| Study Period | 2021 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 1.87 Billion |
| Market Size (2031) | USD 3.16 Billion |
| CAGR (2025 - 2031) | 9.15 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Arab Emirates Data Center Processor Market Analysis
The United Arab Emirates Data Center Processor Market size is estimated at USD 1.87 billion in 2025, and is expected to reach USD 3.16 billion by 2031, at a CAGR of 9.15% during the forecast period (2025-2031).
The UAE is becoming a leader in AI infrastructure. It currently has the 36th most powerful high-performance computer in the world. Additionally, the private sector controls 89% of the country's AI-related processing power.The U.S. has approved G42, an AI datacenter company from the UAE, to purchase advanced Nvidia AI processors, such as the H100 and H200.
In April 2024,Microsoft is investing $1.5 billion for a minority stake in G42, an AI company based in the UAE. The two companies plan to work together to create and offer AI solutions using Microsoft Azure for various industries and markets in the Middle East.
By 2031, the United Arab Emirates (UAE) expects private sector investments in artificial intelligence (AI) to reach AED 335 billion, significantly boosting the nation's economy. Recognizing AI's transformative potential, the UAE is intensifying its AI investments to maintain its position as a global leader in innovation and technology. The Gulf Cooperation Council (GCC) is urging industry stakeholders to capitalize on AI's vast capabilities, driving the region towards a more digital and sustainable future. This surge in AI investments is also expected to drive substantial growth in the processor and data center market, as the increasing adoption of AI technologies will necessitate advanced computing power and robust data storage infrastructure.
United Arab Emirates Data Center Processor Market Trends
GPUs Propel Expansion of AI Data Centers
The data center market in the United Arab Emirates is growing quickly due to the increasing use of GPUs for advanced AI tasks. For instance, in February 2024, Moro Hub partnered with NVIDIA to use its advanced computing platform and reference design to build a leading green AI data center in the UAE. This partnership combines NVIDIA's technology with Moro's experience in creating modern data centers, helping businesses use AI effectively and improve their operations across various industries. As operators increasingly shift toward AI-driven data centers for long-term efficiency, the demand for GPUs in data centers is expected to rise significantly. The adoption of GPUs enables faster processing of AI workloads, reduces operational costs over time, and enhances scalability, making them a critical component in modern data center infrastructure. These investments are expected to drive the processors market's growth in the region.
The processor data center market is witnessing significant growth, driven by increasing demand for advanced computing solutions. Partnerships and collaborations are shaping the market for efficient data center solutions as companies address growing demands.For instance, Hewlett Packard Enterprise (HPE) partnered with Khazna Data Centres to launch a managed data center hosting service in the UAE, supporting the nation's AI strategy and regional AI projects. The facility, optimized for high-performance computing (HPC) technologies, includes computing, accelerated computing, software, and networking. HPE Services, known for 24/7 global support, worked with Khazna to enhance its Abu Dhabi data center for AI and HPC workloads. This collaboration reflects the trend of companies joining forces to deliver advanced data center solutions.
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AI Partnerships and Collaborations will Drive the United Arab Emirates Data Center Processor Market
The data center processor market in the UAE is experiencing significant growth, driven by the increasing adoption of AI technologies. Strategic partnerships and collaborations among key players are fostering innovation and enhancing the capabilities of data center processors, positioning the market for sustained expansion.Future advancements in AI-driven processors are expected to enable faster data analysis and improved energy efficiency, driving market adoption. The growing demand for cloud computing and AI-driven applications, coupled with government initiatives supporting digital transformation, will continue to propel the market forward.
In September 2024, Microsoft strengthened its partnership with Abu Dhabi's G42 to deliver better AI solutions for public sector clients worldwide. Microsoft invested USD 1.5 billion in G42, allowing the company to access key AI tools like Nvidia chips and work together on global AI projects. The partnership aims to make AI and cloud technologies easier to use for developing economies. This collaboration is also expected to boost the processor market by increasing the need for advanced computing power.
