The UAE is emerging as one of the fastest-growing data centre markets in the world, anchoring regional digital infrastructure growth as the needed capital investment across Europe, the Middle East, and Africa (EMEA).
According to global property consultancy, Knight Frank’s latest EMEA Data Centres Report, $560 billion in development capital is required to fund the development pipeline, including the $162 billion announced in the first half of 2025 alone.
Driven by rapid adoption of artificial intelligence, sovereign cloud strategies, and surging demand from global tech firms, the UAE has become a leading destination for hyperscale and AI-focused data centres. The country’s live data capacity has now surpassed 376MW, with an additional 19.2MW added in 2025 alone.
Among the landmark developments, OpenAI has chosen Abu Dhabi as a site for its global Stargate platform, while Microsoft and du have announced a $544 million hyperscale facility in Dubai. These projects are solidifying the nation’s position as the region’s digital backbone, linking data flows between Europe, Asia, and Africa.
Government initiatives remain a key driver. Abu Dhabi’s $13 billion Digital Strategy 2025–2027 is spearheading large-scale adoption of AI and sovereign cloud across more than 200 government services. Meanwhile, the UAE’s data centre vacancy rate has dropped to just 2.4 percent, one of the lowest in EMEA, reflecting strong demand and limited availability.
“The story of 2025 so far is one of scale colliding with scarcity. We are seeing record levels of supply delivered and planned across EMEA, yet demand from AI and cloud is growing even faster. Markets like Paris, London and Frankfurt are expanding at pace, but vacancy rates and pre-leasing levels reveal just how little truly available capacity remains,” said Stephen Beard, Global Head of Data Centres at Knight Frank.
Across EMEA, Knight Frank’s report shows the total operational data centre stock is now valued at more than $300 billion, with a further 11.4 percent growth projected in 2025.
In Europe, markets like London, Frankfurt, and Paris continue to expand rapidly but face similar supply constraints, with pre-leasing levels exceeding 85 percent in major hubs.
Alex Burgoyne, Head of Data Centres Valuation and Advisory at Knight Frank, said: “AI continues to be a defining force, shaping the EMEA data centre landscape. What was once a secondary driver is now moving centre stage, reshaping investment strategies and pushing governments, hyperscalers and operators to act faster. This shift is creating both opportunity and challenge as the region races to keep up.”
