Middle East Data Center Market Boom: Green Energy, AI, and 5G Revolution
Key Ideas
  • The Middle East data center market is projected to grow significantly, reaching USD 9.61 billion by 2029 at a CAGR of 9.52%.
  • Countries like UAE, Saudi Arabia, and Oman are actively incorporating renewable energy sources into their data center facilities to promote sustainability.
  • AI adoption is on the rise in the Middle East, with countries like the UAE, Saudi Arabia, Oman, and Kuwait implementing various AI initiatives across different sectors.
  • The deployment of 5G networks and edge facilities is gaining momentum in the region, with Saudi Arabia leading in 5G subscribers and the UAE aiming for 100% 5G coverage by 2025.
The Middle East Data Center Market is experiencing substantial growth, with a value of USD 5.57 billion in 2023 expected to reach USD 9.61 billion by 2029, showcasing a CAGR of 9.52%. Key investors in the Middle East data center market include Equinix, center3 (stc), Gulf Data Hub, and others. Notable construction contractors like McLaren Construction Group and AECOM are actively involved in expanding data center infrastructure. The region is witnessing a significant shift towards incorporating renewable energy sources like green hydrogen and solar power into data center operations to promote sustainability. Countries like the UAE, Saudi Arabia, and Oman are leading in this endeavor. Furthermore, AI adoption is on the rise in the Middle East, with governments implementing various programs and strategies to harness the potential of artificial intelligence across sectors such as education, healthcare, and finance. The UAE, Saudi Arabia, Kuwait, and Bahrain are among the countries actively promoting AI initiatives. The deployment of 5G networks and edge facilities is gaining momentum in the region, with countries like Saudi Arabia having a high number of 5G subscribers and the UAE aiming for complete 5G coverage by 2025. Edge data centers are facilitating the deployment of new applications, reducing latency, and optimizing bandwidth to support enterprise digitalization and IoT applications. The construction industry plays a crucial role in the Middle East data center market, with segments like electrical, mechanical, and general construction interdependently contributing to the development of robust data center infrastructure.
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