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    GCC Hyperscale Data Center Market

    ID: MRFR/ICT/59005-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    GCC Hyperscale Data Center Market Research Report By Type (Colocation Data Centers, Cloud Data Centers, Enterprise Data Centers, Managed Data Centers), By Service Type (Infrastructure as a Service, Platform as a Service, Software as a Service), By End User (IT Services, Telecommunications, Web Services, Financial Services, Healthcare) and By Cooling Technology (Air-based Cooling, Liquid Cooling, Evaporative Cooling) - Forecast to 2035

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    GCC Hyperscale Data Center Market Infographic

    GCC Hyperscale Data Center Market Summary

    The GCC Hyperscale Data Center market is projected to grow from 310.4 USD Million in 2024 to 655.0 USD Million by 2035.

    Key Market Trends & Highlights

    GCC Hyperscale Data Center Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate of 7.02 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 655.0 USD Million, indicating robust growth potential.
    • In 2024, the market is valued at 310.4 USD Million, reflecting the increasing demand for data center services in the region.
    • Growing adoption of cloud computing due to the rising need for scalable infrastructure is a major market driver.

    Market Size & Forecast

    2024 Market Size 310.4 (USD Million)
    2035 Market Size 655.0 (USD Million)
    CAGR (2025-2035) 7.02%

    Major Players

    Digital Realty, Mobily, Google Cloud, Ooredoo, Saudi Telecom Company, Etisalat, IBM Cloud, Alibaba Cloud, Microsoft Azure, Equinix, STC, Amazon Web Services

    GCC Hyperscale Data Center Market Trends

    GCC Hyperscale Data Center Market is expanding significantly due to a number of factors, such as rising cloud service demand and an increased dependence on digital infrastructure. Governments in the area, like those in Saudi Arabia and the United Arab Emirates, are making significant investments in digital transformation plans and smart city projects, which encourage the construction of hyperscale data centers. The extensive use of 5G technology improves connection even further, which fosters an atmosphere that is conducive to the growth of data centers.

    The necessity for effective data management solutions and the quick rise in data consumption are the main areas of opportunity in the GCC industry. 

    Since these technologies demand strong data processing capabilities, the emergence of artificial intelligence, machine learning, and the Internet of Things (IoT) offers data center operators more opportunities to investigate. Furthermore, the GCC's advantageous geographic location fits in nicely with the growing desire for data sovereignty, which is driving businesses to set up local data centers in order to meet legal requirements. Current patterns show that the GCC's hyperscale data center industry is moving toward energy-efficient and sustainable practices. 

    Market Segment Insights

    Hyperscale Data Center Market Type Insights

    The GCC Hyperscale Data Center Market demonstrates varying dynamics across its distinct types, which play pivotal roles in shaping the market landscape. Colocation Data Centers have increasingly emerged as a popular choice among enterprises, facilitating a shared environment that allows businesses to rent space and resources. This model stands out due to its flexibility and cost-effectiveness, which aligns with the growing trend towards operational agility in the region's rapidly digitizing economy. Cloud Data Centers reflect another crucial aspect of the market, as organizations are embracing cloud solutions for their scalability, accessibility, and integration capabilities.

    In the GCC, the demand for cloud services is surging, driven by the need for enhanced data management and service delivery. 

    Those businesses that harness the power of cloud technology are finding themselves with significant competitive advantages, particularly in sectors like finance, healthcare, and e-commerce, where data handling is integral to strategic operations. Meanwhile, Enterprise Data Centers cater specifically to large-scale organizations looking for dedicated facilities to meet their unique requirements. These centers offer organizations control over their infrastructure and security, often becoming essential for businesses that rely on tailored solutions. The trend towards data sovereignty in the GCC, due largely to regulatory requirements, places organizations with enterprise data centers at a strategic advantage in handling sensitive data locally.

    Lastly, Managed Data Centers are steadily gaining traction as they provide comprehensive management services that offload IT operations from enterprises. 

    This is particularly beneficial for smaller companies or those without extensive IT resources, allowing them to focus on core business functions while ensuring their data operations are managed by professionals. The integration of advanced technologies, such as artificial intelligence and automation, in managed services further enhances efficiency and operational performance.The overall importance of these types is underscored by the surging demand for data services in the GCC, where robust digital infrastructure is a vital component of national agendas aimed at driving economic transformation.

    Hyperscale Data Center Market Service Type Insights

    The GCC Hyperscale Data Center Market, focusing on Service Type, showcases a diverse landscape that includes Infrastructure as a Service, Platform as a Service, and Software as a Service. As organizations in the region increasingly shift towards cloud-based solutions, Infrastructure as a Service has gained prominence, offering scalable computing power and storage that aligns with the growing demands of digital transformation. Platform as a Service emerges as a key enabler for developers, simplifying application development and deployment, ultimately driving innovation in the GCC tech sector.

