The UAE is spearheading digital transformation in the Middle East as the government’s push for digitization fuels the demand for data centers. According to a whitepaper by JLL presented at Cityscape Global, the UAE boasts around 28 active colocation facilities, making it a frontrunner in the region. Many data centers and cloud providers are either establishing themselves in the UAE or looking to expand their presence there.
Dubai and Abu Dhabi are recognized as the country’s prime data center markets, and they rank among the top 20 smart cities globally. The UAE’s efforts align with its goal of becoming a strong digital economy and solidifying its position in the region’s data center landscape. Key players like Khazna and Equinix are accelerating this momentum, with Khazna planning to add 12 new facilities and achieve a total capacity of 300 megawatts in just two years.
The UAE’s outstanding internet penetration rate of over 98% and its status as a regional hub for Artificial Intelligence (AI) innovation, driven by initiatives like Smart Dubai and Dubai Artificial Intelligence in Health, make it an attractive destination for data center investments. The country also aims to integrate AI across various sectors, further enhancing its appeal to investors.
JLL’s whitepaper emphasizes the role of hyper scalers in shaping the thriving data center market in the region. While the Middle East attracts significant investments from top hyper scalers and cloud providers like Amazon Web Services and Microsoft, the UAE currently leads with the largest presence of hyper scalers. These companies are deploying novel cloud availability zones through their data centers in the UAE, enhancing business competitiveness with advanced architecture and robust security measures.
As the data center market in the Middle East and Africa is still in its early stages, it is expected to grow rapidly, given the region’s potential for expansion. Currently, there are around 73 operational colocation facilities in the UAE, Saudi Arabia, Qatar, Oman, and Kuwait.
