According to Arizton research, the Middle East data center colocation market size by investment was valued at USD 2.61 billion in 2024 and is expected to reach USD 7.70 billion by 2030, growing at a CAGR of 19.77% during the forecast period.
Explore the Full Market Insights: https://www.arizton.com/market-reports/middle-east-data-center-colocation-market
Report Summary:
MARKET SIZE BY INVESTMENT 2030: USD 7.70 Billion
MARKET SIZE BY INVESTMENT 2024: USD 2.61 Billion
CAGR – INVESTMENT (2024-2030): 19.77%
MARKET SIZE – COLOCATION REVENUE (2030): USD 5.24 Billion
MARKET SIZE AREA (2030): 2.84 million sq. feet
POWER CAPACITY (2030): 681.5 MW (2030)
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
MARKET SEGMENTS: Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography
GEOGRAPHICAL ANALYSIS: UAE, Saudi Arabia, Israel, Oman, Qatar, Kuwait, Turkey, Bahrain
AI Boom Redefines the Middle East: Oracle’s $14B Bet Fuels Data Center Growth
Across the Middle East, enterprises in healthcare, finance, transport, and the public sector are rapidly adopting Artificial Intelligence (AI) to enhance productivity and decision-making. This digital shift is driving hyperscale companies to expand their AI infrastructure footprint across the region. In May 2025, Oracle announced a $14 billion investment over the next decade to scale its cloud and AI service offerings in Saudi Arabia, signaling strong confidence in the region’s digital future. As AI adoption surges, the demand for advanced, AI-ready data centers capable of processing and storing massive data volumes is rising sharply, positioning the Middle East as a critical hub for next-generation infrastructure investments.
The Middle East’s Data Centers Turn Sustainability into Strategy
With climate-neutral goals gaining momentum, data center operators across the Middle East are intensifying their focus on sustainability. Operators are integrating renewable energy sources, efficient cooling systems, and water-saving technologies to reduce environmental impact and optimize performance. In March 2025, Pure Data Centres equipped its Abu Dhabi facility with HVO-powered generators to cut emissions, while Khazna Data Centers transitioned all its UAE facilities to biofuel-powered generators by July 2024, replacing diesel systems entirely. These initiatives highlight the region’s commitment to green digital infrastructure and responsible growth.
Strategy Meets Technology: Smart Cities Anchor the Middle East’s Digital Ambition
The rise of smart cities is redefining the Middle East’s urban and digital landscape. Countries like the UAE and Saudi Arabia are leading this transformation through large-scale projects that integrate IoT, AI, and big data to enhance public services and sustainability. Cities such as Abu Dhabi and Dubai have emerged as global smart city leaders, ranking fourth and fifth respectively in the IMD Smart City Index 2025. This surge in smart city developments, coupled with the region’s expanding digital economy, is accelerating demand for robust digital infrastructure and data center capacity to support a hyper-connected, data-driven future.
Middle East Data Center Colocation Market Highlights
- AI Driving Data Center Boom: Adoption of Artificial Intelligence and national AI strategies across the UAE, Saudi Arabia, Qatar, and Kuwait are accelerating data center investments across the region.
- $33.79 Billion Investment Outlook (2025–2030): The Middle East colocation market will attract nearly $33.79 billion, with Saudi Arabia leading at $13.17 billion, accounting for about 39% of total regional investments.
- Strong Growth Trajectory: Between 2024 and 2030, the market is projected to grow by ~195%, supported by large-scale hyperscale and colocation developments.
- Evolving Competitive Landscape: Established players such as Khazna, Equinix, Gulf Data Hub, and center3 are expanding, while new entrants like DataVolt, Techtonic, and ezditek are reshaping competition across emerging hubs like Israel, Turkey, and Oman.
Looking for More Information? Click: https://www.arizton.com/market-reports/middle-east-data-center-colocation-market
Key Data Center Colocation Operators
- Agility Logistics Parks
- Batelco by Beyon
- DAMAC Digital
- EdgeConneX
- Equinix
- Gulf Data Hub
- Khazna Data Centers
- MedOne
- Mobily
- Quantum Switch
- center3
- SDS Data Center
- Turkcell
- Ooredoo Group
- Compass Datacenters
- TONOMUS
- MEEZA
- Bynet Data Communications
- Pure Data Centres Group
- Global Technical Realty
- Turk Telekom
New Entrants
- Alfanar Projects
- Anan
- DataVolt
- Desert Dragon Data Centers
- ezditek
- Geva Real Estate + Kardan Real Estate
- Keystone Infra
- Mega Data Centers
- NED
- Sahayeb Data Centers
- Techtonic
- ZEUUS
Market Segmentaion & Forecast
By Colocation Type
- Retail Colocation
- Wholesale Colocation
By Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
By Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
By Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
By Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Other Cooling Units
By Cooling Techniques
- Air-based Cooling
- Liquid-based Cooling
By General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
By Tier Standard
- Tier I & II
- Tier III
- Tier IV
By Geography
Middle East
- UAE
- Saudi Arabia
- Israel
- Oman
- Qatar
- Kuwait
- Turkey
- Bahrain
Related Reports That May Align with Your Business Needs
South Africa Data Center Colocation Market – Supply & Demand Analysis 2025-2030
https://www.arizton.com/market-reports/south-africa-data-center-colocation-market
Middle East and Africa Data Center Market Landscape 2025-2030
https://www.arizton.com/market-reports/middle-east-africa-data-center-market
What Key Findings Will Our Research Analysis Reveal?
- How big is the Middle East data center colocation market?
- What is the estimated market size in terms of area in the Middle East data center colocation market by 2030?
- What are the key trends in the Middle East data center colocation market?
- What is the growth rate of the Middle East data center colocation market?
- How many MW of power capacity is expected to reach the Middle East data center colocation market by 2030?
Why Arizton?
100% Customer Satisfaction
24×7 availability – we are always there when you need us
200+ Fortune 500 Companies trust Arizton’s report
80% of our reports are exclusive and first in the industry
100% more data and analysis
1500+ reports published till date
Post-Purchase Benefit
- 1hr of free analyst discussion
- 10% off on customization
About Us:
Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
Media Contact
Company Name: Arizton Advisory & Intelligence
Contact Person: Jessica
Email: Send Email
Phone: +1 3122332770
Country: United States
Website: https://www.arizton.com/market-reports/middle-east-data-center-colocation-market