Study Of Data Center Water Consumption In United Arab Emirates

Study Of Data Center Water Consumption In United Arab Emirates Market Analysis

The Study Of Data Center Water Consumption In United Arab Emirates Market size is estimated at 23.52 billion liters in 2025, and is expected to reach 61.01 billion liters by 2030, at a CAGR of 21% during the forecast period (2025-2030).

• IT Load Capacity: The IT load capacity of the United Arab Emirates' colocation data center market is around 392.67 MW in 2024.
• Geographical Significance: The United Arab Emirates experiences an arid climate characterized by hot, humid summers from April to September and warm, dry winters from October to March. Most rainfall occurs during the winter months. Proximity to the Arabian Gulf and the Gulf of Oman influences the climate, while severe dust storms are common across much of the country. Our research forecasts that in 2024, water consumption in the UAE is expected to surpass 19 billion liters.
• Raised Floor Space: The United Arab Emirates' colocation data center raised floor space is about 1.41 million sq. ft in 2024.
• Projected Installed Racks: In 2024, the United Arab Emirates is set to install over 56,000 racks in its colocation data centers.

Study Of Data Center Water Consumption In United Arab Emirates Market Trends

Surge in Mobile Users and 5G Network Advancements Rises Demand for Colocation Facilities

• The UAE stands out as a global frontrunner in swiftly adopting and deploying 5G technology. With steadfast backing from the government and key telecom players like Etisalat and du, the UAE has achieved near-complete 5G coverage, surpassing many nations worldwide.
• Data traffic per smartphone is projected to surge from 4.83 GB in 2023 to 11.2 GB by 2029, marking a robust CAGR of 15%. This significant increase in data traffic is expected to drive the demand for colocation data centers, as businesses seek scalable and efficient solutions to manage their growing data needs.
• The UAE's approach to 5G extends beyond traditional mobile services. Its telecom infrastructure is strategically designed to cater to the rising demands of various industries. By emphasizing private 5G network rollouts, network slicing, and other advanced technologies, the UAE is steering towards a holistic digital transformation, further boosting the need for colocation data centers to support these advancements.
• In a pivotal collaboration, Ericsson has teamed up with du, a leading telecom and digital services provider, to enhance du’s 5G network across the UAE.
• As of July 2024, du records an average 5G download speed of about 260.2 Mbps, with Etisalat trailing closely at approximately 261 Mbps.

Surging Data Consumption Fuels Demand for Mega Data Centers in the UAE

• In 2023, the United Arab Emirates had 6.68 million smartphone users, with projections estimating the figure will rise to 11.62 million by 2029.
• The UAE's telecom industry is expanding, driven by applications in end-user industries and advancements in IoT, cloud computing, data centers, and 5G technology. As internet consumption surges in the UAE, companies are rolling out innovative internet plans to cater to this growing demand and capture a larger customer base.
• eMarketer reports that 91% of the UAE's population now uses smartphones, marking a nearly 20 percentage point increase in just one year. This rapid adoption is fueled by consumers' desire for constant global connectivity, leading many to upgrade from old flip phones to modern smartphones. Additionally, a wave of younger consumers, now able to afford smartphones due to the availability of budget-friendly options, is further propelling this trend.
• As a result, the UAE is poised for a surge in data generation and consumption, driving the demand for mega data centers capable of efficiently handling, processing, and storing this data.

Study Of Data Center Water Consumption In United Arab Emirates Industry Overview

In the United Arab Emirates' highly consolidated water consumption data center market, five major players dominate the landscape. At the forefront are Equinix Inc, Gulf Data Hub, Khazna Data Centers, Etisalat, and Web Werks.

Equinix is making significant strides toward achieving water positivity. Their initiatives encompass using fuel cells to conserve billions of gallons of water, harnessing deep lake water cooling, and utilizing Aquifer Thermal Energy Storage (ATES) alongside free air cooling to curtail power consumption. Furthermore, Equinix is dedicated to exploring cutting-edge technologies and sustainable practices to bolster their water conservation and energy efficiency objectives. Through these advanced solutions, Equinix aspires to set a gold standard in the industry for environmental stewardship and resource management.

Study Of Data Center Water Consumption In United Arab Emirates Market Leaders

Study Of Data Center Water Consumption In United Arab Emirates Market News

• August 2024: In August 2024, Hewlett Packard Enterprise, in collaboration with Khazna Data Centers, unveiled a managed data center hosting service in the UAE. This service aligns with the UAE's national artificial intelligence (AI) strategy, which includes various AI projects with regional institutions. The facility is designed for end-to-end high-performance computing (HPC) technologies, specifically for AI, and includes compute, accelerated compute, software, networking, and direct liquid-cooling (DLC) technologies. By investing in a DLC data center, which is more energy-efficient than traditional air-cooling, the UAE aims to address its rising power demands. The International Energy Agency projects these demands to increase tenfold by 2026 due to the AI boom. This facility manages power consumption efficiently, using a liquid-based coolant solution that offers 20.7% higher performance per kW compared to air-cooled systems.
• July 2024: Khazna Data Centers' AUH6 facility prioritizes water conservation. The operator employs evaporative cooling technology, which minimizes water usage. This adiabatic cooling method not only facilitates winter cooling but also employs a water sprinkler for air cooling, a technique reminiscent of certain Arabic architectural practices. Additionally, while the facility incorporates liquid cooling in the racks, it does not utilize the direct-to-chip cooling typically associated with training architectures.