Data centre boom drives digital infrastructure

Billions of dollars are pouring into Middle Eastern data centres as governments, hyperscalers and sovereign wealth funds race to build the backbone of the region's digital economy. For construction firms, the boom opens a lucrative pipeline of projects but also demands speed, sustainability and specialised expertise.

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THE Middle East's data centre market is entering a period of unprecedented growth, with billions of dollars in public and private investment driving the development of cutting-edge digital infrastructure. Fuelled by national digital transformation strategies, the rise of smart cities, and soaring demand for cloud and AI capacity, the sector is opening vast opportunities for the construction industry, which now sits at the heart of this technological revolution.

According to MEED Projects, nearly $7 billion worth of data centre projects are currently under construction, with an additional $13 billion in the pre-execution phase. PwC Middle East projects that total regional capacity will triple from 1 GW in 2025 to 3.3 GW within five years, underscoring the scale of the building boom.

Government policy is playing a decisive role. Saudi Arabia's Ministry of Communications has announced an $18 billion masterplan to establish a national network of state-of-the-art facilities, creating opportunities from hyperscale builds to edge deployments. PwC notes that the GCC's regulatory frameworks - such as Saudi Arabia's Cloud Computing Special Economic Zone (CCSEZ) - are helping attract global technology investment while streamlining construction approvals.

Meanwhile, the UAE is pushing digital infrastructure in tandem with its smart city ambitions. A showcase is Dubai's Moro Hub, a 100 MW facility within the Mohammed bin Rashid Solar Park that is the world's largest fully solar-powered data centre. It exemplifies how energy-efficient design, renewable integration, and AI-powered maintenance are becoming mandatory features of new builds.