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THE UAE DATA CENTER COLOCATION MARKET SIZE WAS VALUED AT USD 290 MILLION IN 2023 AND IS EXPECTED TO REACH USD 650 MILLION BY 2029, GROWING AT A CAGR OF 14.40% DURING THE FORECAST PERIOD
The UAE Data Center Colocation Market Report Includes
- Colocation Supply (MW, Area, Rack Capacity)
- Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc..)
- Colocation Revenue (Retail & Wholesale Colocation Services)
- Competitive Scenario (Market Share Analysis by Revenue & MW Capacity)
Get Insights on 35 Existing Colocation Data Center Facilities and 23 Upcoming Facilities across the UAE
This report includes market data points, ranging from trend
analyses to market estimates & forecasts that you can customize
UAE DATA CENTER COLOCATION MARKET REPORT SCOPE
REPORT ATTRIBUTE | DETAILS |
---|---|
MARKET SIZE - COLOCATION REVENUE | USD 650 Million (2029) |
CAGR - COLOCATION REVENUE | 14.40 (2023-2029) |
MARKET SIZE - UTILIZED WHITE FLOOR AREA | 2,420.9 thousand sq. feet (2029) |
MARKET SIZE - UTILIZED RACKS | 55.02 Thousand Units (2029) |
MARKET SIZE - UTILIZED IT POWER CAPACITY | 535 MW (2029) |
BASE YEAR | 2023 |
FORECAST YEAR | 2024-2029 |
COLOCATION DEMAND AND SUPPLY HIGHLIGHTS
The UAE data center colocation market size was valued at USD 290 million in 2023 and is expected to reach USD 650 million by 2029, growing at a CAGR of 14.40% during the forecast period. The UAE has about 35 colocation data centers, most of which are being developed according to Tier III standards. The country has local and global operators such as Equinix, Khazna Data Centers, and Gulf Data Hub. The market is currently witnessing the entry of new operators such as Pure Data Centres and Quantum Switch Tamasuk.
The UAE data center colocation market has significant potential for growth during the forecast period. The average occupancy of data center facilities is expected to reach about 89%, indicating that the vacancy rate will only be about 11% or less by 2029. Furthermore, Khazna Data Centers holds the highest market share of over 59% in the UAE as of June 2024, with a power capacity of over 172 MW. However, this share will likely change during the forecast period as many operators such as Gulf Data Hub and a few others, are developing more data center facilities.
The United Arab Emirates data center colocation market is growing rapidly, driven by increasing internet penetration, smart city developments, rising data consumption, and booming cloud-technology adoption by several companies across the country, offered by tech giants like Microsoft, Oracle, and Alibaba. Furthermore, the cloud & IT sector led the current colocation demand in the country, followed by the enterprise sector, telecom, and government. We expect these sectors to decline during the forecast period as most e-companies will likely migrate their workloads to the cloud.
WHATS INCLUDED?
- Transparent research methodology and insights on the market's colocation of demand and supply.
- The market size is available in terms of utilized white floor area, IT power capacity, and racks.
- The market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity along with the occupancy %.
- An assessment and snapshot of the colocation investment in terms of core & shell area, power, and rack in the UAE and comparison between other Middle Eastern countries.
- The study of the existing UAE data center market landscape and insightful predictions about market size during the forecast period.
- An analysis of the current and future colocation demand in UAE by several industries.
- Study on sustainability status in the region.
- Analysis of current and future cloud operations in the region.
- Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the region.
- Snapshot of existing and upcoming third-party data center facilities in UAE
- Facilities Covered (Existing): 35
- Facilities Identified (Upcoming): 23
- Coverage: 5 locations
- Existing vs. Upcoming (White Floor Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data Center Colocation Market in UAE
- Colocation Market Revenue & Forecast (2023-2029)
- Retail Colocation Revenue (2023-2029)
- Wholesale Colocation Revenue (2023-2029)
- Retail Colocation Pricing along with Addons
- Wholesale Colocation Pricing along with the pricing trends.
- An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the UAE data center colocation industry.
- Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
- The vendor landscape of each existing and upcoming colocation operator is based on the existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.
TARGET AUDIENCE
- Real Estate Investment Trusts
- Construction Contractors
- Infrastructure Providers
- New Entrants
- Consultants/Consultancies/Advisory Firms
- Corporate & Governments Agencies
Frequently Asked Questions
What is the count of existing and upcoming colocation data center facilities in the UAE?
How much MW of IT power capacity is likely to be utilized in the UAE by 2029?
What factors are driving the UAE data center colocation market?
Who are the new entrants in the UAE data center industry?
The UAE data center colocation market is projected to reach USD 650 million by 2029, growing at a CAGR of 14.40% from 2023 to 2029.
The following factors are likely to contribute to the growth of the UAE data center colocation market during the forecast period:
- The Advent of Smart Cities In The United Arab Emirates
- Enterprise Operators Migrating To Cloud Infrastructure
Base Year: 2023
Forecast Year: 2024-2029
The report considers the present scenario of the UAE data center colocation market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the UAE data center colocation market.
The report includes:
- Colocation Supply (MW, Area, Rack Capacity)
- Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc..)
- Colocation Revenue (Retail & Wholesale Colocation Services)
- Competitive Scenario (Share Analysis by Revenue & MW Capacity)
VENDOR LANDSCAPE
Existing Operators
- Khazna Data Centers
- Gulf Data Hub
- Equinix
- Moro Hub
- Pacific Controls
- Injazat (Core42)
- Others*
New Operators
- Pure Data Centres
- Quantum Switch Tamasuk
For more details, please reach us at [email protected]
ABOUT ARIZTON
ABOUT OUR DATA CENTER CAPABILITIES
RESEARCH METHODOLOGY
MARKET SCOPE
MARKET DEFINITIONS
CHAPTER 01 – MARKET SNAPSHOT
Colocation Market Snapshot
Middle East Vs UAE Colocation Market Comparison
CHAPTER 02 - SUPPLY & DEMAND ANALYSIS
Existing vs Upcoming Data Center Facilities
Market by Utilized Area
Market by Utilized Racks
Market by IT Power Capacity (Core & Shell, Installed and Utilized- MW)
Colocation Demand by Industry
CHAPTER 03 – MARKET GROWTH FACTORS
Factors Attracting Colocation Investment in the UAE
Sustainability Status in the UAE
Cloud Connectivity
Cloud on Ramps & Investment in the UAE
Submarine Cables & Inland Connectivity
CHAPTER 04 – COLOCATION REVENUE & PRICING ANALYSIS
Colocation Market by Revenue
Retail Vs Wholesale Colocation
Retail Colocation Pricing and Addons
Wholesale Colocation Pricing
Key Pricing Trends
CHAPTER 05 - MARKET DYNAMICS
Key Trends in the Market
Key Enablers / Drivers in the Market
Key Restraints in the Market
CHAPTER 06 – COMPETITIVE LANDSCAPE
Competitive Landscape by Colocation Operators
Market Share by Colocation Revenue
Market Share by IT Power Capacity
Existing Colocation Operators
New Operators
QUANTITATIVE SUMMARY
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Frequently Asked Questions
What is the count of existing and upcoming colocation data center facilities in the UAE?
How much MW of IT power capacity is likely to be utilized in the UAE by 2029?
What factors are driving the UAE data center colocation market?
Who are the new entrants in the UAE data center industry?