Data centre licence, from rented racks to halls
Reselling rack space is a light licence. Building your own hall, or hosting for government, brings approvals of its own.
- Usual route
- Mainland or free zone
- Extra approval
- DEWA power
- Timeline
- Weeks
- AML
- Not a DNFBP activity
A data centre licence in Dubai comes from the Department of Economy and Tourism (DET) or a free zone, with colocation and hosting as separate activities. Reselling space in an existing facility is a light file. A hall of your own needs building, fire and power approvals, and cloud services for Dubai government bodies need DESC certification.
- Covers
- Renting rack space, power and cooling for client-owned servers
- Not covered
- Selling internet connectivity, which stays with TDRA-licensed carriers
- Premises
- Your own hall, or contracted space in an existing facility
- Timeline
- Weeks to resell capacity; months or longer to build a hall
What a data centre company licence covers
Colocation rents clients space, power, cooling and physical security for servers they own and run themselves.
Covered
Not covered
- Covered by TDRA-licensed telecom operators
- Covered by Data processing and hosting
- Covered by Cyber security company
- Covered by IT equipment trading
Tick what you plan to do. The result shows here.
We fix the wording before you apply. Send us your list on WhatsApp
Most operators want hosting alongside colocation, so we put both activities on the licence before filing, which saves an amendment later.
Mainland or free zone for data centres
The licence follows the business model. For a hall of your own, the plot and the authority over it matter more than the licence.
| If most of your clients are | Likely route | Why |
|---|---|---|
| Reselling racks in an existing facility | Either route | A light licence that can sit wherever your clients and team are |
| Building a hall on your own plot | Either route | The authority over the plot approves the building, so land comes first |
| Hosting and cloud for mainland clients | Mainland (DET) | Hosting income from mainland clients rarely qualifies for the free zone 0% rate |
| Overseas tenants needing a Gulf point of presence | Free zone | Clients outside the mainland suit a free zone licence well |
A free zone company can serve mainland clients through a DET branch licence or permit (Executive Council Resolution 11 of 2025). Hosting income from mainland clients usually falls outside the QFZP 0% rate.
Several free zones license this activity; we match the zone to your visas, office and banking. Compare free zones
Three questions. The closest row is marked in the table above.
Your likely route shows here.
Building, power and hosting approvals
Reselling capacity needs the licence and good contracts with the host facility. A hall of your own adds a building permit from the authority over the plot, Civil Defence fire approval and a DEWA power connection sized to the load.
Before the licence
- Trade name and initial approvalDET or the free zone
The licence
- Trade licenceDET or the free zone
Alongside the licence
- Building permit for the hallThe authority over the plot
- Fire safety approvalDubai Civil Defence
- Power connection and capacityDubai Electricity and Water Authority (DEWA)
After the licence
- Cloud certification for governmentDubai Electronic Security Center (DESC)
- Corporate bank accountThe bank
We line up the power and the licence against your first tenant.
What does your data centre model add?
Tick each model you plan in the first two years. The heaviest one shows what comes on top of the licence.
Power capacity is usually the long pole for a new hall, so we raise the DEWA connection before the lease or plot is signed.
Tick every model the business will run
| What you plan | Points to |
|---|---|
| The licence with colocation and hosting activities, plus tight contracts with the host facility | |
| The licence with colocation and hosting activities, plus tight contracts with the host facility | |
| DESC cloud service provider certification before Dubai government bodies can use it | |
| Links bought from TDRA-licensed carriers, since only they sell connectivity | |
| A building permit, Civil Defence fire approval and a DEWA power connection | |
| A building permit, Civil Defence fire approval and a DEWA power connection |
Tick a line to see where your plan points.
What banks ask a data centre operator
Bank viewStandard, with close reading of equipment imports and lease costs
Banks see a data centre as a standard business with heavy start-up spending. Large payments abroad for servers, cooling and power equipment come early, because the kit is bought before any tenant has paid. A signed facility lease or capacity contract, and the first tenant agreements, show where income will come from. We put the equipment orders, the lease and the tenant contracts into the bank file together.
AMLNot a DNFBP activity; the bank's own customer checks still apply.
Where data centre files stall
A lease signed before the power is confirmed
A hall is only as useful as the power it can draw. Signing for a building before DEWA has confirmed the connection and capacity leaves rent running on space that cannot take load.
Hosting left off a colocation licence
Colocation covers space, power and cooling for servers clients own. Running applications or cloud services for them is a separate activity, and contracts signed before it is added sit outside the licence.
Promising connectivity the licence cannot sell
Internet links are a telecom service sold by TDRA-licensed operators. A tenant contract that bundles bandwidth as your own product needs rewording around the carriers in your building.
Questions about a data centre licence
A question about your plan? Describe your data centre plan and an advisor replies on WhatsApp.
Ask on WhatsAppWhat are the requirements for a data centre licence in Dubai?
How much does a data centre licence cost in Dubai?
Can a data centre company set up in a free zone?
Do I need a separate licence for cloud hosting in Dubai?
Related pages
IndustrySoftware and IT company setup in DubaiA software company license in Dubai: the activity classification, free zone or mainland, QFZP exposure on mainland clients, visas and banking.- ActivityAI company licence in DubaiThe licence is quick once the activity matches what you build.
BankingCorporate bank accounts in DubaiCorporate bank account opening in Dubai, prepared before you apply: the file a UAE bank reads, the right bank for your profile and a strong first file.
Reselling racks or building your own hall? The answer shapes the power request
Fifteen minutes with a senior advisor on your model, your tenants and the facility you have in mind. You leave with the activity list, the route and the approvals in order.
On the call
- The activity wording that fits your plan
- The route, and the approvals in order
- A written quote before any work starts
