Kuwait data center market set to soar to $95 million by 2030

• The Kuwait Investment Authority has joined forces with Microsoft and BlackRock to invest $30 billion in AI infrastructure and data centers. The government has allocated $72 million to build new power plants to support upcoming Google Cloud projects.

A study forecasts that Kuwait’s colocation data center market will grow from about $16 million in 2024 to nearly $95 million by 2030, with an annual growth rate of over 34 percent, reported Al Qabas newspaper.

Research firm AriZone noted that the Kuwait Investment Authority has joined forces with Microsoft and BlackRock to invest an estimated $30 billion in artificial intelligence infrastructure and data centers. In addition, the government has allocated around $72 million to build new power plants to support upcoming Google Cloud projects.

Expansion of digital services

Experts attribute this rapid growth to the expansion of big data, the Internet of Things, and 5G, in addition to Kuwait’s improved connectivity to international submarine cables. This rising demand requires advanced data centers capable of accommodating large-scale digital needs.

Striking numbers

By 2030, the sector’s capacity is expected to exceed 225,000 square feet of furnished space, with about 4,850 shelving units and an information technology operating capacity of 41 megawatts. Occupancy is also forecast to reach 90 percent, reflecting strong local and regional demand.

Challenges

Despite the optimistic outlook, securing sustainable energy and addressing high cooling costs remain key challenges for the market. Competition between local and international operators also adds pressure.

These indicators confirm that Kuwait is steadily moving towards becoming a regional digital hub, supported by sovereign investments and global technology companies, in line with the country’s goals of diversifying the economy and strengthening its position in the digital sector.