Table of Contents

Frequently Asked Questions

How large is the UAE data center market?

The UAE data center market is valued at USD 2.38 billion in 2025, per Arizton, and is forecast to reach USD 6.70 billion by 2031 at 18.82 percent CAGR, driven by cloud expansion and Dubai and Abu Dhabi as primary hyperscale hubs.

Who leads the UAE hyperscale market?

Khazna Data Centers leads with 45.8 percent revenue share of the UAE hyperscale data center market and the broadest project pipeline, planning 20 new facilities including a 30 MW site opening mid-2026, per Mordor Intelligence.

How much investment is flowing into UAE data centers?

KKR committed USD 5 billion to Gulf Data Hub in 2025, per Mordor Intelligence, alongside Microsoft's USD 15.2 billion UAE commitment through 2029 and AWS with e& committing USD 1 billion in cloud infrastructure since January 2025.

Do I need third-party approval to open a cloud or datacenter operator?

No third-party approval is required for activity 6311.97 at the trade license stage. You still need to comply with UAE Personal Data Protection Law, TDRA regulations, DEWA/ADDC electrical compliance and any sector-specific engagement requirements for sovereign cloud tenants.

What does activity 6311.97 cover?

Activity 6311.97 covers cloud service and datacenter provider operations including hyperscale cloud region operations, IaaS, PaaS and SaaS services, wholesale and retail colocation, sovereign cloud provisioning and AI compute infrastructure operations.

How to Start a Cloud Service and Datacenters Providers Business in Dubai with Meydan Free Zone

The UAE has quietly become the Middle East's compute gateway. Microsoft, AWS, Oracle and Google all operate UAE cloud regions. Khazna Data Centers runs 12 operational facilities and plans 20 more. Equinix runs Dubai IBX interconnection. Core42, Moro Hub, Gulf Data Hub and e& operate diversified colocation and cloud portfolios. G42 broke ground on a 1 GW AI compute campus near Abu Dhabi International Airport. Cloud service and datacenter providers sit at the physical layer behind every UAE hyperscaler, sovereign cloud and AI ambition.

Arizton1 values the UAE Data Center market at USD 2.38 billion in 2025, forecast to reach USD 6.70 billion by 2031 at 18.82% CAGR, with Dubai and Abu Dhabi as primary hyperscale and colocation hubs, driven by cloud expansion, digital transformation and geographic advantage as connectivity gateway linking Asia, Africa and Europe. IMARC Group2 reports the UAE holds 35.2% regional revenue share in the GCC data center market in 2025, driven by Khazna's 300-plus MW pipeline, Equinix's Dubai IBX facilities and Microsoft and AWS cloud regions operating from Abu Dhabi and Dubai clusters. Mordor Intelligence3 reports Khazna Data Centers leads the UAE hyperscale data center market with 45.8% revenue share and the broadest project pipeline, planning 20 new facilities including a 30 MW site opening in mid-2026, alongside KKR committing USD 5 billion to Gulf Data Hub in 2025 and hyperscale colocation logging 15% CAGR through 2030. Eninrac Horizon4 reports the UAE anchors the GCC data center market at USD 2.50 billion and 850 MW, with a mature, diversified operator base including Khazna, Equinix, G42, AWS, Microsoft and Oracle, and 4,000 MW of additional GCC capacity under development between 2024 and 2028 with UAE and Saudi Arabia accounting for over two-thirds of regional capacity.

From hyperscale cloud region operators serving UAE and Middle East customers to colocation datacenter operators supporting cloud, telecom and enterprise tenants, sovereign cloud providers hosting government and regulated workloads and specialised AI compute operators supporting GPU-heavy training and inference workloads, a trade license lets you tap into that demand. Meydan Free Zone issues yours in under 60 minutes via Fawri, through a fully online process.

A UAE Data Center Market on a USD 6.70 Billion Trajectory by 2031 at 18.82 Percent CAGR

A Dubai-licensed cloud and datacenter provider enters a UAE data center market valued at USD 2.38 billion in 2025 and projected to reach USD 6.70 billion by 2031 at 18.82 percent CAGR, alongside a 35.2 percent UAE share of GCC data center revenues in 2025.

