The data center market in the United Arab Emirates (UAE) is projected to experience a CAGR (compound annual growth rate) of 9.95% from 2023 to 2029. It will ultimately reach a size of USD 2.65 billion. The UAE has successfully lured prominent multinational technology companies such as Amazon Web Services (AWS), Google, and Microsoft. Most new data center facilities will conform to Tier 3 certifications. It will include companies such as Equinix Inc., Khazna Data Center, and Moro Hub taking the lead. 

The market is influenced by various factors, including:

• Enhanced transportation infrastructure within a region
• Underwater cables used for telecommunications, known as submarine cables
• The utilization of cloud services is increasing rapidly.
• The intersection of big data and the Internet of Things (IoT)
• Business operators transitioning to cloud infrastructure
• The emergence of intelligent urban areas
• Implementation of 5G technology
• Sustainability 

The data center business in the Emirates is experiencing significant growth due to government support, investment, and the implementation of advanced technologies such as cloud computing. Now, let's examine the top upcoming data center projects in the United Arab Emirates.

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Top Data Center Projects in UAE

Here are some of the top data center projects in the UAE,

AUH 6 Data Center Facility

Khazna Data Centers has recently introduced a state-of-the-art data center in Abu Dhabi, UAE. The business unveiled the introduction of AUH6 at Masdar City. The facility has a capacity of 31.8 megawatts (MW). Masdar and French utility EDF (EPA: EDF) have been granted a contract to construct a 7-MWp ground-mounted solar photovoltaic (PV) plant for the purpose of supplying power to a new data center owned by UAE-based provider Khazna in Abu Dhabi. The AUH6 data center exemplifies Khazna's dedication to advancing the limits of technological innovation and sustainability in data center infrastructure. 

AUH 6 Data Center Facility Phase II

Khazna Data Centers is a prominent wholesale data center provider in the Middle East and North Africa. It commenced the development of its second data center in Masdar, Abu Dhabi in 2022. The project reached its completion in the third quarter of 2023. Khazna Abu Dhabi 6 (AUH 6) is a recently built facility with a power capacity of 31.8 megawatts (MW). It enhances the company's presence in the region and meets the demand for a technologically advanced digital infrastructure. It improves the ability of businesses to withstand and recover from digital disruptions, as well as their efforts to transition to digital technologies.

Read: Top data center projects in Europe

Dubai Data Center Project

Khazna Data Centers commenced construction on two data center facilities in Dubai, United Arab Emirates in 2022. The two facilities are also referred to as DXB2 and DXB3. They are situated in Dubai Design District and Ibn Battuta, respectively. The total capacity of the two facilities will be 43 megawatts (MW).

DXB2 commenced operations in the third quarter of 2023, while DXB3 started operations in the first quarter of 2024. The DXB3 facility will be an expansion of an already existing facility that will be transported to Khazna as a result of the strategic cooperation between G42 and e&. DXB2 and DXB3 are specifically engineered to meet sustainability requirements. Both facilities are equipped with energy-efficient power systems and adiabatic free-cooling chilled water systems. Additionally, both data centers will be built and certified to meet the LEED Gold standard for green buildings.

DX3 Data Centre Development

Equinix, Inc., a global leader in digital infrastructure, has declared the inauguration of its third International Business Exchange data center in Dubai. Upon completion, the new location, referred to as DX3, would have a total capacity of 1,800 cabinets across two stages. It will cover a total area of 2.966 acres (135,000 square feet). This will establish DX3 as Equinix's largest data center in the region. Equinix's investment of more than USD 60 million in the initial stage of constructing this new facility demonstrates its dedication to fostering and facilitating digital prospects in Dubai and the Middle East. The initial stage of the newly constructed facility, referred to as DX3 provides a capacity for accommodating 900 racks. It is situated on the same premises as DX1.

Conclusion 

The UAE is leading the data center industry, with an expected Compound Annual Growth Rate (CAGR) of 9.95% from 2023 to 2029. The increase in data center projects, fueled by reasons such as improved transportation infrastructure, consumption of cloud services, and the adoption of sophisticated technologies like 5G, highlights the country's dedication to technological innovation and sustainability. 

Data center projects such as Khazna Data Centers' AUH 6, DXB2, DXB3, and Equinix's DX3 demonstrate a strong commitment to meeting increasing demands and following environmentally friendly building standards. These projects feature cutting-edge facilities built to accommodate growth. Thanks to government backing and substantial investments, the UAE is well-positioned to maintain its path as a central location for digital infrastructure and innovation in the region.

Read: An In-Depth Guide to Data Center Construction Process

Frequently Asked Questions (FAQ's)

Here are some frequently asked questions about the topic,

What are data center projects?

A data center is a facility that offers collective access to applications and data through an intricate network, computing, and storage architecture. Industry standards are in place to aid in the design, construction, and upkeep of data center buildings and infrastructures, with the goal of ensuring the security and high availability of data.

How many data centers are in the UAE?

The United Arab Emirates has a total of 38 colocation data center facilities. Several reasons that contribute to the expansion of the data center market in the country include the implementation of 5G technology, the widespread use of smartphones, and the process of digitization.

Why is data in the UAE so expensive?

Due to its relatively small size, the per capita cost of installing a network in this country is considerably higher than in any other country. In nations like India, where the user is from, the population is significantly larger, resulting in economies of scale. This allows for a reduction in the cost of providing coverage to a larger number of people.

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• Projects in progress or under construction
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Each project will have all the essential details, such as scope, capacity, CapEx, status, project description, companies involved, funding information, location, periodic updates, important event dates like construction start date, commissioning dates, and key contact information of project owners and stakeholders.

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