UAE strengthens global leadership in cloud investments, data centre projects

The UAE is witnessing a major boom in data centre and cloud infrastructure projects, driven by the acceleration of government digital transformation and the widespread adoption of artificial intelligence technologies, reinforcing its position as a leading regional hub for cloud infrastructure and a preferred destination for global digital investments.

According to a report by Research and Markets, the UAE’s data centre market is growing rapidly, valued at about US$1.26 billion in 2024, with projections to exceed US$3.3 billion by 2030. The country also possesses a portfolio of operational and upcoming data centres with combined capacities reaching several hundred megawatts.

Investments in this vital sector are not limited to global operators but also include sovereign funds, local and regional developers, and investment firms, reflecting the strategic importance of digital infrastructure as a national asset supporting sustainable economic growth.

Executives from major UAE and international companies told the Emirates News Agency (WAM) that investments in data centres across the country have gained strong momentum, noting that local cloud infrastructure embodies true data sovereignty by enabling organisations to manage and operate their data and AI solutions securely within national borders.

Fahad Al Hassawi, Chief Executive Officer of du, said the company continues to invest heavily in digital infrastructure and national data centres to support the digital economy and strengthen data sovereignty within the UAE.

Discussing the company’s planned investments in telecommunications networks and digital infrastructure for 2025, Al Hassawi said they reached Dhs545 million this year, compared to Dhs442 million during the same period in 2024. Capital intensity rose to 14 percent from 12.3 percent in the second quarter of last year, reflecting the company’s focus on enhancing investments in data centres, 5G network development, and the national sovereign cloud services platform.

He noted that these investments reinforce the UAE’s position as a regional hub for the digital economy through true data sovereignty, accelerating AI adoption, attracting digital investments and services, and supporting key government and private sectors through managed cloud solutions, while promoting operational sustainability with energy-efficient technologies and reduced carbon emissions.

Eric Wan, Vice President of Alibaba Cloud International and General Manager of the Middle East, Turkey, and Middle Asia at Alibaba Cloud Intelligence, said the UAE market enjoys an open economic and regulatory environment that makes it ideal for attracting major investments in cloud infrastructure and AI.

He added that the UAE and the wider region are among the fastest-growing markets globally in both cloud services and AI, noting that the company views the UAE as a key hub in its global strategy, which led to the opening of a second data centre in Dubai as part of its large-scale digital infrastructure investments.

Yassine El Bakiouli, Vice President of Application Sales, Gulf Commercial at Oracle, said the company continues to expand its presence in the UAE through an advanced network of private data centres and cloud services, empowering public and private entities to achieve rapid and secure digital transformation.

Ahmad Shakoura, Group Vice President - Emerging Markets (META) at Cloudera, said the UAE’s ambitions to lead the digital economy are underpinned by an often unseen yet essential foundation — a network of advanced cloud data centres that have evolved from mere storage facilities into dynamic engines driving AI adoption within scalable, secure and high-performance environments.

He explained that AI cannot thrive without advanced data infrastructure, which provides comprehensive access to organisational data from multiple sources, including public and private clouds, on-premises systems and edge computing environments. He noted that hybrid cloud infrastructures have become one of the UAE’s most strategic enablers for developing these capabilities.

Shakoura added that cloud data centres are now a key driver of national growth by enabling the secure processing of vast data volumes and generating predictive insights that enhance efficiency and foster innovation. This robust digital infrastructure, he said, empowers the UAE to accelerate economic growth and strengthen its global competitiveness as a leading hub for digital transformation and technological innovation.

WAM