Abu Dhabi, Dubai among top emerging data centre markets in 2025, reveals report

Abu Dhabi and Dubai have been ranked as the world’s top two emerging data center markets, according to Cushman & Wakefield’s 2025 Global Data Center Market Comparison report, reflecting the UAE’s growing role in global digital infrastructure investment.

Among 97 markets surveyed, Abu Dhabi and Dubai placed first and second respectively, assessed across 20 key variables including power availability, fiber connectivity, development pipeline, and land pricing.

“There’s a clear link between long-term infrastructure planning and current market performance,” said Edward Macura, country head at Cushman & Wakefield Core. “Abu Dhabi and Dubai have created the conditions for scale, and global operators are responding.”

UAE’s data centre capacity to rise

The UAE currently hosts over 250MW of live data centre capacity, with an additional 500MW in active development. The Stargate UAE project in Abu Dhabi — backed by OpenAI, Oracle, and Nvidia — is expected to deliver 5GW at full capacity. In Dubai, telecom operator du and Microsoft are advancing a $540m hyperscale facility.

Read: Stargate UAE: G42, OpenAI, Oracle, NVIDIA, SoftBank, Cisco to build AI cluster

Cloud service providers increasing operations in the UAE

Cloud service providers including AWS, Alibaba, and Equinix are expanding operations in both emirates. Khazna Data Centers leads the UAE market with more than 59 per cent share, while enterprise players like Emirates Group are also expanding into solar-powered facilities such as the one at Mohammed bin Rashid Solar Park.

The UAE data centre market was valued at $1.26bn in 2024 and is forecast to grow to $3.33bn by 2030. Backing this growth are major capital commitments: Abu Dhabi’s ADQ and Energy Capital Partners are investing $25 billion into power infrastructure, while MGX, Microsoft, and BlackRock are supporting a $30bn AI-driven initiative.

Macura noted that institutional capital is responding to the market’s track record. “Developers are meeting deadlines, occupiers are pre-leasing, and supporting infrastructure is being delivered in parallel,” he said.

The Stargate UAE campus is expected to deliver its first 1GW by 2026. Khazna’s 100MW AI facility in Ajman is also on track for phased delivery within 24 months.

As demand for AI and cloud infrastructure intensifies, the UAE is positioning itself as a resilient and scalable digital hub. “The level of interest we’re seeing isn’t temporary,” Macura added. “The UAE has reached the point where it offers both operational reliability and future capacity — those are the markets that will outperform over time.”