UAE Saudi Arabia data center capacity to rise by 2030
The move
UAE and Saudi Arabia are expected to add about 2 gigawatts (GW) to 3 GW of IT power capacity to the Middle East’s data center market by 2030, according to S&P Global Ratings’ latest report. The additions are expected to be driven by accelerating artificial intelligence investment, government support and relatively low energy costs.
Within the GCC, the UAE and Saudi Arabia are expected to account for more than 80 percent of the region’s data center capacity additions.
UAE and Saudi projects could lift capacity
The Middle East’s data center capacity could rise further if several large-scale projects are delivered as planned. These include the 5 GW UAE-U.S. AI Campus associated with Stargate UAE, with its initial 1 GW expected to be completed over the next three years. In Saudi Arabia, AI company HUMAIN is developing data center projects of up to 1.9 GW by 2030.
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Data localization and partnerships
Data localization requirements and sovereign cloud policies are expected to support demand for domestic data centers and local partners.
S&P expects joint ventures between U.S. or Chinese hyperscalers and local partners that retain operational control of data centers to be important in meeting digital sovereignty objectives. Telecom operators are also expected to align their strategies with national development agendas and play a significant role in implementing data center projects, often partnering with hyperscalers and sovereign wealth funds rather than developing facilities entirely on their own.
Energy costs
Average data center construction costs between 2026 and 2030 are expected to be about $13 million per megawatt (MW) in Saudi Arabia and $11 million/MW in the UAE, compared with $12 million/MW in Europe and $13 million/MW in North America.
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