Middle East emerges as global leader in cost-competitive data center construction

The Middle East has become the world’s least expensive region for data center construction, according to the 10th edition of the Data Centre Construction Cost Index by Turner & Townsend. With a regional average of $9.93 per Watt, the area is significantly more affordable than North America ($12.06), Europe ($12.76), and Asia ($12.10). Specific costs include Saudi Arabia at $10.80 per Watt, Qatar at $9.80 per Watt, and the UAE at $9.20 per Watt.

This cost advantage, driven by relatively low construction and energy expenses alongside strong government support for AI infrastructure, is positioning the region as a global computing hub. Key initiatives such as Saudi Arabia’s HUMAIN program and the UAE’s investments through entities like Khazna Data Centers and G42 are driving this transformation.

To support this growth, the inaugural Data Center World Middle East event will debut in Abu Dhabi this November. The conference will address the rapid expansion of regional capacity, which Omdia estimates added 1GW of new IT capacity in 2025, with capacity compounding at nearly 25% annually. Discussions will focus on AI infrastructure, cloud growth, and energy efficiency, including pilot programs aimed at reducing cooling-related energy consumption by up to 40%.