Dubai based cable seal maker Roxtec achieves record data center sales growth as AI boom transforms the Middle East tech sector  

The Middle East’s rapid development as a global data center powerhouse, supercharged by AI and cloud computing demand, is driving unprecedented growth in the region for safety seal manufacturer Roxtec.

Dubai headquartered Roxtec Middle East FZE is expanding from working on six data center projects in 2023 to more than 20 in 2025, including programmes for major global players and AI ‘hyperscalers’.

Swedish-owned Roxtec today announced it is gearing up for more demand for its products over the next 18 months, following the recent development deal to allow the UAE to buy large volumes of US-made AI chips, announced during President Trump’s recent visit to the region, and deals signed by major American companies to develop the AI sector.

In a major development, the UAE and US have signed an agreement for the Gulf country to build the largest artificial intelligence campus outside the US.

The 10-square-mile AI campus in Abu Dhabi will be powered by a five-gigawatt data center. It will be operated by American companies and supported by Emirati firms G42 and MGX.

The initiative includes collaborations with major tech companies such as Nvidia, OpenAI, Amazon Web Services, and Microsoft. These partnerships aim to position the Gulf region as a global leader in AI development.

That positioning is already underway. Roxtec, based in the Jebel Ali Freezone, has revealed it is currently in discussions with several companies looking to develop and build the next generation of HPC (High-Performance Computing) Data centres, designed to handle intensive AI and Big Data workloads.

Roxtec is the global leader in the manufacture of innovative cable and pipe transit systems. It provides specialized seals for cable and pipe penetrations that secure data centres against fire, water ingress and air leakage and protect against electromagnetic interferences that can create outages.

The sector now represents more than 25 per cent of its infrastructure business unit sales with a potential to reach 50 per cent in the next 18 months

Roxtec is currently active on projects in the Gulf states of UAE, Qatar and Oman, including new build centers and refit and refurbishment work.

The high energy efficiency needs of ever-larger centers which house the supercomputers that run AI systems and the climate change and environmental challenges being faced across the region are increasing the demand for resilience.

A shift towards modular construction is also helping Roxtec’s growth and scale-up plans as a valuable part of the supply chain.

To cater to the growing needs of the market Roxtec is launching two new products for the Middle East market, FlamePlus™ which offers sealing system addressing the shift toward modular and prefabricated builds, while the Roxtec Software Suite™  offers a digital lifecycle management platform for cable and pipe transits. In addition Roxtec has confirmed appointment of dedicated manager in Abu Dhabi for its data center operation.

Mohammed Abrar, Roxtec Business Unit Head of Infrastructure and Industry, said: “We’re seeing massive demand for our products, powered by the continued rise of AI, the increasing capacity that is required and the large-scale investments that are building a flourishing ecosystem.

“We’re forecasting that the growth we are seeing will accelerate even further on the back of the continued development of the sector across the Middle East, driven by massive US collaboration and the focus of governments in the region to unlock the opportunities AI presents.

“That focus on partnerships in AI and data centers means billions of dollars being poured into their construction, putting Gulf nations at the forefront of the new technology and AI development, which is great news for the supply chain.

“We are currently working with a number of tech giants, including global hyperscalers. The speed of development is continually increasing, with new centers going from the design stage to build completion in as little as 11 months.

“With increasing capacity in these centers and their high energy efficiency needs, there is great demand for airtight sealing to avoid cooling loss.

“HPC data centers require significant liquid cooling and as a result the management of a myriad of pipes. Operators are putting special focus on seals as they work to manage cooling and recycle excess heat.

“As a result, our expertise and range of products are proving invaluable. We have developed industry leading tools for managing cable and pipe transits.

“Climate change and environmental challenges including sandstorms, unprecedented rainfall, and flash floods are creating more demand for resilient sealing solutions and we are supporting a number of clients as they look to protect their infrastructure from these threats.

“Our expertise in the complete project life cycle, from design to supply and installation, coupled with training and inspection services is giving us an edge. As the world moves words increased reliance on data centers and AI, robust infrastructure is essential”

“A shift towards modular construction is also helping create demand for our services, with our specifically designed solutions that support faster instillations on these sites.”

Contact Roxtec Middle East FZE visit: https://www.roxtec.com/ae/

Note to editors:

Roxtec was founded in Sweden in 1990. It is now the global leader in the manufacture of innovative cable and pipe transit systems, supplying many of the world’s biggest firms.

It is active in more than 80 markets with a turnover of more than £220million employing over 1,000 staff across 30subsidiaries.utions to a variins.