Kuwait's data center market projected to reach $95 million by 2030
Kuwait's data center market is experiencing a significant growth spurt, driven by the expansion of big data, the Internet of Things, 5G, and improved international connectivity. This growth aligns with the country's goals of diversifying the economy and strengthening its position in the digital sector.
According to a study by Bernstein, the data center sector in Kuwait is expected to have a total furnished space of 225,000 square feet by 2030. This growth is supported by sovereign investments and global technology companies such as the Kuwait Investment Authority, Microsoft, and BlackRock, who are investing $30 billion in AI infrastructure and data centers.
The rising demand for digital services necessitates advanced data centers capable of accommodating large-scale digital needs in Kuwait. By 2030, the market is projected to have approximately 4,850 shelving units and an information technology operating capacity of 41 megawatts.
However, high cooling costs pose a significant challenge for Kuwait's data center market. To address this issue, the Kuwaiti government has allocated approximately $72 million to build new power plants for Google Cloud projects.
The expansion of digital services is also driving competition between local and international operators in Kuwait's data center market. Occupancy in the market is forecast to reach 90 percent by 2030, reflecting strong demand.
The growth in Kuwait's data center market is expected to contribute to the country's goal of becoming a regional digital hub. A study predicts that Kuwait's colocation data center market will grow from $16 million in 2024 to nearly $95 million by 2030, with an annual growth rate of over 34 percent.
Moreover, the Kuwaiti government's investment in power plants is aimed at supporting upcoming Google Cloud projects. The collaboration between the Kuwait Investment Authority and Microsoft and BlackRock is focused on investing in artificial intelligence infrastructure and data centers.
In conclusion, Kuwait's data center market is on an upward trajectory, driven by the expansion of digital services and the country's commitment to becoming a regional digital hub. Despite challenges such as high cooling costs, the market shows promise for growth and development in the coming years.
