Middle East Data Center Market Size to Surpass USD 17,861.1 Million by 2033 | With a 14.32% CAGR

Middle East Data Center Market Overview

Market Size in 2024: USD 5,355.6 Million

Market Size in 2033: USD 17,861.1 Million

Market Growth Rate 2025-2033: 14.32%

According to IMARC Group's latest research publication, "Middle East Data Center Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Middle East data center market size reached USD 5,355.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 17,861.1 Million by 2033, exhibiting a growth rate (CAGR) of 14.32% during 2025-2033.

How AI is Reshaping the Future of Middle East Data Center Market

• Hyperscale AI Infrastructure Boom: The UAE and US are planning a massive 5GW AI data center campus run by G42 and American hyperscalers, with Microsoft investing $1.5 billion in G42 partnerships to power next-generation AI workloads.
• Smart City Digital Backbone: NEOM's $500 billion smart city project requires unprecedented data processing capabilities, driving demand for edge computing and hyperscale facilities to support IoT networks across multiple sectors.
• Regional AI Hub Development: The Middle East is positioning itself as the next AI infrastructure hub of EMEA, with Qatar investing $550 million in data center expansion and the UAE attracting global AI talent through strategic economic diversification.
• Hyperscaler Migration: Global hyperscalers are rapidly establishing presence in the region, with capacity projected to triple from 1GW in 2024 to 3.3GW over the next five years, transforming the regional digital landscape.
• Government-Led Innovation: Saudi Arabia's Vision 2030 initiative is driving massive investments in digital transformation, with data centers becoming critical infrastructure for supporting national economic diversification goals.

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Middle East Data Center Market Trends & Drivers:

• The Middle East data center market is experiencing explosive growth, fueled by ambitious government initiatives and massive private investments. The region's capacity is projected to triple from 1GW in 2024 to 3.3GW over the next five years, driven by digital transformation mandates across the Gulf states. The colocation market in the six Gulf Cooperation Council (GCC) countries is forecasted to grow 2.2 times by 2025, from 383 MW of IT load to an estimated 839 MW. This surge is powered by smart city projects like NEOM, which has allocated $500 billion from Saudi Arabia's Public Investment Fund, creating unprecedented demand for data processing and storage infrastructure that can handle everything from IoT sensors to AI-powered urban management systems.
• The hyperscale revolution is reshaping the regional landscape as global tech giants establish their Middle Eastern footprint. Microsoft and G42 are developing a 5GW AI data center campus, while companies like Huawei have announced plans to invest $400 million in Saudi Arabia's cloud region over five years. This influx of international investment is complemented by regional players scaling up operations - KKR has formed a strategic partnership with Gulf Data Hub to scale one of the Middle East's largest independent data center platforms. The result is a perfect storm of demand and supply, with enterprises across banking, telecommunications, and government sectors driving adoption rates that far exceed global averages.
• The 5G and edge computing boom is creating new categories of demand that traditional data centers couldn't handle. With the UAE achieving significant urban 5G coverage and Saudi Arabia rolling out nationwide networks, businesses need low-latency processing capabilities closer to end users. Qatar has invested $550 million in expanding data center infrastructure in September 2024, while the broader region benefits from its strategic location as a bridge between Europe, Asia, and Africa. This geographical advantage, combined with abundant energy resources and government support, is transforming the Middle East into what industry experts call "the next AI infrastructure hub of EMEA," attracting not just hyperscalers but also fintech companies, streaming services, and gaming platforms that need regional presence.

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Middle East Data Center Industry Segmentation:

The report has segmented the market into the following categories:

Component Insights:

• Solution
• Services

Type Insights:

• Colocation
• Hyperscale
• Edge
• Others

Enterprise Size Insights:

• Large Enterprises
• Small and Medium-sized Enterprises

End User Insights:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others

Breakup by Region:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

• Etisalat
• Gulf Data Hub
• Khazna Data Centers
• MEEZA

Recent News and Developments in Middle East Data Center Market

• January 2025: KKR and Gulf Data Hub formed a strategic partnership to scale one of the Middle East's largest independent data center platforms, targeting hyperscale demand across the region with enhanced capacity and connectivity solutions.
• March 2025: The Middle East data center construction market reached new heights with UAE and Saudi Arabia leading investments through AI-driven strategies, positioning the region as a critical infrastructure hub for global technology companies.
• May 2025: Microsoft and G42 announced plans for a groundbreaking 5GW AI data center campus, representing one of the largest single infrastructure investments in the region and setting new standards for AI-optimized facilities.

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