    Meanwhile, Software as a Service is significantly impacting the market by providing businesses with flexible, subscription-based access to software applications, enhancing operational efficiency. The GCC region's fostering of a technology-driven economy, supported by government initiatives for smart cities and digital infrastructure, contributes to the robust demand for these service types. Overall, the segmentation highlights a critical evolution in how companies leverage data in a cloud-centric world, underscoring the importance of each service type in driving the growth of the GCC Hyperscale Data Center Market.

    Hyperscale Data Center Market End User Insights

    The End User segment of the GCC Hyperscale Data Center Market plays a pivotal role in the overall growth and development of the industry, reflecting the increasing reliance on digital infrastructure across various sectors. IT Services are consistently expanding due to a surge in cloud computing demands and software as a service trends, which require robust data management and processing capabilities. Telecommunications companies have a significant stake in this market, benefiting from heightened data consumption and 5G rollout, which necessitate larger and more advanced data centers.

    Similarly, Web Services exhibit major engagement as businesses move towards e-commerce and online platforms, necessitating agile and scalable data solutions for optimal performance. Financial Services are increasingly adopting Hyperscale Data Centers to enhance transaction processing and improve security measures, fostering trust and efficiency in digital banking. Healthcare is also a crucial player, where data management is vital for patient information systems, telemedicine, and research, highlighting the importance of secure and efficient data storage and processing.Each of these sectors contributes distinctly to the GCC Hyperscale Data Center Market landscape, shaping the trends and opportunities that drive market growth.

    Hyperscale Data Center Market Cooling Technology Insights

    The Cooling Technology segment of the GCC Hyperscale Data Center Market is critical to optimizing operational efficiency in data centers, which are experiencing heightened demand due to the region's aggressive digital transformation initiatives. With the GCC governments investing heavily in smart city projects and digital infrastructure, a reliable cooling mechanism becomes vital to maintain optimal temperatures for high-density IT equipment. Air-based Cooling has been one of the most widely adopted solutions, leveraging traditional airflow methods to keep server temperatures within acceptable ranges, while Liquid Cooling is gaining traction due to its effectiveness in heat transfer, particularly in high-performance computing.

    Evaporative Cooling offers an energy-efficient alternative, contributing to lower operational costs and aligning with the GCC's sustainability goals. As the region focuses on enhancing energy efficiency and reducing carbon footprints, innovative cooling solutions are expected to play an increasingly significant role in the design and operation of hyperscale data centers, making them indispensable for the future resilience of the GCC digital landscape.

    Get more detailed insights about GCC Hyperscale Data Center Market

    Key Players and Competitive Insights

    The GCC Hyperscale Data Center Market is witnessing substantial growth driven by the increasing demand for cloud computing, big data analytics, and a surge in internet traffic. The region's strategic geographical advantage and emphasis on digital transformation initiatives further elevate its importance on the global data center stage. As industries like e-commerce, telecommunications, and enterprise services expand, the proliferation of hyperscale data centers provides the necessary infrastructure to support data-heavy applications and services.

    With several regional players and multinational corporations establishing significant operations in the GCC, competitive dynamics are evolving rapidly as companies strive to enhance their offerings and ensure optimal service delivery. 

    The focus on energy efficiency, sustainability, and advanced technologies is crucial for companies aiming to maintain a leading edge in the market.Digital Realty stands out in the GCC Hyperscale Data Center Market due to its robust operational footprint and commitment to providing scalable and flexible solutions to customers. The company has leveraged its technological capabilities and global experience to establish a strategic presence in the region. Digital Realty's extensive portfolio of data centers and high-performance interconnect solutions enables it to cater effectively to the diverse requirements of cloud service providers, enterprises, and content providers.

    Its emphasis on sustainable practices, coupled with cutting-edge infrastructure, aligns well with the growing needs for energy-efficient data solutions in the GCC. The company's strong reputation for reliability and security has also positioned it favorably in a competitive landscape increasingly concerned with data privacy and protection.

    Mobily, a prominent player in the GCC Hyperscale Data Center Market, has established itself as a critical infrastructure provider leveraging advanced telecommunications capabilities. The company offers a suite of services including colocation, cloud solutions, and managed services designed to meet the specific needs of businesses in the region. Mobily's hyperscale data centers are strategically located to optimize connectivity and provide enhanced service reliability. Its partnerships and collaborations with leading technology firms further strengthen its offerings, allowing for comprehensive solutions tailored to various sectors such as finance, healthcare, and e-commerce.

    The company is committed to sustainable operations and innovative solutions, making it a key player in the region's tech ecosystem. Additionally, ongoing investments in expanding its data center capabilities underscore Mobily's focus on meeting growing customer demands and reinforcing its market position.

