Dublin, Feb. 09, 2026 (GLOBE NEWSWIRE) — The “Middle East Data Center – Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)” has been added to ResearchAndMarkets.com’s offering.
The Middle East Data Center Market is projected to expand from USD 3.05 billion in 2025 to USD 3.52 billion in 2026, growing to USD 7.19 billion by 2031, with a CAGR of 15.36% over 2026-2031. The installed base is anticipated to increase from 1.82 thousand megawatts in 2025 to 2.84 thousand megawatts by 2030, growing at a 9.23% CAGR during the forecast period of 2025-2030. This growth is propelled by robust sovereign funding, hyperscale capacity demands, increased subsea cable landings, and cloud-first regulations, which accelerate capital and talent influx, enhancing utilization rates.
Sovereign initiatives like Saudi Arabia’s HUMAIN and the UAE-France AI pact assure consistent anchor demand for GPU-dense halls. Meanwhile, experimental oil-field waste-gas-to-power projects suggest potential energy cost reductions, enhancing regional competitiveness over Europe and parts of Asia. Operators that align land and power control with liquid-cooling expertise are ensuring long-term commitments from hyperscalers mitigating capacity shortages.
Competition intensifies as local and international players vie for advantageous sites, driving land prices up and expediting inter-campus fiber connections to enhance cross-border workload mobility.
Middle East Data Center Market Trends and Insights
Rapid Adoption of National Cloud-First Policies in Saudi Arabia and the UAE: Cloud mandates compel state entities to shift workloads rapidly, embedding data-sovereignty requirements and fostering sovereign-cloud zones with premium pricing. This necessitates partnerships with licensed local operators, enhancing domestic value capture and skill transfer.
Government-Backed Hyperscale Capacity Targets Exceeding 1.3 GW by 2030: Initiatives like Saudi Telecom Company’s center3 focus on a 1 GW aim, promising anchor tenancy and often incorporating power-purchase concessions, reducing risk premiums and truncating development timelines. Early oversupply lowers entry barriers for international hyperscalers.
Climate-Driven Cooling OPEX Escalation: Desert temperatures drive annual PUE up, necessitating investments in chillers or liquid-cooling for GPU clusters amidst regulatory water scarcity. This escalates operational costs as new entrants apply pricing pressure.
Segment Analysis
Large facilities dominated with 39.62% market share, yet future reductions are expected as new campuses arise. Massive campuses bolstered by sovereign AI projects and hyperscalers have seen 16.69% CAGR growth, poised to double the market size post-2026. Companies like DataVolt are leading with net-zero AI infrastructure, while medium and smaller formats continue to play roles for localized services and latency-critical applications.
Tier 3 facilities comprised 67.05% market share in 2025, ideal for reliability in multi-tenant applications. Tier 4, however, is growing rapidly at 16.55% CAGR to support AI, digital finance, and security workloads, with predictions of market share tripling by the decade’s end. Regional operators pursue Tier 4 to highlight long-term reliability, though CAPEX differences remain challenging in cost-sensitive regions.
This report segments the market by Data Center Size (Large, Massive, Medium, Mega, Small), Tier Standard (Tier 1 and 2, Tier 3, Tier 4), Data Center Type (Hyperscale/Self-Built, Enterprise/Edge, and Colocation), End User Industry (various sectors), and Geography, with forecasts in IT Load Capacity (MW).
Companies Covered in This Report
- Khazna Data Centers LLC
- Digital Realty Trust Inc.
- Teraco Data Environments Proprietary Limited
- Adgar Investments and Development Ltd.
- MedOne Data Centers Ltd.
- Africa Data Centres Ltd.
- Electronia Company Limited
- Gulf Data Hub LLC
- Amazon Web Services Inc.
- Paratus Group Holdings Ltd.
- Etihad Etisalat Company
- Center3 Company
- Emirates Integrated Telecommunications Company PJSC
- Data Hub Integrated Solutions Moro L.L.C (Moro Hub)
- Equinix Inc.
For more information about this report visit https://www.researchandmarkets.com/r/dvlcgi
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