Middle East Data Center Construction Market is Set to Double to $4.39 Billion by 2029

The report delves into the latest trends transforming the construction market, from innovative building techniques and sustainable materials to digitalization and the increasing focus on green construction.

The Middle East is steering towards sustainability, aiming for an environmentally sustainable future. Nations such as the UAE, Saudi Arabia, Israel, Kuwait, and Oman are transitioning towards renewable energy sources like solar, wind, and bioenergy to meet their power requirements. Efforts to reduce water use by adopting air-based cooling techniques are also gaining traction. Notably, the UAE’s Moro Hub has initiated the largest solar-powered data center in Dubai, and Equinix’s DX3 facility in Dubai is reportedly fully powered by renewable energy.

Artificial Intelligence (AI) is reshaping global industries, with the Middle East actively participating in this technological revolution. Various countries in the region have established AI committees and launched national AI strategies to foster development and enhance workforce skills. Data centers are central to AI advancements, offering high-performance computing (HPC), data storage, and specialized hardware hosting. The UAE and Saudi Arabia are at the forefront of utilizing AI for power grid management and optimization.

The UAE and Saudi Arabia are pioneers in developing smart cities within the Middle East. Dubai and Abu Dhabi are ranked among the top smart cities globally. The ambitious NEOM project in Saudi Arabia, with an estimated cost of USD 500 billion, is poised to be a global benchmark for smart cities upon its completion in 2025.

Key construction contractors in the Middle East data center construction market include AECOM, ENMAR Engineering, Anel Group, McLaren Construction Group, HHM Building Contracting, and Turner & Townsend. Datacenter investors feature prominent companies such as Gulf Data Hub, Equinix, and Khazna Data Centers, with newcomers like Digital Realty and Compass Datacenters poised to disrupt the market.

Prominent support infrastructure vendors operating in the region include ABB, Alfa Laval, Eaton, Johnson Controls, Schneider Electric, Siemens, and Vertiv. These vendors showcase a strong global footprint and compete with local vendors through direct operations and partnerships.