The UAE is establishing its global position in cloud investments and data center projects
Abu Dhabi, 19 October / WAM / The UAE is witnessing a qualitative boom in data center projects and cloud infrastructure, driven by the acceleration of government digital transformation and the widespread adoption of artificial intelligence technologies, which strengthens its position as a leading regional center for cloud infrastructure and a preferred destination for global digital investments.
According to a report issued by Research and Markets, the data center market in the UAE is growing at a rapid pace, reaching a value of about $1.26 billion in 2024, with expectations to exceed $3.3 billion by 2030. The country also has a portfolio of operating and upcoming centers whose capacities exceed hundreds of megawatts.
Investments in this vital sector are not limited to global operators, but also include investment funds, sovereign institutions, and local and regional developers, reflecting the strategic importance of digital infrastructure as a national asset supporting sustainable economic growth.
Officials from major local companies and international companies confirmed, in statements to the Emirates News Agency, WAM, that investments in data centers in the Emirates have gained great momentum, pointing out that local clouds embody true data sovereignty within the country, as they enable organizations to manage their data and operate artificial intelligence solutions with complete safety within the borders of the country.
Fahd Al-Hassawi, CEO of du, confirmed that the company continues to invest strongly in the digital infrastructure and national data centers, which contributes to supporting the digital economy and consolidating data sovereignty within the country.
Regarding the company’s planned investments in communications networks and digital infrastructure during 2025, Al-Hassawi stated that they amounted to 545 million dirhams during the current year, compared to 442 million dirhams in the same period in 2024, while capital intensity rose to 14% compared to 12.3% in the second quarter of last year, which reflects the company’s focus on enhancing its investments in data centers and developing fifth generation networks and the platform. Super sovereign national cloud services.
Al-Hasawi pointed out that these investments contribute to consolidating the UAE’s position as a regional center for the digital economy through true data sovereignty within the country, accelerating the adoption of artificial intelligence, attracting investments and digital services, supporting vital sectors in government agencies and various sectors through managed cloud solutions, and consolidating operational sustainability by adopting technologies to increase energy efficiency and reduce the carbon footprint.
For his part, Eric Wan, Vice President of Alibaba Cloud International and General Manager of the Middle East, Turkey and Central Asia Region, stressed that the UAE market enjoys economic and legislative openness that makes it an ideal environment to attract major investments in cloud infrastructure and artificial intelligence.
He explained that the UAE and the region are among the fastest growing markets in the world in the fields of cloud services and artificial intelligence, noting that the company considers the UAE market a major focus in its global strategy, which prompted it to open a second data center in Dubai as part of its major investment plan in digital infrastructure.
In turn, Yassin Al-Bayouli, Vice President of Business Applications in the Gulf Region at Oracle, confirmed that the company continues to strengthen its presence in the UAE through an advanced network of data centers and private cloud services, to support government and private institutions and enable them to digitally transform quickly and safely.
Ahmed Shakura, Regional Vice President of the Cloudera Group in the Middle East, Turkey and Africa, said that the UAE’s ambitions to lead the digital economy are based on a fundamental pillar that is often invisible, which is the network of advanced cloud data centers that have transcended their traditional role as data warehouses to become dynamic engines that drive the adoption of artificial intelligence technologies through a secure, scalable, and highly secure environment. Performance.
He explained that artificial intelligence cannot flourish in isolation from advanced data infrastructures; It requires comprehensive access to enterprise data from various sources, including public and private clouds, local systems, and edge computing environments, noting that hybrid cloud architectures have become one of the most important strategic capabilities in the UAE for developing these capabilities.
Shakura stressed that cloud data centers have today become a major catalyst for national growth by enabling secure processing of huge amounts of data and generating proactive insights that enhance efficiency and support innovation, adding that this solid digital infrastructure enables the UAE to accelerate its economic growth and enhance its global competitiveness as a leading center for digital transformation and technological innovation.
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