Middle East Data Center Construction Market - Industry Outlook & Forecast 2025-2030

The Middle East data center construction market by investment is expected to grow at a CAGR of 23.91% from 2024 to 2030.

KEY HIGHLIGHTS

• The Middle East data center construction market continues to experience rapid growth, driven by factors such as digital transformation, increasing cloud adoption, and ambitious smart city projects. Countries like the UAE and Saudi Arabia are leading this trend with significant initiatives, including the National AI Strategy 2031 of UAE and the National Strategy for Data & AI of Saudi Arabia. These efforts aim to position the region as a global hub for AI.
• The push for digital and AI-centric goals drives the demand for advanced data center infrastructure, necessitating state-of-the-art technologies such as GPUs, AI-optimized systems, and sustainable solutions. As the demand for AI and machine learning (ML) workloads increases, data centers must adapt to support high-density GPU clusters that are essential for AI processing. This technological shift also requires the development of secure supply chains for exporting high-tech equipment while navigating international regulations.
• In addition, the challenging climate of the region makes it essential to adopt advanced cooling technologies, such as liquid and immersion cooling, to maintain efficient performance. To thrive in this emerging market, data center providers should adopt integrated manufacturing and service models for quicker deployments and improved cost control.
• Understanding regional regulations and cultural nuances is crucial for successfully navigating the Middle East data center construction market. Strategic partnerships with regional players, such as the collaboration between Microsoft and G42, can help accelerate innovation. With its strategic geographic position between Europe, Asia, and Africa, along with major projects like Saudi Arabia’s Neom driving future demand, the Middle East is poised to become a global data center hub, supported by significant investments in digital infrastructure and 5G deployment.

KEY TRENDS

Adoption of AI

The Middle East region is experiencing a notable increase in the adoption of AI, driven by technological advances and growing recognition of its transformative potential across various sectors. Countries such as the UAE and Saudi Arabia are at the forefront of AI integration, with initiatives spanning healthcare, finance, transportation, and more. For instance, the UAE has launched the “UAE Strategy for Artificial Intelligence” to position itself as a global leader in AI by 2031. Similarly, the National AI Strategy in Saudi Arabia aims to drive economic growth and enhance quality of life through AI-driven innovation.

Usage of Green and Sustainable Sources

The use of green and sustainable sources in the Middle East data center construction market is gaining momentum as operators and governments prioritize energy efficiency, reduce carbon footprints, and align with global sustainability goals. Khazna Data Centers focuses on energy-efficient operations and renewable energy sourcing. Equinix is targeting carbon-neutral operations globally, including in the Gulf region. STC (Saudi Telecom Company) is including green initiatives in its data center designs, supporting the Kingdom’s Vision 2030 goals.

Smart City Initiatives

Smart city initiatives are rapidly emerging in the Middle East region, fueled by a commitment to improve urban living, promote sustainability, and drive economic growth. Pioneering countries like the UAE, Saudi Arabia, and Qatar are spearheading ambitious projects that aim to utilize technology to enhance infrastructure, transportation, and public services. For instance, Dubai’s Smart Dubai 2021 strategy seeks to turn the city into a global innovation hub by incorporating advanced technologies such as AI, IoT, and blockchain. Additionally, the NEOM project in Saudi Arabia is anticipated to be one of the most notable smart cities worldwide, with an estimated investment of around USD 500 billion, and is expected to make a significant impact once it becomes operational in 2025.

SEGMENTATION INSIGHTS

There is a notable shift toward sustainable infrastructure with increasing adoption of biofuels, solar energy, and liquid cooling solutions in the Middle East data center construction market. As the region faces high energy demands and extreme temperatures, data center operators prioritize energy-efficient and eco-friendly technologies. Furthermore, biofuels are being explored as alternative power sources to reduce reliance on traditional grid energy, helping to lower carbon footprints. On the cooling side, liquid cooling technologies are becoming increasingly popular due to their superior efficiency in handling the high heat output of modern, high-performance computing systems. These innovations not only enhance cooling efficiency but also contribute to lowering the overall environmental impact of data center operations in the region.

GEOGRAPHICAL ANALYSIS

Countries like the UAE, Saudi Arabia, Israel, and Qatar have emerged as key players, leveraging their connectivity advantages to attract global enterprises and cloud providers. The UAE, particularly Dubai, serves as a regional data center hub with robust infrastructure and international connectivity, while Saudi Arabia invests heavily in digital transformation and smart city projects, notably through its Vision 2030 initiative. This geographical positioning, combined with improving digital infrastructure, creates a dynamic ecosystem that supports the increasing demand for data storage, cloud services, and edge computing across the region. The strategic location of the region is poised to play a critical role in the future of global data networks and support the Middle East data center construction market growth.

