Report Summary:

MARKET SIZE BY INVESTMENT 2030: USD 7.70 Billion

MARKET SIZE BY INVESTMENT 2024: USD 2.61 Billion

CAGR - INVESTMENT (2024-2030): 19.77%

MARKET SIZE - COLOCATION REVENUE (2030): USD 5.24 Billion

MARKET SIZE AREA (2030): 2.84 million sq. feet

POWER CAPACITY (2030): 681.5 MW (2030)

BASE YEAR: 2024

FORECAST YEAR: 2025-2030

MARKET SEGMENTS: Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography

GEOGRAPHICAL ANALYSIS: UAE, Saudi Arabia, Israel, Oman, Qatar, Kuwait, Turkey, Bahrain

AI Boom Redefines the Middle East: Oracle's $14B Bet Fuels Data Center Growth

Across the Middle East, enterprises in healthcare, finance, transport, and the public sector are rapidly adopting Artificial Intelligence (AI) to enhance productivity and decision-making. This digital shift is driving hyperscale companies to expand their AI infrastructure footprint across the region. In May 2025, Oracle announced a $14 billion investment over the next decade to scale its cloud and AI service offerings in Saudi Arabia, signaling strong confidence in the region's digital future. As AI adoption surges, the demand for advanced, AI-ready data centers capable of processing and storing massive data volumes is rising sharply, positioning the Middle East as a critical hub for next-generation infrastructure investments.

The Middle East's Data Centers Turn Sustainability into Strategy

With climate-neutral goals gaining momentum, data center operators across the Middle East are intensifying their focus on sustainability. Operators are integrating renewable energy sources, efficient cooling systems, and water-saving technologies to reduce environmental impact and optimize performance. In March 2025, Pure Data Centres equipped its Abu Dhabi facility with HVO-powered generators to cut emissions, while Khazna Data Centers transitioned all its UAE facilities to biofuel-powered generators by July 2024, replacing diesel systems entirely. These initiatives highlight the region's commitment to green digital infrastructure and responsible growth.

Strategy Meets Technology: Smart Cities Anchor the Middle East's Digital Ambition

The rise of smart cities is redefining the Middle East's urban and digital landscape. Countries like the UAE and Saudi Arabia are leading this transformation through large-scale projects that integrate IoT, AI, and big data to enhance public services and sustainability. Cities such as Abu Dhabi and Dubai have emerged as global smart city leaders, ranking fourth and fifth respectively in the IMD Smart City Index 2025. This surge in smart city developments, coupled with the region's expanding digital economy, is accelerating demand for robust digital infrastructure and data center capacity to support a hyper-connected, data-driven future.

Middle East Data Center Colocation Market Highlights

• AI Driving Data Center Boom: Adoption of Artificial Intelligence and national AI strategies across the UAE, Saudi Arabia, Qatar, and Kuwait are accelerating data center investments across the region.
• $33.79 Billion Investment Outlook (2025–2030): The Middle East colocation market will attract nearly $33.79 billion, with Saudi Arabia leading at $13.17 billion, accounting for about 39% of total regional investments.
• Strong Growth Trajectory: Between 2024 and 2030, the market is projected to grow by ~195%, supported by large-scale hyperscale and colocation developments.
• Evolving Competitive Landscape: Established players such as Khazna, Equinix, Gulf Data Hub, and center3 are expanding, while new entrants like DataVolt, Techtonic, and ezditek are reshaping competition across emerging hubs like Israel, Turkey, and Oman.