UAE Data Centre Market poised for robust growth

The UAE data center market is projected to grow from 429.34 MW this year to 841.03 MW by 2029, with a compound annual growth rate (CAGR) of 14.39% between 2024 and 2029. The value of data centres has increased significantly as they support e-commerce, cloud computing, remote work, and play a crucial role in driving the global economy.

Data centers are essential for the digital economy, supporting various technologies like cloud computing, artificial intelligence, smart cities, and enterprise applications. They offer the necessary foundation that enables data storage, processing, and distribution, guaranteeing that businesses can function effectively and securely.

“Due to the staggering amounts of data generated around the clock, the UAE will see more investments in data centre infrastructure as businesses are increasingly aware of the need to manage data and information efficiently and cost-effectively,” Johan Nilerud, senior director strategy and planning at Khazna Data Centers, told Khaleej Times in an interview .

The outlook for data centre growth in the UAE is exceptionally promising, Nilerud said. “The region is experiencing a robust expansion in digital infrastructure, driven by initiatives such as smart cities projects, increasing enterprise demand, and the development of new subsea cable hubs that enhance connectivity. At Khazna, we are actively contributing to this growth through our ambitious expansion plans. At present, Khazna has a robust portfolio of advanced data centres across the UAE, with over 23 operational data centres, an additional 7 under construction, and several new projects in the pipeline across the UAE and MENA region,” he added.