15
Number of cloud service providers
Iraq's cloud provider count in 2026
750 million
Cloud market revenue (USD)
Total revenue from cloud services in Iraq
40%
Repatriated cloud workloads (%)
Percentage of workloads moved back on-premises
120
Data center capacity (MW)
Total data center power capacity in Iraq
8%
Digital economy contribution (%)
Iraq's digital sector contribution to GDP
By 2026, Iraq has seen a notable increase in cloud service providers, with 15 firms operating locally, reflecting growing digital infrastructure. The total cloud market revenue has reached approximately $750 million, driven by government and enterprise adoption. Interestingly, 40% of previously cloud-hosted workloads have been repatriated to local on-premises data centers, indicating a trend towards data sovereignty and security concerns.
The expansion of data center capacity to 120 MW demonstrates Iraq's commitment to building a resilient digital backbone. The digital economy now accounts for 8% of GDP, highlighting the sector's importance. The shift towards cloud repatriation signifies a strategic move to balance cloud benefits with national data control, fostering local innovation and economic growth.
Frequently Asked Questions
What is driving the cloud repatriation trend in Iraq?
Concerns over data sovereignty, security, and government policies are primary drivers behind Iraq's move to repatriate cloud workloads.
How is the growth of local data centers impacting Iraq's economy?
Increased data center capacity boosts local employment, attracts investments, and enhances digital sovereignty, contributing positively to economic development.
Disclaimer: All statistics presented are 2026 estimates and projections based on industry trend analysis, historical data, and publicly available research. Individual data points may vary from actual figures.