Market Size of UAE Data Center Construction Industry
Study Period | 2019 - 2030 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 1.60 Billion |
Market Size (2030) | USD 4.30 Billion |
CAGR (2024 - 2030) | 18.10 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
UAE Data Center Construction Market Analysis
The UAE Data Center Construction Market size is estimated at USD 1.60 billion in 2024, and is expected to reach USD 4.30 billion by 2030, growing at a CAGR of 18.10% during the forecast period (2024-2030).
Cloud investments are on the rise, bolstered by enhanced inland cable and submarine connectivity. The UAE is increasingly embracing big data, IoT, and low-latency networks. Moreover, a shift toward sustainable energy sources and a surge in data center investments further propel the country's data center development.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the United Arab Emirates data center construction market is expected to reach 967 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 3.4 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach 173k units by 2030.
- Planned Submarine Cables: Close to 20 submarine cable systems connect the United Arab Emirates, many of which are under construction. One such submarine cable, estimated to be built by 2025, is SeaMeWe-6, which stretches over 21,700 Kilometers with landing points in Abu Dhabi, United Arab Emirates.
UAE Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The United Arab Emirates data center construction market is segmented by (infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power back-up solution (UPS and generators), service - design and consulting, integration, and support and maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling)), racks, and other mechanical infrastructure)), general construction, tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users).
The market sizes and forecasts are provided in values (USD) for all the above segments.
Market Segmentation - By Infrastructure | ||||||||||||||||||||
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General Construction |
Market Segmentation - By Tier Type | |
Tier-I and-II | |
Tier-III | |
Tier-IV |
Market Segmentation - By End User | |
Banking, Financial Services, and Insurance | |
IT and Telecommunications | |
Government and Defense | |
Healthcare | |
Other End Users |
UAE Data Center Construction Market Size Summary
The United Arab Emirates data center construction market is poised for significant expansion, driven by the increasing demand for digital infrastructure across various sectors. The market is experiencing robust growth, with major contributions from the BFSI and e-commerce sectors, which are expected to see substantial advancements in the coming years. The UAE's position as a global leader in digital banking adoption and the rapid growth of its e-commerce sector underscore the burgeoning need for data centers. Additionally, the telecom industry is witnessing a surge in investment due to the proliferation of 4G and the impending rollout of 5G technologies, further fueling the market's expansion. Key regions such as Abu Dhabi and Dubai are emerging as central hubs for data center development, supported by significant investments from major players like Equinix and Khazana.
The market's growth trajectory is supported by the ongoing construction of substantial IT load capacities and raised floor spaces, alongside the installation of numerous racks and submarine cable systems. Abu Dhabi and Dubai are at the forefront, with both cities expected to see considerable increases in their data center capacities. The UAE's strategic initiatives, such as the Golden Visa program and the development of digital infrastructure, are attracting a young, tech-savvy demographic, particularly in Dubai. This demographic shift, coupled with the rapid urbanization and economic diversification in Abu Dhabi, is driving the demand for advanced data center facilities. The market is fairly consolidated, with prominent players like ABB, Caterpillar, Arup, AECOM, and Future Digital Data Systems playing pivotal roles in shaping the industry's landscape.
UAE Data Center Construction Market Size - Table of Contents
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1. MARKET SEGMENTATION
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1.1 Market Segmentation - By Infrastructure
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1.1.1 Market Segmentation - By Electrical Infrastructure
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1.1.1.1 Power Distribution Solution
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1.1.1.1.1 PDU - Basic and Smart - Metered and Switched solutions
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1.1.1.1.2 Transfer Switches
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1.1.1.1.2.1 Static
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1.1.1.1.2.2 Automatic (ATS)
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1.1.1.1.3 Switchgear
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1.1.1.1.3.1 Low Voltage
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1.1.1.1.3.2 Medium Voltage
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1.1.1.1.4 Power Panels and Components
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1.1.1.1.5 Other Power Distribution Solutions
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1.1.1.2 Power Back up Solutions
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1.1.1.2.1 UPS
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1.1.1.2.2 Generators
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1.1.1.3 Service - Design and Consulting, Integration, and Support and Maintenance
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1.1.2 Market Segmentation - By Mechanical Infrastructure
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1.1.2.1 Cooling Systems
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1.1.2.1.1 Immersion Cooling
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1.1.2.1.2 Direct-To-Chip Cooling
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1.1.2.1.3 Rear Door Heat Exchanger
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1.1.2.1.4 In-Row and In-Rack Cooling
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1.1.2.2 Racks
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1.1.2.3 Other Mechanical Infrastructure
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1.1.3 General Construction
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1.2 Market Segmentation - By Tier Type
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1.2.1 Tier-I and-II
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1.2.2 Tier-III
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1.2.3 Tier-IV
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1.3 Market Segmentation - By End User
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1.3.1 Banking, Financial Services, and Insurance
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1.3.2 IT and Telecommunications
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1.3.3 Government and Defense
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1.3.4 Healthcare
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1.3.5 Other End Users
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UAE Data Center Construction Market Size FAQs
How big is the UAE Data Center Construction Market?
The UAE Data Center Construction Market size is expected to reach USD 1.60 billion in 2024 and grow at a CAGR of 18.10% to reach USD 4.30 billion by 2030.
What is the current UAE Data Center Construction Market size?
In 2024, the UAE Data Center Construction Market size is expected to reach USD 1.60 billion.