UAE Emerges as Regional Leader in Data Centre and Cloud Infrastructure Growth
Abu Dhabi, The Gulf Observer: The United Arab Emirates (UAE) is experiencing a significant surge in data centre and cloud infrastructure development, fueled by the government’s digital transformation initiatives and the rapid integration of artificial intelligence (AI) technologies. This growth is solidifying the country’s position as a leading regional hub for cloud infrastructure and a preferred global destination for digital investments.
According to a recent report by Research and Markets, the UAE’s data centre market was valued at approximately US$1.26 billion in 2024 and is projected to exceed US$3.3 billion by 2030. The country boasts an extensive portfolio of operational and upcoming facilities, with total capacities reaching several hundred megawatts.
The report noted that investments in this rapidly expanding sector come not only from global technology operators but also from sovereign wealth funds, local developers, and regional investors, underscoring the strategic importance of digital infrastructure as a key national asset supporting sustainable economic growth.
Executives from major UAE and international technology firms told the Emirates News Agency (WAM) that data centre investments have gained strong momentum across the nation. They emphasized that local cloud infrastructure enables true data sovereignty, allowing organizations to manage and operate AI and data systems securely within national borders.
Fahad Al Hassawi, Chief Executive Officer of du, stated that the company continues to make substantial investments in digital infrastructure and national data centres to reinforce the UAE’s digital economy. He revealed that du’s planned investments in telecommunications networks and digital infrastructure for 2025 reached AED 545 million, compared to AED 442 million during the same period in 2024. Capital intensity rose to 14 percent from 12.3 percent in the previous year, reflecting a heightened focus on data centres, 5G development, and sovereign cloud services.
Al Hassawi highlighted that these investments enhance the UAE’s standing as a regional hub for digital innovation, fostering AI adoption, foreign investment, and sustainable operations through energy-efficient technologies and reduced carbon emissions.
Eric Wan, Vice President of Alibaba Cloud International and General Manager for the Middle East, Turkey, and Middle Asia, said the UAE’s open economic and regulatory environment makes it an ideal destination for major cloud and AI investments. He emphasized that the UAE and the wider region are among the fastest-growing global markets in cloud services and AI, noting that Alibaba Cloud has made the UAE a key strategic hub, marked by the opening of its second data centre in Dubai.
Yassine El Bakiouli, Vice President of Application Sales for the Gulf Commercial region at Oracle, noted that Oracle continues to expand its private data centre network and cloud service portfolio in the UAE to empower both public and private sectors in achieving secure, efficient, and scalable digital transformation.
Meanwhile, Ahmad Shakoura, Group Vice President for Emerging Markets (META) at Cloudera, said the UAE’s ambition to lead the global digital economy is built upon a robust foundation of advanced cloud data centres, which have evolved from basic storage facilities into powerful engines for AI-driven innovation.
He explained that AI development relies on advanced data infrastructure that integrates data from diverse sources, including public and private clouds, on-premises systems, and edge computing environments. Shakoura emphasized that hybrid cloud infrastructures have become one of the UAE’s most strategic enablers for innovation, enabling secure data processing, predictive analytics, and technological advancement.
He added that the UAE’s digital infrastructure now serves as a key driver of national growth, enabling efficiency, innovation, and competitiveness on the global stage, while reinforcing the nation’s reputation as a center for digital transformation and technological excellence.
