Abu Dhabi and Dubai Ascend as Leading Global Data Center Markets by 2025

Abu Dhabi and Dubai: The Future of Data Centers



In a groundbreaking report by Cushman & Wakefield, titled the 2025 Global Data Center Market Comparison, Abu Dhabi and Dubai have been recognized as the foremost emerging markets in the global data center arena. This revelation sheds light on the rapid development of the UAE as a crucial hub for digital infrastructure, drawing substantial attention from investors and tech giants alike.

UAE: A Growing Influence


The findings of the report are based on an analysis of twenty critical factors such as power availability, fiber connectivity, the development pipeline, and land pricing, positioning Abu Dhabi at the pinnacle of the rankings, followed closely by Dubai. As the world witnesses a digital revolution, the UAE has meticulously crafted an environment conducive to massive investments in technology-driven infrastructure. According to Edward Macura, the Country Head at Cushman & Wakefield Core, there is a direct correlation between thoughtful long-term infrastructure strategies and the current market performance seen in these emirates.

The Powerhouses of Digital Infrastructure


The UAE has made significant strides in establishing a robust data center ecosystem. With over 250 megawatts (MW) of operational capacity and an additional 500 MW in various stages of development, the country is poised for unparalleled growth. Notably, the proposed Stargate UAE project in Abu Dhabi—featuring partnerships with industry leaders such as OpenAI, Oracle, and Nvidia—is anticipated to deliver an astounding 5 gigawatts (GW) at its height. Meanwhile, Dubai's du and Microsoft have embarked on creating a $540 million hyperscale facility, further solidifying the region's status as a leader in digital infrastructure.

The aggressive growth is accentuated by expanding cloud services from global giants like AWS, Alibaba, and Equinix that continue to establish their presence across both emirates. Dominating the operator market, Khazna Data Centers currently commands a staggering 59% of the regional market share, demonstrating the intense competition and demand in this sector. Additionally, local enterprises like Emirates Group are transitioning to eco-friendly data solutions, such as its recent move to a solar-powered facility at the Mohammed bin Rashid Solar Park.

Capital Commitments and Consistent Growth


Forecasting growth, the UAE data center market was valued at approximately $1.26 billion in 2024, with projections estimating it will surge to $3.33 billion by 2030. This trend is reflective of both the escalating demand for commercial properties and the ensuing increase in data usage. Major capital initiatives further bolster this growth. An investment partnership between Abu Dhabi's ADQ, Energy Capital Partners, and others is expected to inject $25 billion into power infrastructure, creating an environment prepared for future demands in technology. Additionally, Microsoft, MGX, and BlackRock are backing a monumental $30 billion initiative focused on artificial intelligence, further indicating the UAE's commitment to remaining at the forefront of technological advancement.

As Macura states, “Investment decisions are increasingly based on performance instead of mere potential,” highlighting the vital role of meeting deadlines and sustaining infrastructure alongside market demand. Noteworthy projects like the Stargate UAE campus are set to deliver its first 1 GW by 2026, and Khazna's 100 MW facility in Ajman is progressing on schedule, with phased deliveries expected within 24 months.

The Road Ahead


Geopolitical shifts and increasing workloads related to AI demand necessitate innovative deployment strategies, positioning the UAE as a strategic player in meeting future challenges. Macura points out that the heightened interest we observe currently is likely not a fleeting trend. Investors and occupiers are beginning to align their visions around long-term cycles of growth, ensuring that operational reliability and forward-thinking capacity become the benchmarks for market success.

With both Abu Dhabi and Dubai firmly on the map as data center leaders, the UAE is not just adapting to the global digital infrastructure landscape but is set to influence it significantly. Through consistent investment, infrastructural advancements, and a clear strategic vision, these emirates are well-positioned to harness the full potential of the data economy well into the future.

Topics Consumer Technology)

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