Data centres have become foundational infrastructure across the GCC, underpinning national digital economies and enabling cloud computing, artificial intelligence (AI) workloads, smart cities, e-government platforms, fintech and cybersecurity resilience. Governments and enterprises are accelerating investment as data localisation requirements and power-intensive AI applications drive sustained demand for capacity.

Saudi Arabia and the UAE are leading the market expansion through hyperscale campuses, sovereign cloud initiatives and edge data centre deployments. At the same time, Qatar, Oman, Bahrain and Kuwait are strengthening regional connectivity and in-country hosting capabilities to support growing digital ecosystems.

Data centre development is closely aligned with national strategies such as Saudi Arabia’s Vision 2030, the UAE’s digital economy and AI roadmaps, and wider smart city programmes across the GCC. These agendas are translating into long-term demand for high-capacity, energy-efficient and resilient data centre infrastructure. 

Priorities include hyperscale and colocation facilities to support cloud service providers; edge data centres to reduce latency and enable 5G and IoT use cases; energy-efficient designs using advanced cooling, modular construction and renewables; and strategic partnerships between global hyperscalers, local developers and utilities.

The GCC has more than 174 active data centre projects, representing over $93bn in investment

Market scale

The GCC currently has more than 174 active data centre projects, representing over $93bn in investment, led by international players such as AWS, Google, and Huawei, alongside regional developers including Khazna and Moro, supported by government-led localisation strategies. More than a dozen large-scale facilities valued at over $100m each are currently under tender, with further packages expected to reach the market over the next 6 to 12 months.

While demand remains strong, delivery is constrained by power availability, grid capacity, land access, cooling efficiency, ESG compliance, and a limited pool of experienced contractors and suppliers. These dynamics create both execution risks and compelling entry opportunities for new and expanding market participants.