The UAE information centre market is increasing quickly, reaching $1.26bn in 2024 and is projected to surpass $3.3bn by 2030 amid surging AI adoption.
The UAE is experiencing a significant increase in information centre and cloud infrastructure initiatives, powered by accelerated authorities digital transformation and widespread adoption of synthetic intelligence (AI) applied sciences.
This progress is reinforcing the nation’s place as a number one regional hub for cloud infrastructure and a most well-liked vacation spot for international digital investments.
UAE information centre market
Based on a Analysis and Markets report, the UAE’s information centre market is increasing quickly, valued at $1.26bn in 2024 and projected to surpass $3.3bn by 2030.
The nation already maintains a big portfolio of operational and upcoming information centres with mixed capacities reaching a number of hundred megawatts.
Investments within the sector prolong past worldwide operators to incorporate sovereign funds, native builders, regional buyers, and funding corporations, highlighting the strategic significance of digital infrastructure as a nationwide financial asset supporting sustainable progress.
Executives from main UAE and worldwide corporations instructed the Emirates Information Company that the surge in funding displays the rising significance of knowledge sovereignty, enabling organisations to function and handle their information and AI options securely inside nationwide borders.
du will increase infrastructure funding
Fahad Al Hassawi, CEO of du, mentioned the corporate continues to take a position closely in digital infrastructure and nationwide information centres to strengthen the UAE’s digital financial system and improve information sovereignty.
Discussing du’s deliberate telecommunications and infrastructure investments for 2025, Al Hassawi mentioned expenditure reached AED545m ($148m) this 12 months, in contrast with AED442m ($120m) in 2024.
Capital depth rose to 14 per cent from 12.3 per cent within the second quarter of final 12 months, reflecting du’s elevated concentrate on information centres, 5G community improvement, and nationwide sovereign-cloud platforms.
He famous that these investments reinforce the UAE’s place as a regional digital hub, accelerating AI adoption, attracting international digital funding, and supporting key authorities and private-sector initiatives by way of managed cloud providers that enhance operational sustainability and scale back carbon emissions.
Alibaba Cloud expands in Dubai
Eric Wan, Vice President of Alibaba Cloud Worldwide and Normal Supervisor for the Center East, Turkey, and Center Asia at Alibaba Cloud Intelligence, mentioned the UAE’s open financial and regulatory atmosphere makes it excellent for attracting main investments in cloud infrastructure and AI.
He added that the UAE and the broader area are among the many fastest-growing international markets in each cloud providers and AI.
The corporate views the UAE as a key international hub, which led to the opening of a second information centre in Dubai as a part of Alibaba Cloud’s large-scale digital-infrastructure growth.
Oracle digital transformation
Yassine El Bakiouli, Vice President of Software Gross sales, Gulf Business at Oracle, mentioned the corporate is increasing its community of personal information centres and cloud providers within the UAE to empower private and non-private entities to realize fast and safe digital transformation.
Ahmad Shakoura, Group Vice President – Rising Markets (META) at Cloudera, mentioned the UAE’s ambitions to steer the digital financial system are constructed on a necessary however typically unseen basis — a community of superior cloud information centres which have developed from easy storage services into dynamic engines powering AI adoption.
He defined that AI can not thrive with out superior information infrastructure, which allows entry to organisational information from a number of sources — together with private and non-private clouds, on-premises programs, and edge-computing environments.
He famous that hybrid cloud infrastructures have turn out to be one of many UAE’s most strategic enablers for growing these capabilities.
Shakoura added that cloud information centres now act as key drivers of nationwide progress, enabling the safe processing of huge information volumes and producing predictive insights that enhance effectivity and foster innovation.
This sturdy infrastructure, he mentioned, empowers the UAE to speed up financial progress and strengthen its international competitiveness as a number one hub for digital transformation and technological innovation.
Digital infrastructure
Business analysts say the UAE’s information centre growth aligns with the nation’s technique to construct a knowledge-based, AI-driven financial system.
With rising funding from each private and non-private sectors, the nation is establishing itself because the digital spine of the Center East, enabling next-generation providers, innovation, and sustainable financial diversification.
