UAE Data Center Colocation Market - Supply & Demand Analysis 2024-2029

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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

  1. Colocation Supply (MW, Area, Rack Capacity)
  2. Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc..)
  3. Colocation Revenue (Retail & Wholesale Colocation Services)
  4. 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

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UAE DATA CENTER COLOCATION MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
MARKET SIZE - COLOCATION REVENUEUSD 650 Million (2029)
CAGR - COLOCATION REVENUE14.40 (2023-2029)
MARKET SIZE - UTILIZED WHITE FLOOR AREA2,420.9 thousand sq. feet (2029)
MARKET SIZE - UTILIZED RACKS55.02 Thousand Units (2029)
MARKET SIZE - UTILIZED IT POWER CAPACITY535 MW (2029)
BASE YEAR2023
FORECAST YEAR2024-2029
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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?

  1. Transparent research methodology and insights on the market's colocation of demand and supply.
  2. The market size is available in terms of utilized white floor area, IT power capacity, and racks.
  3. The market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity along with the occupancy %.
  4. 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.
  5. The study of the existing UAE data center market landscape and insightful predictions about market size during the forecast period.
  6. An analysis of the current and future colocation demand in UAE by several industries. 
  7. Study on sustainability status in the region.
  8. Analysis of current and future cloud operations in the region.
  9. Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the region.
  10. Snapshot of existing and upcoming third-party data center facilities in UAE
  11. Facilities Covered (Existing): 35
  12. Facilities Identified (Upcoming): 23
  13. Coverage: 5 locations
  14. Existing vs. Upcoming (White Floor Area)
  15. Existing vs. Upcoming (IT Load Capacity)
  16. Data Center Colocation Market in UAE
  17. Colocation Market Revenue & Forecast (2023-2029)
  18. Retail Colocation Revenue (2023-2029)
  19. Wholesale Colocation Revenue (2023-2029)
  20. Retail Colocation Pricing along with Addons
  21. Wholesale Colocation Pricing along with the pricing trends. 
  22. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the UAE data center colocation industry.
  23. Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
  24. 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

  1. Real Estate Investment Trusts
  2. Construction Contractors
  3. Infrastructure Providers
  4. New Entrants
  5. Consultants/Consultancies/Advisory Firms
  6. Corporate & Governments Agencies

Frequently Asked Questions

What is the count of existing and upcoming colocation data center facilities in the UAE?

The UAE has about 35 existing colocation data centers and is witnessing investments in an additional 23 colocation data center facilities.

How much MW of IT power capacity is likely to be utilized in the UAE by 2029?

About 535 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?

Booming cloud migrations & technology, strong inland cable and submarine connectivity, smart city initiatives, increase in colocation data center investments, and rising recognition of big data, IoT, and 5G deployments across the country and other related factors will drive the United Arab Emirates data center colocation market.

Who are the new entrants in the UAE data center industry?

The UAE data center industry's new entrants are Pure Data Centres and Quantum Switch Tamasuk.

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:

  1. The Advent of Smart Cities In The United Arab Emirates
  2. 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:

  1. Colocation Supply (MW, Area, Rack Capacity)
  2. Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc..)
  3. Colocation Revenue (Retail & Wholesale Colocation Services)
  4. Competitive Scenario (Share Analysis by Revenue & MW Capacity)

VENDOR LANDSCAPE

Existing Operators

  1. Khazna Data Centers
  2. Gulf Data Hub
  3. Equinix
  4. Moro Hub
  5. Pacific Controls
  6. Injazat (Core42)
  7. Others*

New Operators

  1. Pure Data Centres
  2. 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

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Frequently Asked Questions

What is the count of existing and upcoming colocation data center facilities in the UAE?

The UAE has about 35 existing colocation data centers and is witnessing investments in an additional 23 colocation data center facilities.

How much MW of IT power capacity is likely to be utilized in the UAE by 2029?

About 535 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?

Booming cloud migrations & technology, strong inland cable and submarine connectivity, smart city initiatives, increase in colocation data center investments, and rising recognition of big data, IoT, and 5G deployments across the country and other related factors will drive the United Arab Emirates data center colocation market.

Who are the new entrants in the UAE data center industry?

The UAE data center industry's new entrants are Pure Data Centres and Quantum Switch Tamasuk.