The U.A.E. data center server market, valued at USD 668.6 million in 2024, is projected to grow to USD 1,199.0 million by 2030, driven by a robust CAGR of 10.2% during this period. This remarkable growth is attributed to the rising number of data centers across the country. For instance, in February 2023, Data Hub Integrated Solutions Moro L.L.C, a subsidiary of Dubai Electricity and Water Authority (DEWA), launched a solar-powered data center in Dubai.

The increasing adoption of cloud-based services across industries is a key driver for the market. Cloud services offer cost efficiency, scalability, performance, reliability, and security, which are essential for domestic and international cloud service providers. Furthermore, the deployment of 5G technology in the U.A.E. is enhancing internet speeds and further increasing the demand for efficient data centers to deliver content, applications, and services. For example, in May 2024, the U.A.E. achieved a record internet speed of 30.5 Gbps on its live 5G network.

Despite this progress, the market faces challenges due to high initial capital investment requirements. The cost of building and operating data centers, including server power consumption, cooling systems, and heat management, remains significant.

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Market Insights

Rack servers dominated the U.A.E. data center server market in 2024, capturing 50% of the share due to their compact design, cooling efficiency, and ease of maintenance. Tower servers also held a notable share, offering customization and upgrade options with lower component density. Large-sized data centers accounted for 55% of the market, benefiting from their extensive infrastructure and capacity to manage vast amounts of data. Tier 3 data centers led the market in terms of tier type, providing high reliability with 99.982% uptime through redundant components and systems. Colocation data centers emerged as the preferred choice, offering robust power, cooling, and security solutions.

The IT and telecom sector was the largest end-user segment, driven by the growing presence of IT startups and advanced software applications in the U.A.E. Geographically, Dubai held a 60% share of the market in 2024, thanks to its advanced infrastructure and high number of data centers, while Abu Dhabi is expected to witness the fastest growth due to economic diversification initiatives like the Abu Dhabi Economic Vision 2030.

Key players dominating the market include Dell Inc., Hewlett Packard Enterprise, IBM Corporation, Lenovo Group, and Cisco Systems Inc., among others.

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