GCC Data Center Market - Industry Outlook & Forecast 2026-2031

GCC DATA CENTER MARKET KEY TRENDS

Sustainability Initiatives and Renewable Energy

• Sustainability efforts across GCC data center markets are increasingly centered on renewable energy integration, enhanced energy efficiency, and better resource optimization to meet growing digital demand and challenging climatic conditions. Governments and operators are investing in solar-powered infrastructure, advanced cooling solutions such as liquid and district cooling, and adopting standards like LEED and Estidama to lower carbon emissions and reduce water usage, supporting the region’s transition toward greener data center infrastructure.
• In November 2024, the Sharjah Communication Technology Authority (SCTA) signed a Memorandum of Understanding (MoU) to join the joint venture between BEEAH and Khazna Data Centers in developing data centers in Sharjah, UAE. The three parties are currently exploring the use of waste-to-energy as a power source, implementing greywater recycling systems, and integrating technologies aimed at minimizing energy consumption (as part of their commitment to sustainability).
• In November 2024, Microsoft, ADNOC, and Masdar signed a strategic collaboration agreement to explore powering Microsoft’s data centers with renewable energy through Masdar’s portfolio. This is a public renewable-power arrangement linked to UAE data center growth.

Increased Adoption of AI, Automation and Digitalization

• The growing adoption of AI, automation, and digitalization across GCC economies is substantially increasing demand for data centers, as enterprises and governments require high-performance computing (HPC), real-time data processing, and scalable cloud infrastructure to support smart city developments, digital platforms, and advanced analytics applications.
• Saudi Arabia’s National Strategy for Data and Artificial Intelligence (NSDAI), which is led by the Saudi Data & AI Authority, aims to establish Saudi Arabia as one of the global leaders in Artificial Intelligence (AI) development by 2030 through various initiatives including encouraging massive investments for AI development in the country, developing advanced AI infrastructure including Project NEOM, developing talent with AI skills, as well as integrating AI across key sectors such as healthcare, education, government, and finance.
• In June 2025, the Kuwait Investment Authority (KIA) announced its decision to join Microsoft and BlackRock to invest around $30 billion in building AI data center infrastructure in Kuwait.

GCC DATA CENTER MARKET SEGMENTATION INSIGHTS

• Vendors continuously innovate with UPS solutions to augment efficiency and reduce costs. The Muscat data center by Cloud Acropolis has four 200 kW online conversion UPS systems. The Gateway Gulf facility in Riyadh offers fault-tolerant 2(N+1) UPS systems as a backup.
• Additionally, several innovative UPS batteries such as Nickel-Zinc (NiZn) and Sodium-Ion batteries, are gaining traction in the market due to their high power density, safety, sustainability, and other factors.
• Liquid cooling is becoming a significant trend that major colocation operators are implementing in their data center facilities. It is emerging as a key differentiator for colocation providers as AI and compute-intensive workloads continue to grow. The HPE managed hosting service for AI in the UAE would run on a Khazna Data Centers facility with direct liquid cooling. The AUH01 facility of Pure Data Centres Group in Abu Dhabi utilises hybrid air and liquid cooling systems.

GCC DATA CENTER MARKET GEOGRAPHICAL ANALYSIS

• In the GCC data center market, Saudi Arabia is expected to be the largest market in 2031 in terms of power capacity, with a share of around 41.37% in 2031.
• By early March 2026, a major wave of attacks affected data center infrastructure in the UAE and Bahrain, disrupting cloud services and exposing vulnerabilities in critical power and connectivity systems. The incident highlighted that civilian digital infrastructure is increasingly vulnerable during geopolitical conflicts, shifting risk perception across the GCC market. As a result, operators are expected to strengthen resilience, redundancy, and security measures, while some planned and under-construction facilities may face delays and require additional capital investment due to heightened risk and infrastructure protection costs.
• The UAE continues to reinforce its position as a leading and strategically significant data center market in the Middle East, with Dubai and Abu Dhabi serving as key hubs for hyperscale and colocation expansion. Growth is being supported by rising cloud adoption, ongoing digital transformation across government and enterprises, and the country’s strategic location as a major connectivity gateway between Asia, Africa, and Europe.
• As of September 2025, Bahrain hosts around five submarine internet cables: 2Africa, FALCON, Fiber Optic Gulf (FOG), Gulf Bridge International Cable System/Middle East North Africa Cable System (GBICS/MENA), and Tata TGN-Gulf. These cables connect Bahrain to other countries around the globe. In addition, the country is witnessing growth in connectivity with submarine cables. The two submarine cables being developed are slated to be operational during the forecast period.

