Abu Dhabi and Dubai are the only two cities in in the Middle East, which are poised for considerable growth in data centers, according to a latest report released by global property consultants Cushman & Wakefield.
In fact, in its report entitled “Global Data Center Market Benchmark 2025, Cushman & Wakefield said that Abu Dhabi has been ranked first globally among emerging data center markets by 2025, Dubai was ranked second, confirming the UAE’s growing influence in global digital infrastructure investments.
Abu Dhabi’s ranking as first and Dubai’s second among 97 markets worldwide was based on their superiority across 20 critical criteria, including energy availability, fiber optic connectivity, development plans, land cost, infrastructure availability, supportive policies, and strong investor demand.
The report estimated the value of the UAE data center market at approximately $1.26 billion in 2024, and is expected to reach $3.33 billion by 2030. It indicated that this expected growth is supported by large-scale capital programs and global investment platforms.
The report also noted that Abu Dhabi Developmental Holding Company (ADQ) and Energy Capital Partners are investing $25 billion in power generation infrastructure, while MGX, Microsoft, and BlackRock are supporting a $30 billion initiative related to artificial intelligence.
Besides, the AI Infrastructure Partnership, launched in September 2024, between MGX, BlackRock, Global Infrastructure Partners, and Microsoft, with the aim of deploying $30 billion in venture capital from investors, asset owners, and companies.
Edward Macura, regional president for Cushman & Wakefield Core, said that there is a clear correlation between long-term infrastructure planning and current market performance. The UAE has created the right conditions for expansion, and global operators are responding, he said.
The report indicated that with more than 250 MW of operational capacity available and another 500 MW in active development, the UAE is poised for the next phase of expansion with the launch of the Stargate UAE project in Abu Dhabi, supported by OpenAI, Oracle, and NVIDIA.
Once completed, Stargate UAE is expected to provide 5 GW of capacity, while the UAE’s telecom company ‘du’ and Microsoft are developing a $540 million mega-facility in Dubai.
The report said that while emerging markets are gaining traction, established markets still reign supreme.
US Dominates
Among the developed markets, all the top 10 places have been occupied by the US with Virginia mega-market was ranked first globally and is followed by Phoenix climbing second position. Oregon, Ohio and Chicago also advanced in the rankings compared with last year.
Conversely, Tokyo, London, Mumbai and Sydney have dropped out of the global top 10 established data center markets, making way for new entrants such as Beijing and Shanghai. Much of the ranking movement in established markets this year revolved around power availability, land availability, land prices, and power costs.
Established markets with less available, or more expensive, while land and power saw their aggregate scores decline, the report said.
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