• Middle East
• UAE
• Saudi Arabia
• Israel
• Oman
• Qatar
• Kuwait
• Jordan
• Bahrain
• Other Middle Eastern Countries

VENDOR LANDSCAPE

Key support infrastructure providers in the Middle East data center construction market include Airedale, ABB, Alfa Laval, Caterpillar, Johnson Controls, Schneider Electric, Siemens, and Vertiv. These companies facilitate the seamless integration of emerging technologies like AI and 5G within data center settings, assisting operators in addressing the increasing demand for high-performance computing.

On the investment side, prominent players in the Middle East data center construction market include Khazna Data Centers, center3, Equinix, Gulf Data Hub, Batelco, Mobily, Ooredoo, Edgnex Data Centres by DAMAC, and Quantum Switch, among others. Additionally, notable newcomers such as Agility, DataVolt, Pure Data Centres, Anan, Qareeb Data Centres, and others are entering the Middle East data center construction market. These new entrants are pivotal in fostering innovation and have the potential to drive down costs for both operators and consumers. Their focus on advanced cooling and energy-efficient solutions contributes to expanding regional capacity to satisfy the rising demand for cloud, AI, and edge computing services.

Key Data Center Support Infrastructure Providers

• ABB
• Airedale
• Alfa Laval
• Canovate
• Caterpillar
• Cummins
• Daikin Applied
• Delta Electronics
• EAE Group
• EATON
• Enrogen
• Envicool
• Generac Power Systems
• HITEC Power Protection
• Johnson Controls
• Legrand
• Mitsubishi Electric
• Piller Power Systems
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Vertiv

Key Data Center Construction Contractors

• AECOM
• ALEC Data Center Solutions
• Aldar
• Al Latifia Trading & Contracting
• Anel Group
• Arup
• Ashi & Bushnag
• Ashtrom Group
• ASU
• AtkinsRéalis
• Auerbach HaLevy Architects
• Azura Consultancy
• Black & White Engineering
• Capitoline
• Core Emirates
• Dar Group
• Datalec Precision Installations
• DC Pro Engineering
• Deerns
• DMC Global Partners
• Edarat Group
• EGEC
• Electra
• ENMAR Engineering
• Group AMANA
• Harinsa Qatar
• HATCO
• HHM Group
• Hill International
• ICS Nett
• INT’LTEC
• ISG
• JAMED
• James L. Williams (JLW)
• John Paul Construction
• Laing O’Rourke
• Laith Electro Mechanical
• Linesight
• M+W Group (Exyte)
• Mace
• McLaren Construction Group
• MEC - Margolin Bros. Engineering & Consulting
• Mercury
• MEMA Architecture
• MIS
• NDA Group
• Prota Engineering
• PTS
• Qatar Site & Power
• Raghav Contracting
• RED Engineering
• RW Armstrong
• SANA Control Systems
• Site & Power DK
• Scientechnic
• Skorka Architects
• Sudlows
• Telal Engineering & Contracting
• Turner & Townsend
• UBIK
• Yeda Engineering

Key Data Center Investors

• Adgar Investments & Development
• Amazon Web Services
• Batelco
• Bynet Data Communications
• center3 (stc)
• Compass Datacenters
• EdgeConneX
• Edgnex Data Centres by DAMAC
• Equinix
• Global Technical Realty
• Gulf Data Hub
• Google
• Huawei Technologies
• Khazna Data Centers
• MedOne
• MEEZA
• Microsoft
• Mobily
• Moro Hub
• Oman Data Park
• Ooredoo
• Oracle
• Quantum Switch
• Serverfarm
• Telehouse
• TONOMUS (ZeroPoint DC)
• Turkcell
• Türk Telekom

New Entrants

• Agility
• Anan
• DataVolt
• NED
• Pure Data Centres Group
• Qareeb Data Centres
• Serverz Data Center
• Techtonic

The report includes the investment in the following areas:

• Support Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction
• Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Racks
• Other Mechanical Infrastructure
• Cooling Systems
• CRAC and CRAH Units
• Chillers Units
• Cooling Towers, Condensers, and Dry Coolers
• Other Cooling Units
• Cooling Techniques
• Air-based Cooling
• Liquid-based Cooling
• General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM/BMS Solutions
• Tier Standards
• Tier I & Tier II
• Tier III
• Tier IV

KEY QUESTIONS ANSWERED:

1. How big is the Middle East data center construction market?

2. What is the growth rate of the Middle East data center construction market?

3. What is the estimated market size in terms of area in the Middle East data center construction market by 2030?

4. How many MW of power capacity is expected to reach the Middle East data center construction market by 2030?

5. What are the key trends in the Middle East data center construction market?