GCC DATA CENTER MARKET VENDOR LANDSCAPE

• The GCC data center market has the presence of key investors such as Alibaba Group, AWS, Batelco, center3, Cloud Acropolis, Core42, DAMAC Digital, Equinix, Google, Gulf Data Hub, Khazna Data Centers, MEEZA, Microsoft, Mobily, Oman Data Park, Ooredoo, Pure Data Centres, Quantum Switch, Sahayeb Data Centers, Syntys, Tonomus and others.
• The GCC data center market continues to attract large-scale investments from major operators. For example, in October 2025, AirTrunk, an APAC data center firm, entered into a strategic partnership with HUMAIN, a Saudi Arabian company, to build multiple data centers across Saudi Arabia; the two companies collaboratively aim to invest around $3 billion to develop advanced data centers and enhance Artificial Intelligence (AI) infrastructure across the country.
• The market is witnessing strong participation from new entrants with large-scale investments. For instance, in February 2025, DataVolt announced plans to develop a new AI-ready data center facility in Riyadh, while also planning a major 1.5 GW IT power capacity data center project in Neom, Saudi Arabia.

Key Data Center IT Infrastructure Providers

• Arista Networks
• Atos
• Broadcom
• Cisco
• Dell Technologies
• Fujitsu
• Hewlett Packard Enterprise
• Huawei Technologies
• IBM
• Inspur
• Lenovo
• NetApp
• NVIDIA
• Oracle
• Supermicro

Key Data Center Support Infrastructure Providers

• ABB
• Aggreko
• Airedale
• Alfa Laval
• Baudouin
• Canovate Group
• Caterpillar
• Chatsworth Products
• CHINT
• Cummins
• Delta Electronics
• Eaton
• Enrogen
• Envicool
• GE Vernova
• GRUNDFOS
• Hilti
• Hitachi Energy
• Honeywell
• Johnson Controls
• Legrand
• Mitsubishi Electric
• Rehlko
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• Socomec
• STULZ
• The Chemours Company
• Toshiba Corporation
• Vertiv

Key Data Center Contractors & Subcontractors Providers

• ABL TECHNICAL SERVICES
• Absal Paul Contracting
• AECOM
• AESG
• Al Latifia Trading & Contracting Co.
• Al-Balagh Trading and Contracting Co. WLL
• ALDAR
• ALEC Data Center Solutions
• Alfanar Projects
• Arcadis
• Arup
• Ashi & Bushnag Co. (ABC)
• ASU
• AtkinsRéalis
• Aurecon
• Axelerated Solutions
• Azura Consultancy
• BG&E
• Black & White Engineering
• CADD Emirates
• Capitoline Data Centre Consultants
• Condor Group
• Core Emirates
• Critical Group
• Dar
• DC Deployed
• DC PRO Engineering
• Direct Service LLC
• Edarat Group
• EGEC
• Elite Prime Electromechanical Services
• Estithmar Holding
• Galfar Al Misnad Engineering and Contracting WLL
• Group AMANA
• HATCO for Trading and Contracting W.L.L
• HHM Group
• Hill Engineering
• Hyundai Engineering & Construction
• ICEM
• ICS Arabia
• ICS Nett, Inc.
• Inteltec Emirates
• James L Williams
• John Paul Construction
• Juffali Airconditioning, Mechanical, and Electrical Company (JAMED)
• Laing O’Rourke
• Laith Electro Mechanical
• Linesight
• M+W Group
• Mace
• Manens KSA
• McLaren Construction Group
• Meinhardt Group
• MEMA Architecture
• Omrania
• Raghav Contracting
• RED Engineering Design
• Rider Levett Bucknall
• RW Armstrong
• SALFO & ASSOCIATES SA.
• SANA Control Systems
• SAUDI TAAB CONTRACTING COMPANY
• Site & Power DK
• STS Group
• Sudlows
• Syska Hennessy Group
• Telal Engineering & Contracting
• Turner & Townsend
• UBIK
• Uni Gulf Contracting and Trading

Key Data Center Investors

• Alibaba Group
• AWS
• Batelco
• center 3
• Cloud Acropolis
• Core42
• DAMAC Digital
• DATAMOUNT
• du
• Equinix
• Google
• Gulf Data Hub
• Khazna Data Centers
• Mannai Corporation
• MEEZA
• Microsoft
• Mobily
• Moro Hub
• NuetelBH
• Oman Data Park
• Ooredoo
• Pacific Controls
• Pure Data Centres
• Quantum Switch
• Sahayeb Data Centers
• Syntys
• Tencent Cloud
• TONOMUS
• XDS DATACENTERS
• Zain
• Zajil Telecom

New Entrants

• Agility Logistics Parks
• Blue Owl Capital and Qatar Investment Authority
• DataVolt
• Desert Dragon Data Centers
• ezditek
• HUMAIN
• Volt

The segmentation includes:

Segmentation by Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based
• Liquid-based

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

Segmentation by Geography

• GCC
• UAE
• Saudi Arabia
• Oman
• Qatar
• Kuwait
• Bahrain

KEY QUESTIONS ANSWERED