The UAE is a regional destination for data centers of global technology and artificial intelligence companies

The UAE has consolidated its position as a regional center for attracting the data centers of international technology and artificial intelligence companies during the recent period, which has made it witness 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.

Information technology experts and specialists told Emirates Today that the UAE has strengthened its position as a competitive regional center for data centers and cloud infrastructure, and has become a preferred destination for global digital investments, pointing out that the local markets have witnessed remarkable indicators of attracting many new global data centers that have recently opened their headquarters in the country.

A study issued by Research and Markets revealed that the data center market in the UAE is growing at a rapid pace, as its value is expected to exceed $3.3 billion by 2030, pointing out that the country is witnessing growth at a compound annual rate of approximately 18% in the data center market, with the entry of large new capabilities into service for local markets.

Data from the Boston Consulting Group showed that the UAE has the largest number of data centers already existing in the region, which is 35 centers, while the number of data centers that are under construction and planning in the country in the coming periods is estimated at about 81 centers.

Shailesh Kumar Devi, CEO of Zoho, the global technology company, said, “The company recently announced the launch of its data centers for the first time in the Emirates, through two headquarters in Dubai and Abu Dhabi,” pointing out that “the initiatives to open data centers in the Emirates will enable companies to store their data locally, which enhances data sovereignty and supports the national cybersecurity agenda, in addition to supporting services for government and semi-government agencies.”

He explained that “data centers support the adoption of cloud computing and advance the process of digital transformation in most areas of business, thus contributing to supporting the digital economy and consolidating data sovereignty within the country.”

He 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 raise energy efficiency and reduce the carbon footprint.”

He 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.

Owais Muhammad, a technology expert and sales manager for the regional and Indian markets at Western Digital, said, “The trend of many international companies to open data centers in the UAE markets supports the country’s position as a regional headquarters for international companies’ data centers.”

He added, “Data centers have become one of the tributaries of the new economy, which has made some compare them to the wealth of the future or the new oil, given their value and feasibility in supporting global economies based on benefiting from data centers in making economic decisions and developing companies.”

Information technology expert, Haider Nizam, said, “The UAE has become an attractive destination for data centers of international technology companies, which has strengthened its position as a regional headquarters for many data centers in the region,” pointing out that “data centers support companies’ transformation at greater rates in relying on digital transformation policies and benefiting from data in setting policies and making decisions based on data analysis through advanced artificial intelligence technologies.”

He explained that 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.