UAE’s datacentre increase powers AI ambitions and digital sovereignty
The UAE is present process a shift in its digital infrastructure panorama, with a wave of knowledge centre and cloud investments reshaping the nation right into a regional hub for synthetic intelligence (AI) and digital transformation.
This momentum isn’t solely redefining the UAE’s technological capabilities but additionally reinforcing its strategic imaginative and prescient of turning into a world nexus for digital innovation and information sovereignty.
In accordance with a latest report by Analysis and Markets, the UAE’s datacentre market was valued at roughly $1.26bn in 2024 and is projected to surpass $3.3bn by 2030. This progress is underpinned by a sturdy pipeline of operational and upcoming amenities, with mixed capacities reaching a number of hundred megawatts.
The funding surge is being pushed by a confluence of things – the UAE authorities’s digital transformation agenda; the speedy adoption of AI applied sciences throughout sectors; and a regulatory setting that encourages innovation and international funding. Sovereign wealth funds, regional builders, and international hyperscalers are all doubling down on the UAE’s digital future.
Executives from main UAE and worldwide companies informed the Emirates Information Company (WAM) that the nation’s cloud infrastructure is enabling true information sovereignty, permitting organisations to handle and function their information and AI options securely inside nationwide borders.
Fahad Al Hassawi, CEO of Du, highlighted the telecom operator’s dedication to bolstering nationwide digital infrastructure: “We proceed to speculate closely in datacentres and 5G networks to assist the digital economic system and reinforce information sovereignty,” he informed WAM.
Du’s capital investments in digital infrastructure reached AED 545m in 2025, up from AED 442m in 2024, with capital depth rising to 14%.
International tech giants guess massive on the UAE
The UAE’s enchantment as a cloud and AI hub isn’t misplaced on worldwide gamers. Eric Wan, vp of Alibaba Cloud Worldwide, praised the nation’s open financial and regulatory setting, calling it “perfect for attracting main investments.” Alibaba Cloud just lately launched its second datacentre in Dubai, a part of a broader technique to anchor its Center East operations within the UAE.
Ahmad Shakoura, group vp for rising markets at Cloudera, emphasised the foundational position of cloud infrastructure in enabling AI. He informed WAM that AI can’t thrive with out superior information infrastructure, highlighting that hybrid cloud environments are actually among the many UAE’s most strategic enablers for scalable, safe, and high-performance AI adoption.
Native champions are equally formidable. Khazna Knowledge Facilities, the UAE’s largest datacentre supplier, just lately introduced plans so as to add over 1GW of hyperscale capability by 2030. This consists of greater than 400MW of latest capability in worldwide markets reminiscent of Saudi Arabia and Italy, alongside main home expansions in Abu Dhabi, Dubai, and Ajman.
“The area’s progress in AI, and particularly within the UAE, comes from the management’s dedication to leapfrogging into the long run and constructing intelligence regionally to gasoline financial improvement,” mentioned Tinboat Arslanouk, chief enterprise officer – worldwide at Khazna in a latest interview with ComputerWeekly.
Because the Center East’s digital economic system accelerates, the UAE is rising not simply as a participant however as a frontrunner. “The Center East datacentre market is booming as a consequence of aggressive investments, advantageous laws, and strategic ambition,” Arslanouk added. “This area is rapidly turning into a vital element of the worldwide digital spine.”
Regional IT leaders have additionally welcomed the expansion of the Center East market. Umesh Moolchandani, CIO at engineering agency Bin Dasmal Group mentioned, “A hybrid, multi-cloud structure that mixes non-public, regionally managed datacentres with hyperscale capabilities is our prime precedence. For delicate, mission-critical workloads, this ensures optimum latency, enhanced information sovereignty, and predictable costs.”
With a mix of visionary management, cutting-edge infrastructure, and a welcoming enterprise local weather, the UAE isn’t solely future-proofing its economic system, it’s hoping to set the tempo for digital transformation throughout the area and past.
