The UAE data centre market is expanding rapidly, reaching $1.26bn in 2024 and is projected to surpass $3.3bn by 2030 amid surging AI adoption.
The UAE is experiencing a major boom in data centre and cloud infrastructure projects, powered by accelerated government digital transformation and widespread adoption of artificial intelligence (AI) technologies.
This growth is reinforcing the nation’s position as a leading regional hub for cloud infrastructure and a preferred destination for global digital investments.
UAE data centre market
According to a Research and Markets report, the UAE’s data centre market is expanding rapidly, valued at $1.26bn in 2024 and projected to surpass $3.3bn by 2030.
The country already maintains a large portfolio of operational and upcoming data centres with combined capacities reaching several hundred megawatts.
Investments in the sector extend beyond international operators to include sovereign funds, local developers, regional investors, and investment firms, highlighting the strategic importance of digital infrastructure as a national economic asset supporting sustainable growth.
Executives from leading UAE and international firms told the Emirates News Agency that the surge in investment reflects the growing importance of data sovereignty, enabling organisations to operate and manage their data and AI solutions securely within national borders.
du increases infrastructure investment
Fahad Al Hassawi, CEO of du, said the company continues to invest heavily in digital infrastructure and national data centres to strengthen the UAE’s digital economy and enhance data sovereignty.
Discussing du’s planned telecommunications and infrastructure investments for 2025, Al Hassawi said expenditure reached AED545m ($148m) this year, compared with AED442m ($120m) in 2024.
Capital intensity rose to 14 per cent from 12.3 per cent in the second quarter of last year, reflecting du’s increased focus on data centres, 5G network development, and national sovereign-cloud platforms.
He noted that these investments reinforce the UAE’s position as a regional digital hub, accelerating AI adoption, attracting global digital investment, and supporting key government and private-sector initiatives through managed cloud services that improve operational sustainability and reduce carbon emissions.
Alibaba Cloud expands in Dubai
Eric Wan, Vice President of Alibaba Cloud International and General Manager for the Middle East, Turkey, and Middle Asia at Alibaba Cloud Intelligence, said the UAE’s open economic and regulatory environment 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 global markets in both cloud services and AI.
The company views the UAE as a key global hub, which led to the opening of a second data centre in Dubai as part of Alibaba Cloud’s large-scale digital-infrastructure expansion.
Oracle digital transformation
Yassine El Bakiouli, Vice President of Application Sales, Gulf Commercial at Oracle, said the company is expanding its network of private data centres and cloud services in the UAE to empower 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 built on an essential but often unseen foundation — a network of advanced cloud data centres that have evolved from simple storage facilities into dynamic engines powering AI adoption.
He explained that AI cannot thrive without advanced data infrastructure, which enables 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 now act as key drivers of national growth, enabling the secure processing of vast data volumes and generating predictive insights that improve efficiency and foster innovation.
This robust 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.
Digital infrastructure
Industry analysts say the UAE’s data centre expansion aligns with the country’s strategy to build a knowledge-based, AI-driven economy.
With growing investment from both public and private sectors, the nation is establishing itself as the digital backbone of the Middle East, enabling next-generation services, innovation, and sustainable economic diversification.