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United Arab Emirates Data Center Processor Industry Overview
The United Arab Emirates data center processor market is led by key players such as Advanced Micro Devices Inc, NVIDIA Corporation, Broadcom Inc, IBM, and ZOTAC Technology Ltd, making it highly competitive. The increasing reliance on GPUs in data centers is driven by the need to handle AI, machine learning, and high-performance computing workloads. GPUs enhance energy efficiency, scalability, and processing power, enabling seamless cloud operations, hybrid computing, and data-intensive applications. Furthermore, the United Arab Emirates growing focus on smart city initiatives and real-time analytics is accelerating GPU adoption
In September 2024, G42, a datacenter AI company from the UAE, plans to buy advanced Nvidia AI processors, including the H100 and H200. The UAE has heavily invested in AI infrastructure and is focusing on data security to become a key player in the global AI market.
United Arab Emirates Data Center Processor Market Leaders
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Advanced Micro Devices Inc.
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NVIDIA Corporation
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Broadcom Inc.
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IBM
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ZOTAC Technology Ltd.
- *Disclaimer: Major Players sorted in no particular order
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United Arab Emirates Data Center Processor Market News
- June 2024: Du, a UAE telecom provider, will use Oracle Alloy to deliver cloud and AI services for the UAE's government and public sector. With Oracle Alloy, Du will offer over 100 Oracle Cloud Infrastructure (OCI) services along with its own cloud solutions. Oracle's partnership with Nvidia will also enable Du to provide sovereign AI capabilities and GPU-as-a-Service to UAE government entities.
- August 2023: The UAE is working on generative AI applications and has bought 'thousands' of Nvidia GPUs. At the state-owned Technology Innovation Institute in Masdar City, Abu Dhabi, it has created an open-source large language model called Falcon, trained on 384 A100 chips.
United Arab Emirates Data Center Processor Industry Segmentation
Data centers house and manage critical applications and data, using computing and storage networks for efficient delivery. Processors—GPUs, CPUs, and TPUs—are central to their operation. GPUs handle multitasking, excelling in graphics rendering and AI tasks. CPUs, with multi-core architecture, support parallel processing. TPUs, designed for machine learning, stand out from GPUs, which have transitioned from graphics to AI applications.
United Arab Emirates Data Center Processor Market is Segmented by Processor Type (CPU, GPU, FPGA, AI Accelerators), by Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, and Others), by Architecture (x86 and Non-x86 (ARM, Power and other processors), and by Data Center Type (Enterprise, Colocation and Cloud Service Providers). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).
| Market Segmentation - By Processor Type | GPU |
| CPU | |
| FPGA | |
| AI Accelerator | |
| Market Segmentation - By Application | Advanced Data Analytics |
| AI/ML Training and Inferences | |
| High Performance Computing | |
| Security and Encryption | |
| Network Functions | |
| Others | |
| Market Segmentation - By Architecture | x86 |
| Non-x86 (ARM, Power and other processors) | |
| Market Segmentation - By Data Center Type | Enterprise |
| Colocation | |
| Cloud Service Providers |
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United Arab Emirates Data Center Processor Market Research Faqs
How big is the United Arab Emirates Data Center Processor Market?
The United Arab Emirates Data Center Processor Market size is expected to reach USD 1.87 billion in 2025 and grow at a CAGR of 9.15% to reach USD 3.16 billion by 2031.
What is the current United Arab Emirates Data Center Processor Market size?
In 2025, the United Arab Emirates Data Center Processor Market size is expected to reach USD 1.87 billion.
Who are the key players in United Arab Emirates Data Center Processor Market?
Advanced Micro Devices Inc., NVIDIA Corporation, Broadcom Inc., IBM and ZOTAC Technology Ltd. are the major companies operating in the United Arab Emirates Data Center Processor Market.
What years does this United Arab Emirates Data Center Processor Market cover, and what was the market size in 2024?
In 2024, the United Arab Emirates Data Center Processor Market size was estimated at USD 1.70 billion. The report covers the United Arab Emirates Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the United Arab Emirates Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
United Arab Emirates Data Center Processor Industry Report
Statistics for the 2025 United Arab Emirates Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Arab Emirates Data Center Processor 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.
