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United Arab Emirates Data Center Power Market Size (2024 - 2029)

The United Arab Emirates Data Center Power Market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations for local data security, and rising investments from domestic players. The market's expansion is reflected in the development of IT load capacity, with a notable focus on mega data centers, which are expected to lead the growth trajectory. Additionally, the construction of raised floor areas and the installation of racks are set to increase substantially, with Abu Dhabi anticipated to accommodate the majority. The connectivity infrastructure is also being enhanced with the development of submarine cable systems, further supporting the market's growth.

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Market Size of United Arab Emirates Data Center Power Industry

United Arab Emirates Data Center Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 152.80 Million
Market Size (2029) USD 317.80 Million
CAGR (2024 - 2029) 15.40 %
Market Concentration Medium

Major Players

United Arab Emirates Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

United Arab Emirates Data Center Power Market Analysis

The United Arab Emirates Data Center Power Market size is estimated at USD 152.80 million in 2024, and is expected to reach USD 317.80 million by 2029, growing at a CAGR of 15.40% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

  • Under construction IT load capacity: The upcoming IT load capacity of the United Arab Emirates data center rack market is expected to reach 840 MW by 2029. Mega data center type is expected to witness the highest growth during the forecast period in the UAE. Players invest in the mega system and contribute to its growth. For example, Moro Hub, a subsidiary of Dubai energy company DEWA, ​​has started building a solar-powered data center. The 100MW power plant was announced in May 2021.
  • Under construction raised floor space: The country's construction of raised floor area is expected to increase to 5.0 million sq. ft by 2029.
  • Planned racks: The country's total number of racks to be installed is expected to reach above 2,50,000 units by 2029. Abu Dhabi is expected to house the maximum number of racks by 2029.
  • Planned submarine cables: There are more than 27 submarine cable systems connecting the United Arab Emirates, and many are under construction. For instance, in March 2023, The Telecommunications Corporation (EITC) announced plans to connect the United Arab Emirates and Oman via a newly opened 275-kilometer international fiber optic submarine cable named Oman Emirates Gateway (OEG).

United Arab Emirates Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The United Arab Emirates data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Power Infrastructure
Electrical Solution
UPS Systems
Generators
Power Distribution Solutions
PDU
Switchgear
Critical Power Distribution
Transfer Switches
Remote Power Panels
Others
Service
End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End Users
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United Arab Emirates Data Center Power Market Size Summary

The United Arab Emirates data center power market is poised for significant growth, driven by increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by the development of mega data centers, with companies like Moro Hub leading initiatives such as solar-powered facilities. The expansion of IT load capacity, raised floor space, and the installation of numerous racks are indicative of the robust infrastructure development underway. Additionally, the establishment of submarine cable systems, such as the Oman Emirates Gateway, underscores the UAE's commitment to enhancing its digital connectivity. The proliferation of mobile internet usage and high data consumption further fuels the demand for data center power solutions, with switched PDUs playing a crucial role in optimizing energy efficiency and operational reliability.

The UAE government's strategic initiatives aim to foster a knowledge-based economy, reducing reliance on oil revenues and promoting private sector growth. This is evident in the implementation of the UAE AI Strategy 2031 and partnerships with global tech giants like SAP to accelerate digital transformation. The telecommunications sector, bolstered by 4G and upcoming 5G advancements, is a key driver of data center market expansion. Major industry players, including ABB Ltd, Caterpillar Inc., and Eaton Corporation, are actively enhancing their offerings through strategic partnerships and technological innovations, such as hydrogen fuel cells for eco-friendly backup power. These developments, coupled with the UAE's ambitious economic diversification goals, position the data center power market for sustained growth and competitive advantage in the region.

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United Arab Emirates Data Center Power Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Infrastructure

      1. 2.1.1 Electrical Solution

        1. 2.1.1.1 UPS Systems

        2. 2.1.1.2 Generators

        3. 2.1.1.3 Power Distribution Solutions

          1. 2.1.1.3.1 PDU

          2. 2.1.1.3.2 Switchgear

          3. 2.1.1.3.3 Critical Power Distribution

          4. 2.1.1.3.4 Transfer Switches

          5. 2.1.1.3.5 Remote Power Panels

          6. 2.1.1.3.6 Others

      2. 2.1.2 Service

    2. 2.2 End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End Users

United Arab Emirates Data Center Power Market Size FAQs

The United Arab Emirates Data Center Power Market size is expected to reach USD 152.80 million in 2024 and grow at a CAGR of 15.40% to reach USD 317.80 million by 2029.

In 2024, the United Arab Emirates Data Center Power Market size is expected to reach USD 152.80 million.

United Arab Emirates Data Center Power Market Report Snapshots

United Arab Emirates Data Center Power Market Size and Share Analysis - Growth Trends and Forecasts (2024 - 2029)