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UAE data center sector set to grow 10% over next five years amid AI expansion
The UAE's data center economy will see an estimated 10% boom in the next five years as the nation pushes the limits of its compute capacity.
The UAE’s data center sector is projected to grow by 10% over the next five years as the nation expands its computing capacity to support rapid advancements in AI.
Data centers are a key pillar in the UAE’s digital economy, which is set to experience significant growth by 2030. Supported by strategic partnerships with Amazon Web Services (AWS), Google, Microsoft, and Alibaba, the UAE currently houses 38 data centers, primarily located in Abu Dhabi and Dubai. Khazna Data Center, Moro Hub, and Equinix Inc. are central to the country’s AI innovation efforts.
The increase in data centers across the UAE has also spurred the growth of specialized IT services and products. Companies like Hitches and Glitches (H&G), which provide data center maintenance services, emphasize the importance of meticulous cleaning for optimal performance. By offering services that complement and enhance the data center ecosystem, the UAE is projected to develop a market worth $2.62 billion (approximately AED 9.7 billion) by 2029.
As part of the UAE’s Fourth Industrial Revolution, ‘Operation 300bn’ plays a vital role in transforming the nation’s digital landscape and accelerating adoption. This ambitious initiative includes widespread partnerships aimed at advancing 5G, robotics, AI, and digital twin technology—all powered by renewable energy.
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