UAE Green Data Center Market Overview

Market Size in 2025: USD 624.86 Million

Market Size in 2034: USD 2,996.40 Million

Market Growth Rate 2026-2034: 19.03%

According to IMARC Group's latest research publication, "UAE Green Data Center Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The UAE green data center market size was valued at USD 624.86 Million in 2025 and is projected to reach USD 2,996.40 Million by 2034, growing at a compound annual growth rate of 19.03% from 2026-2034.

How AI is Reshaping the Future of UAE Green Data Center Market

• AI-Optimized Energy Efficiency: AI algorithms at Khazna Data Centers in Dubai dynamically manage cooling systems, reducing energy consumption by 25% in the UAE’s $1 billion green data center market under Vision 2031.
• Predictive Maintenance Analytics: Machine learning forecasts server failures in Abu Dhabi’s facilities, cutting downtime by 20% and ensuring operational continuity for cloud service providers.
• Sustainable Resource Allocation: AI models renewable energy integration for Sharjah’s data centers, boosting solar power usage by 30% and aligning with UAE’s net-zero goals.
• Automated Workload Optimization: AI balances computational loads across UAE servers, improving efficiency by 15% and supporting high-demand AI workloads for regional businesses.
• Carbon Footprint Monitoring: AI tracks emissions in real-time at Fujairah data hubs, reducing environmental impact by 18% and ensuring compliance with UAE’s Green Agenda.

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UAE Green Data Center Market Trends & Drivers:

Digital transformation comprises 40% of the UAE green data center market. Investments into energy efficient data centers driven by AI-based management systems are projected to exceed $1 billion. The UAE's Vision 2031 plan is led by Dubai and Abu Dhabi, seeking to ensure data centers use green energy, improving operational efficiency by 25% for 70% of data center operators, making it easier to scale, and reducing operating costs by 20%. With 98% digital adoption, it seeks to position the UAE as a global hub for green data centers, especially in light of increasing cloud computing demand in the region.

30% of market growth is driven by sustainability. The UAE Green Agenda identifies renewable energy and low carbon infrastructure as priorities. Other companies, like Khazna, power their servers with solar energy; 60% of their clientele are looking for ESG-compliant data centers. This changeover will accompany an investment of $500 million in green technology and energy-saving data centers, bringing the $1 billion green data center sector in line with international standards.

Urbanization and the digital economy account for 35% of demand drivers. 15 million tourists and $2.8 trillion of GCC wealth add to it. Smart cities of the UAE, including Dubai (Expo 2030 in Dubai), and 7% per annum growth in data centers are driving green data storage demand in the region. As a consequence of a unified approach to data center regulation, cloud infrastructure and artificial intelligence infrastructure account for 65% of data center investment in the UAE.

UAE Green Data Center Industry Segmentation:

The report has segmented the market into the following categories:

Component Insights:

• Solutions
  • Power Systems
  • Servers
  • Monitoring and Management Systems
  • Networking Systems
  • Cooling Systems
  • Others
• Services
  • System Integration Services
  • Maintenance and Support Services
  • Training and Consulting Services

Data Center Type Insights:

• Colocation Data Centers
• Managed Service Data Centers
• Cloud Service Data Centers
• Enterprise Data Centers

Industry Vertical Insights:

• Healthcare
• BFSI
• Government
• Telecom and IT
• Others

Regional Insights: 

• Dubai 
• Abu Dhabi 
• Sharjah 
• Others 

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in UAE Green Data Center Market

• September 2025: Khazna Data Centers opens a solar-powered facility in Dubai, using AI to optimize cooling and cutting energy costs by 20% for cloud service providers.
• July 2025: Abu Dhabi’s Technology Innovation Institute partners with Microsoft to deploy AI-driven green data centers, boosting renewable energy use by 15% for regional AI workloads.
• May 2025: UAE’s Ministry of Energy invests $100 million in a Sharjah data center hub, integrating AI for carbon tracking and supporting net-zero goals by 2030.
• August 2025: Moro Hub in Dubai launches an AI-enhanced green data center, reducing emissions by 25% and attracting 10 multinational clients for sustainable cloud services.

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