    Key Companies in the GCC Hyperscale Data Center Market market include

    Industry Developments

    The GCC Hyperscale Data Center Market has seen significant activity recently, particularly with companies such as Digital Realty, Google Cloud, and Ooredoo expanding their operations in the region. As of May 2025, OpenAI is working with G42, Oracle, Nvidia, Cisco, and SoftBank, all based in the United Arab Emirates, to construct the "Stargate UAE" AI data center project close to Abu Dhabi. As part of a long-term strategy aiming for up to 5 GW of total capacity, the first phase, 200 MW, is anticipated to go online by the end of 2026.

    The goal of this facility is to become the biggest AI data center outside of the United States. The program comes after a recent change in U.S. policy that lifted export restrictions on AI chips to the United Arab Emirates in order to facilitate infrastructure security cooperation and compliance frameworks.

    Microsoft and du, a division of Emirates Integrated Telecommunications Company, inked an AED 2 billion (about USD 544 million) deal in April 2025 to construct and run a new hyperscale data center in the United Arab Emirates. With Microsoft positioned as its most significant tenant and capacity delivered in phases—expanding digital infrastructure throughout the Emirates—this is a significant milestone in the UAE's quest to become a global AI hub. The market valuation for the GCC data center sector is projected to grow significantly, spurred by increased demand for cloud computing and data services.

    Over the past two years, the establishment of new data centers by firms like Amazon Web Services and Mobily has further accelerated this growth trajectory, marking the GCC as a key player in the global data center market. The surge of investments indicates a strong market shift towards digital transformation in the region, enhancing connectivity and service delivery.

    Market Segmentation

    Hyperscale Data Center Market Type Outlook

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

    Hyperscale Data Center Market End User Outlook

    • IT Services
    • Telecommunications
    • Web Services
    • Financial Services
    • Healthcare

    Hyperscale Data Center Market Service Type Outlook

    • Infrastructure as a Service
    • Platform as a Service
    • Software as a Service

    Hyperscale Data Center Market Cooling Technology Outlook

    • Air-based Cooling
    • Liquid Cooling
    • Evaporative Cooling

    Report Scope

     

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 291.06(USD Million)
    MARKET SIZE 2024 310.41(USD Million)
    MARKET SIZE 2035 655.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 7.024% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED Digital Realty, Mobily, Google Cloud, Ooredoo, Saudi Telecom Company, NxtGen, Etisalat, GigaTech, IBM Cloud, Alibaba Cloud, Microsoft Azure, Equinix, STC, Interxion, Amazon Web Services
    SEGMENTS COVERED Type, Service Type, End User, Cooling Technology
    KEY MARKET OPPORTUNITIES Growing cloud adoption trends, Increased demand for AI applications, Expansion of 5G infrastructure, Rising focus on sustainability initiatives, Government support for digital transformation
    KEY MARKET DYNAMICS increased cloud adoption, demand for scalable infrastructure, energy efficiency regulations, geopolitical stability, investment in digital transformation
    COUNTRIES COVERED GCC

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    FAQs

    What is the market size of the GCC Hyperscale Data Center Market in 2024?

    The GCC Hyperscale Data Center Market is expected to be valued at 310.41 million USD in the year 2024.

    What is the projected market size for the GCC Hyperscale Data Center Market by 2035?

    By 2035, the GCC Hyperscale Data Center Market is anticipated to reach a value of 655.0 million USD.

    What is the expected CAGR for the GCC Hyperscale Data Center Market from 2025 to 2035?

    The market is projected to have a compound annual growth rate (CAGR) of 7.024% from 2025 to 2035.

    Which segment is expected to dominate the GCC Hyperscale Data Center Market?

    Colocation Data Centers are expected to dominate the market with a value of 95.0 million USD in 2024.

    What is the expected market value for Cloud Data Centers in 2035?

    Cloud Data Centers are projected to reach a market value of 178.75 million USD by 2035.

    Who are the major players in the GCC Hyperscale Data Center Market?

    Major players include Digital Realty, Google Cloud, Amazon Web Services, Microsoft Azure, and IBM Cloud.

    What is the growth rate for the Managed Data Centers segment from 2024 to 2035?

    Managed Data Centers are expected to grow from 60.41 million USD in 2024 to 147.75 million USD by 2035.

    What opportunities are driving growth in the GCC Hyperscale Data Center Market?

    Increased data demand and cloud adoption are key opportunities fueling growth in the market.

    What challenges might affect the growth of the GCC Hyperscale Data Center Market?

    Regulatory hurdles and rising operational costs may pose challenges for market growth.

    How does the GCC region compare to other areas in terms of Hyperscale Data Center growth?

    The GCC region is experiencing rapid growth due to increasing digital transformation and infrastructure investments.

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