UAE emerges as global contender in digital infrastructure

John E. Kaye
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Abu Dhabi and Dubai ranked top two emerging data centre markets worldwide as investor appetite sharpens
Cushman & Wakefield’s 2025 Global Data Center Market Comparison has named Abu Dhabi and Dubai as the world’s top two emerging data centre markets, reflecting the UAE’s accelerating position as a strategic global hub for digital infrastructure investment.
The study, which assessed 97 international markets across 20 variables, including power availability, fibre connectivity, development pipeline and land pricing, ranked Abu Dhabi first and Dubai second. The findings highlight the impact of coordinated infrastructure delivery, government policy support, and growing occupier demand in both emirates.
Edward Macura, Country Head at Cushman & Wakefield Core, said: “There’s a clear link between long-term infrastructure planning and current market performance. Abu Dhabi and Dubai have created the conditions for scale, and global operators are responding. Access to power, land, and fast-track approvals are converging with demand from AI and cloud platforms – this combination is driving investment decisions.”
The UAE currently has more than 250 MW of live data centre capacity, with a further 500 MW in active development. Major new builds include the Stargate UAE campus in Abu Dhabi, anchored by OpenAI, Oracle and Nvidia, which is targeting 5 GW at full capacity. In Dubai, du and Microsoft are progressing a $540 million hyperscale facility.
Hyperscale and cloud platform expansions are also ongoing across both emirates from AWS, Alibaba and Equinix. Khazna Data Centers leads the local operator market, accounting for over 59% market share. Enterprise deployments are also increasing, including the Emirates Group’s move to a solar-powered data facility located at the Mohammed bin Rashid Solar Park.
The UAE’s data centre sector was valued at USD 1.26 billion in 2024 and is projected to reach USD 3.33 billion by 2030, driven by increased data consumption linked to the growth of commercial real estate in the region.
The expansion is supported by large-scale capital programmes and international investment. Abu Dhabi’s ADQ and Energy Capital Partners are jointly investing $25 billion in national power infrastructure, while MGX, Microsoft and BlackRock are backing a $30 billion AI-focused initiative.
“We’re seeing investment decisions being made on the strength of delivery performance, not just potential,” Macura added. “Developers are meeting deadlines, occupiers are pre-leasing, and supporting infrastructure is being delivered in parallel. That consistency is being noticed by institutional capital.”
The Stargate UAE campus, announced in May 2025, is expected to deliver its first 1 GW of capacity by 2026—an accelerated schedule by global standards. Separately, Khazna’s 100 MW AI-focused facility in Ajman is progressing towards phased delivery within 24 months.
Main image: Aleksandar Pasaric
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