Dublin, July 13, 2026 (GLOBE NEWSWIRE) — The “GCC Data Center Market – Industry Outlook & Forecast 2026-2031” has been added to ResearchAndMarkets.com’s offering.
The GCC data center market is on a remarkable growth trajectory, with investments projected to grow at a CAGR of 18.85% from 2025 to 2031. Driving this expansion are key trends such as sustainability initiatives, integration of AI and automation, and increasing digitalization.
Sustainability Initiatives and Renewable Energy
- Sustainability is a significant trend, as governments and operators in the GCC focus on integrating renewable energy, optimizing resources, and enhancing energy efficiency. Investments in solar-powered infrastructure, advanced cooling solutions like liquid and district cooling, and adherence to LEED and Estidama standards are pivotal in reducing carbon emissions.
- A pivotal MOU between the Sharjah Communication Technology Authority, BEEAH, and Khazna Data Centers targets sustainable initiatives, such as waste-to-energy power sources and greywater recycling, to foster eco-friendly data center growth.
- A strategic partnership between Microsoft, ADNOC, and Masdar aims to power Microsoft’s data centers with renewable energy in pursuit of sustainable growth in the UAE’s data center sector.
Increased Adoption of AI, Automation and Digitalization
- The GCC is witnessing rapid AI and automation adoption, necessitating robust data centers. This demand supports smart city developments, digital platforms, and sophisticated analytics applications.
- Saudi Arabia’s National Strategy for Data and Artificial Intelligence (NSDAI) accelerates AI innovation, with projects like Project NEOM and investments in AI infrastructure, shaping Saudi Arabia as an AI leader by 2030.
- The Kuwait Investment Authority partners with Microsoft and BlackRock, pledging $30 billion towards AI data center infrastructure, signaling a significant push into digital transformation.
GCC Data Center Market Segmentation Insights and Geographical Analysis
- Vendors are innovating with UPS solutions to enhance efficiency and reduce costs. Technologies like Nickel-Zinc batteries are gaining traction due to superior power density and sustainability.
- Liquid cooling is becoming essential for AI workloads, with major operators like Khazna Data Centers in the UAE deploying this technology for superior efficiency.
- Saudi Arabia is expected to command the largest market share by 2031, with a focus on power capacity. The UAE also maintains its status as a premier data center location, driven by cloud adoption and digital transformation.
- Bahrain’s connectivity infrastructure is expanding, with several submarine internet cables enhancing international connectivity, while the region adapts post-attack vulnerabilities in 2026.
Market Landscape and Investments
- The GCC data center market continues to attract major investments. Noteworthy is AirTrunk’s partnership with HUMAIN, aiming to invest $3 billion to establish advanced data centers and boost AI infrastructure in Saudi Arabia.
- New entrants like DataVolt plan significant investments, developing an AI-ready data center facility in Riyadh and a substantial 1.5 GW IT power capacity project in Neom.
Leading infrastructure providers, contractors, investors, and new market entrants propel the GCC data center market. Notable players include Alibaba Group, AWS, Equinix, Microsoft, and Google, emphasizing the market’s competitiveness and attractiveness.
The GCC data center market’s growth aligns with strategic visions for digital progress, infrastructure enhancement, and sustainability, shaping it as a key player in the global data center arena.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 241 |
| Forecast Period | 2025-2031 |
| Estimated Market Value (USD) in 2025 | $5.46 Billion |
| Forecasted Market Value (USD) by 2031 | $15.39 Billion |
| Compound Annual Growth Rate | 18.8% |
| Regions Covered | Middle East |
Market Dynamics
- Market Opportunities & Trends
- Emergence of new, energy-efficient technologies driving sustainability in data centers.
- Increased adoption of cloud services and edge computing solutions.
- Market Growth Enablers
- Rising investments in the development of advanced infrastructure.
- Government regulations promoting the establishment of data centers.
- Market Restraints
- High initial capital expenditure involved in data center construction.
- Concerns around data privacy and stringent regulatory requirements.
For more information about this report visit https://www.researchandmarkets.com/r/949esk
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