According to new research from Arizton Advisory and Intelligence, the Kuwait data center colocation market, valued at USD 16 million in 2024, is projected to grow to USD 95 million by 2030, at a CAGR of 34.57%. The growth underscores Kuwait’s ambition to become a digital hub in the region while aligning with its New Kuwait Vision 2035.
Market Outlook
- Colocation Revenue: USD 95 million by 2030
- Utilized White Floor Area: 225,000 sq. ft.
- Utilized Racks: 4,850 units
- IT Power Capacity: 41 MW
- Base Year: 2024 | Forecast: 2025–2030
Key Growth Drivers
- Submarine Connectivity: Kuwait currently has five operational submarine cables, with an additional system expected by 2027, improving regional and global connectivity.
- Supportive Policy Framework: The Communication and Information Technology Regulatory Authority (CITRA) enforces the Data Privacy Protection Regulation (DPPR), strengthening data security.
- National Vision 2035: Heavy government investment in digital infrastructure and innovation supports Kuwait’s push to be a regional technology hub.
- Renewables Integration: Kuwait is scaling renewable energy, notably through a 2024 landmark solar tender, ensuring sustainable energy for data center operations.
Technology Adoption
Kuwait is accelerating its digital transformation through AI, IoT, blockchain, robotics, autonomous vehicles, and drones, driving efficiencies in supply chains, governance, and financial services. Projects such as XZero City showcase sustainable urban living, integrating green energy and smart resource management.
Vendor Landscape
Existing Colocation Operators
- Ooredoo
- stc Kuwait
- Zain
- KEMS Zajil Telecom
New Entrants
- Agility
- Gulf Data Hub
- Khazna Data Centers
- ZEUUS
Strategic Implications
The report emphasizes that Kuwait’s maturing ICT ecosystem, coupled with its regional connectivity and regulatory framework, makes it an attractive destination for colocation investments. With growing enterprise digital needs and the rise of AI-driven applications, demand for colocation services is expected to surge.
