The UAE data centre industry growth is gaining momentum, with the market valued at $1.26 billion in 2024. Experts project it will surpass $3.3 billion by 2030 as AI and digital transformation drive investment.
Rapid Expansion in Cloud and Data Infrastructure
The UAE is witnessing a surge in data centre and cloud infrastructure projects. Accelerated government digital initiatives and widespread AI adoption are fueling this growth.
These investments reinforce the nation’s role as a regional hub for cloud infrastructure. They also attract global digital investors seeking stable and advanced IT ecosystems.
Market Size and Investment
According to a recent report, the UAE data centre market is expected to more than double in value by 2030. The country already hosts a portfolio of operational and upcoming data centres with capacities reaching hundreds of megawatts.
Investments come from international operators, sovereign funds, local developers, and regional investors. This highlights the strategic importance of data infrastructure as a national economic asset supporting sustainable growth.
Focus on Data Sovereignty
Executives emphasize the importance of keeping data within national borders. This ensures security and compliance while enabling organizations to operate AI solutions locally.
Fahad Al Hassawi, CEO of du, stated that the company continues to invest heavily in national data centres to strengthen the UAE’s digital economy. Capital expenditure for 2025 reached AED545 million ($148 million), up from AED442 million ($120 million) in 2024.
These investments support AI adoption, managed cloud services, and the UAE’s broader push for operational sustainability and reduced carbon emissions.
Major Cloud Players Expanding
Alibaba Cloud has expanded its operations in Dubai, opening a second data centre as part of a large-scale digital infrastructure project. Eric Wan, Vice President of Alibaba Cloud International, said the UAE’s regulatory and economic environment attracts significant cloud and AI investments.
Oracle is also expanding its network of private data centres in the UAE. Yassine El Bakiouli, VP of Application Sales, Gulf Commercial at Oracle, noted that these centres help public and private entities accelerate secure digital transformation.
Cloudera highlights that advanced data centres now act as engines powering AI adoption. Ahmad Shakoura, Group VP – Emerging Markets (META), explained that hybrid cloud infrastructures are essential for accessing data across public clouds, private clouds, on-premises systems, and edge computing.
Driving Economic Growth
The UAE’s data centres are more than storage facilities. They process massive data volumes, generate predictive insights, and support innovation. This robust infrastructure enables faster economic growth and strengthens the country’s competitiveness in digital technologies.
Industry analysts agree that the UAE’s data centre expansion aligns with its strategy to build a knowledge-based, AI-driven economy. Public and private sector investments are creating a digital backbone for the Middle East.
Looking Ahead
With the projected growth of the UAE data centre industry, the country is set to exceed $3.3 billion by 2030. Continued investment in cloud, AI, and hybrid infrastructures ensures that the UAE remains a leading hub for digital transformation and technological innovation.
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