energy

Middle East data centre capacity may quadruple by 2030, with power as the main constraint

Reuters, citing JLL, expects Middle East data centre capacity to grow at a 32% annual rate to 2030 in its base case, with power access the main hurdle.

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what happened

Reuters, citing JLL's EMEA Mid-Year Data Centre Report 2026, says the region currently has 1.6 gigawatts of live IT capacity. Another 2.6 GW is under construction and 13.8 GW sits in the planned pipeline. JLL's base case sees capacity compounding at 32% a year through 2030.

The report stresses that planned projects differ from facilities under construction, and neither category guarantees that capacity will reach customers on time. According to JLL's Gaurav Mathur, some projects are being reprogrammed rather than cancelled because of regional conflict and supply-chain disruption. Securing enough electricity within the required timeframe is the key factor for new developments.

Most of the planned expansion is concentrated in Saudi Arabia and the UAE. In Deloitte's 2025 AI Infrastructure Survey, 72% of power and data centre executives called grid capacity a very or extremely challenging issue. S&P Global Ratings expects electricity consumption by UAE data centres to more than double by 2030.

why it matters

For markets, the story suggests that power grids, rather than demand, are becoming the binding limit on AI infrastructure build-out in the Gulf. Construction timelines will depend heavily on grid connections, which matters for utilities and grid equipment makers.

tags

instruments

data centre operatorsGulf utilities

sources

  1. Middle East data centre capacity could quadruple by 2030, but power is key — Reuters, 29 October 2026 at 04:19 UTC

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