Sources: Arizton (2025), IMARC Group (2025), Mordor Intelligence (2026), Eninrac Horizon (2025)

Who is this activity for?

  • HYPERSCALE CLOUD REGION OPERATORS: You run a hyperscale cloud region operator or cloud service provider delivering IaaS, PaaS and SaaS services to UAE and Middle East customers. You operate Availability Zones, edge locations and interconnection fabrics supporting enterprise migrations, SaaS platforms, AI training workloads and sovereign cloud tenants across Abu Dhabi and Dubai clusters.
  • COLOCATION DATACENTER OPERATORS: You run a wholesale or retail colocation datacenter operator supporting hyperscaler pre-lease capacity, telecom and cloud service tenant workloads, and large enterprise migrations. You handle multi-megawatt power provisioning, redundant cooling, cross-connect ecosystems and cloud on-ramp connectivity to AWS, Azure, Google and Oracle in-country regions.
  • SOVEREIGN CLOUD & AI COMPUTE OPERATORS: You run a sovereign cloud provider hosting government, regulated and national-critical workloads under UAE data residency mandates, or a specialised AI compute operator supporting GPU-heavy training and inference workloads across NVIDIA Blackwell, H100 clusters, liquid-cooled campuses and hyperscale AI infrastructure for UAE and regional customers.

6311.97 — Cloud Service & Datacenters Providers

Under this activity, you can run a cloud service and datacenter provider business owning and operating infrastructure for hosting, cloud services and data processing. Service range covers hyperscale cloud region operations, IaaS, PaaS and SaaS provider services, wholesale and retail colocation, sovereign cloud provisioning, AI compute infrastructure operations, cross-connect and interconnection services, and dedicated infrastructure operations for enterprise, government and telecom clients.

Hyperscale Cloud Regions Colocation Datacenter Operations Sovereign Cloud & AI Compute
Hyperscale IaaS, PaaS and SaaS cloud region operations serving UAE and Middle East enterprise migrations. Wholesale and retail colocation supporting hyperscaler pre-lease, telecom, cloud and enterprise tenants. Sovereign cloud hosting national-critical workloads and AI compute operations for GPU training and inference.
UAE cloud region operations, Middle East hyperscaler expansion, enterprise cloud migration hosting. Khazna, Equinix, Gulf Data Hub, Moro Hub, Core42 model colocation, cross-connect ecosystem services. UAE government sovereign cloud, national-critical hosting, GPU AI compute cluster operations.
UAE CONTEXT UAE CONTEXT UAE CONTEXT
UAE Data Center at USD 2.38B in 2025 growing to USD 6.70B by 2031 at 18.82% CAGR, per Arizton. UAE holds 35.2% of GCC data center revenue share, per IMARC Group. Khazna at 45.8% UAE hyperscale share, KKR USD 5B to Gulf Data Hub, hyperscale at 15% CAGR to 2030.

This activity covers cloud service and datacenter provider operations under provision of infrastructure for hosting, data processing services and related activities. Related activities within class 6311 including specialised hosting activities, complete processing of data supplied by clients, generation of specialised reports from data supplied by clients and provision of data entry services fall under separate sub-codes within the same class 6311.

In short: if you are running a hyperscale cloud region, colocation datacenter operator, sovereign cloud provider or AI compute infrastructure operator, this is your activity.

Third-party approval

No third-party approval is required.

Anti-money laundering compliance

This business activity is exempt from AML compliance requirements.

Footnotes

¹ Arizton, "UAE Data Center Market Size, Investments, Growth, Trends", 2025.

² IMARC Group, "GCC Data Center Market Size, Growth & Forecast 2034", 2025.

³ Mordor Intelligence, "United Arab Emirates Hyperscale Data Center Market Size, Share & 2030 Growth Trends Report", 2026.

⁴ Eninrac Horizon, "GCC Data Center Boom: Annual Investment in Capacity Expansion Set to Hit USD 65 Billion by 2030", November 2025.

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