That’s the equivalent of nearly seven million more people every year, and as a result, MENA's population is expected to nearly double in the next 50 years. With a growing population comes the growing demand for data in an increasingly connected world, which is why more and more data centre developers and investors are becoming active, or at least taking a closer look at the region.

The Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) dominate the regional market, with 46 co-location facilities in operation as of early 2024. Multi-tenant data centre requirements are increasing, and modular construction is gaining feasibility in meeting these escalating requirements. 

The UAE’s data centre industry is seeing rapid growth. It has US $1.2 billion of active data centre projects and a future project pipeline of US $433 million. In Dubai especially, government initiatives such as the Dubai Data Initiative, the Dubai Blockchain Strategy, the Happiness Agenda, the Dubai AI Roadmap and the Dubai Paperless Strategy have led to high demand for these facilities. The Emirates already have one of the highest data consumption levels in the region with 99% of the population active online. This is why Dubai leads as the primary data centre market, followed by Abu Dhabi.

What’s more, the UAE is also leading the way when it comes to Artificial Intelligence (AI) within the Gulf Cooperation Council (GCC). Earlier this year, Abu Dhabi launched the Artificial Intelligence and Advanced Technology Council (AIATC) to guide policies and strategies for research and investments in AI and future technology. Dubai also saw the launch of the Dubai Universal Blueprint for Artificial Intelligence, an annual plan focused on accelerating the adoption of AI applications across different sectors.

We anticipate that the rising demand for cloud computing and the impending adoption of AI means we are going to see the biggest growth in terms of investment in MENA, even after taking into account the advent of cloud more than five years ago.

From an investment perspective, KSA is also a popular location with 22 active co-location facilities and over 40 under construction. Here, Riyadh, Jeddah, KAEC and Dammam are of particular interest. The major data centre players include global and regional operators, including AWS, Equinex, Oracle, Etisalat, du and Khanza.

In line with population growth and increasing data demand, the Middle East's data centre market is expected to double by 2030, making it one of the most exciting regions for the industry in the world.

Further information

Contact Scott Newcombe or Mike Fenton

Data Centres