Goverment Smart City Intiative IoT,5G To Drive UAE Data Center Market

Rising Demand service will drive the data center and cloud services in UAE.

According to report UAE data center Market is set to grow at a CAGR of 18.4% in terms of revenue generation, over the period 2021-2026F.The UAE government’s smart city initiatives, adoption of 5G, Internet of Things (IoT), Artificial Intelligence (AI) are driving the demand for Data Centers.

UAE Data Center is highly fragmented market with Etisalat as the top player with most number of data centers. Majority of the Data Center operators are in collaborative terms with other market players to expand their business and reach to the rising demand of data usage by end users.

UAE Data Centre industry is witnessing robust growth in the era of virtualization and cloud computing. The increased use of data consumption and internet bandwidth in the country is driven by expanding reach of social media, increased use of smart devices, data localization, increased adoption of cloud services and digital transformation journeys of many UAE Data Center companies.


The high upfront costs, higher power tariffs, maintenance-related issues, security and high real estate costs are increasingly tipping the scale in favor of third-party Data Centre operators. Additionally, major cloud service providers such as AWS, Huawei, Oracle are also exploring setting up their own Data Centers to provide Public and Private Cloud Services, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS).

The Cloud Services Market in UAE is highly fragmented comprising various global and local cloud services operators with Microsoft being the most popular cloud services provider.

UAE Cloud Services Market is set to grow at a CAGR of 16.9% in terms of revenue generation, over the period 2021-2026F. The growing and influential role of cloud operators toward embracing technologies and processes such as cloud, business intelligence (BI), analytics, customer relationship management (CRM), digital business and marketing, are contributing to fuel the demand for cloud services.


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October 16, 2022