UAE and Saudi Arabia Poised for Major Data Centre Expansion
The United Arab Emirates and Saudi Arabia are set to dominate the Middle Eastern digital landscape, with projections indicating they will command over 80 per cent of the regionâs data centre capacity by 2030. According to a recent S&P report, both nations are expected to collectively add between 2 and 3 gigawatts (GW) of IT power. While this represents a small fraction of the global market, it marks a significant surge for the region, bolstered by massive undertakings like the 5-GW Stargate UAE campus and the Public Investment Fund-supported Humain projects in Saudi Arabia. While the UAE is currently moving faster with its infrastructure rollout, Saudi Arabia is expected to see its capacity grow substantially toward the latter half of the decade.
The growth is driven by competitive advantages, such as lower-than-average energy costs and a strategic focus on sustainable, non-hydrocarbon power sources, including nuclear energy. Furthermore, the push for digital sovereignty and strict data localization lawsâmandating that information be stored domesticallyâis creating a strong business case for these facilities. By forming strategic joint ventures with global hyperscalers, both nations are effectively aligning their infrastructure development with long-term national goals for AI integration, cybersecurity, and digital literacy, ensuring they remain at the forefront of the global data revolution.