JLL recently named the United Arab Emirates (UAE) as a frontrunner in advancing data center evolution in the Middle East. Currently, the country has 28 active colocation facilities. These facilities offer rack space rental to third-party entities that need to house servers and other network equipment.
JLL revealed the paper on the sidelines of Cityscape Global, one of the biggest real estate events in the world. The document, titled “Unveiling the Potential: The Future of Data Centers in the Middle East and Africa,” also identified Dubai and Abu Dhabi as the UAE’s data center markets.
Apart from being a magnet for data centers, these cities also rank among the top 20 smartest cities in the globe based on the Institute for Management Development’s Smart City Index.
Transforming into a digital economy
The UAE is making inroads into becoming a powerhouse digital economy. Major players such as Khazna and Equinix are contributing to this by intensifying their data center-related efforts. In particular, Khazna plans to amass a total capacity of 300 megawatts by adding 12 new facilities to its portfolio in two years.
Additionally, the UAE proudly boasts an impressive internet penetration rate exceeding 98 percent. This metric corresponds to the percentage of a territory’s population that uses the Internet.
Apart from all this, the UAE also establishes itself as a key regional hub for Artificial Intelligence (AI) innovation. With robust strategies such as Smart Dubai in place, it aims to leverage AI to boost various sectors, including healthcare, transportation, and government services.
“At a time when data has come to define the parameters of innovation, efficiency, and competitiveness, not only in real estate but across industries, the UAE is boldly leading the charge in the data center domain in the region. Through strategic investments in smart city infrastructure, a robust AI strategy, and a visionary approach to talent development, the country is not only becoming an investment hub; it is positioning itself for even greater success ahead,” stated Faraz Ahmed, an associate at JLL MENA.
Read: The laws behind Dubai’s digital transformation
Attracting hyperscalers
JLL’s whitepaper underscored the pivotal role of hyperscalers in helping the Middle East’s data center market thrive. Presently, the region is seeing substantial investments from top hyperscalers such as Amazon Web Services and Microsoft. However, JLL stated that the UAE has the largest concentration of such entities in the region.
Recently, the said tech giants have unveiled innovative cloud availability zones. These are slated for deployment through their data centers in the country. The goal is to enhance business competitiveness by delivering advanced architectural and end-to-end security solutions.
The region has become a thriving hub for data centers. Confirming JLL’s research, Mordor Intelligence predicts that the data center market size in the Middle East will grow at a compound annual growth rate of 14.74 percent until 2029. Currently, there are approximately 73 operational colocation facilities spread across the UAE, Saudi Arabia, Qatar, Oman, and Kuwait.
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