance | |||
| IT and Telecommunications | ||||
| Government and Defense | ||||
| Healthcare | ||||
| Other End Users | ||||
| Market Segmentation - By Electrical Infrastructure | Power Distribution Solution | PDU - Basic and Smart - Metered and Switched solutions | ||
| Transfer Switches | Static | |||
| Automatic (ATS) | ||||
| Switchgear | Low Voltage | |||
| Medium Voltage | ||||
| Power Panels and Components | ||||
| Other Power Distribution Solutions | ||||
| Power Back up Solutions | UPS | |||
| Generators | ||||
| Service - Design and Consulting, Integration, and Support and Maintenance | ||||
| Market Segmentation - By Mechanical Infrastructure | Cooling Systems | Immersion Cooling | ||
| Direct-To-Chip Cooling | ||||
| Rear Door Heat Exchanger | ||||
| In-Row and In-Rack Cooling | ||||
| Racks | ||||
| Other Mechanical Infrastructure | ||||
| General Construction | ||||
| Tier-I and-II |
| Tier-III |
| Tier-IV |
| Banking, Financial Services, and Insurance |
| IT and Telecommunications |
| Government and Defense |
| Healthcare |
| Other End Users |
UAE Data Center Construction Market Research Faqs
How big is the UAE Data Center Construction Market?
The UAE Data Center Construction Market size is expected to reach USD 1.89 billion in 2025 and grow at a CAGR of 18.10% to reach USD 5.13 billion by 2031.
What is the current UAE Data Center Construction Market size?
In 2025, the UAE Data Center Construction Market size is expected to reach USD 1.89 billion.
Who are the key players in UAE Data Center Construction Market?
Jacobs Engineering Group, Arup Gulf Limited, AECOM., Turner & Townsend and Aurecon Group Pty. Ltd. are the major companies operating in the UAE Data Center Construction Market.
What years does this UAE Data Center Construction Market cover, and what was the market size in 2024?
In 2024, the UAE Data Center Construction Market size was estimated at USD 1.55 billion. The report covers the UAE Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UAE Data Center Construction Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
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UAE Data Center Construction Industry Report
Statistics for the 2025 UAE Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. UAE Data Center Construction analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
