The UAE is accelerating its smart city ambitions by scaling up investments in data centres, positioning digital infrastructure as the foundation of future-ready urban life and a data-driven economy.
As artificial intelligence, the Internet of Things and digital government services expand, data has become central to how cities operate. Data centres now serve as the core infrastructure enabling real-time management of transport, energy, public services and safety systems across the country.
Amel Chadli, President of the Gulf Cluster at Schneider Electric, said data centres function as the brain of smart cities, processing massive volumes of information instantly. She noted that advanced urban environments can generate several terabytes of data, making secure and flexible local infrastructure essential to support interconnected systems powered by AI and IoT.
Chadli pointed to initiatives such as Masdar City, the Dubai Urban Plan 2040 and the Digital Government Strategy 2025 as evidence of the UAE’s commitment to data-led urban development. She added that rising AI adoption will significantly increase power demand, with server racks potentially requiring between 20 and 50 kilowatts, reinforcing the need for energy-efficient and sustainable data centres.
Kamel Al-Tawil, Managing Director for Middle East and North Africa at Equinix, said high capacity, ultra-connectivity and rapid response are critical to enabling smart services. He stressed the importance of localising data traffic to reduce latency and improve performance, particularly as a large share of Middle East internet traffic still routes through Europe.
Market indicators reflect this momentum. Research forecasts suggest the UAE data centre market will exceed $3.3 billion by 2030, with plans to double existing facilities. The expansion supports the country’s growing smart city ecosystem and strengthens its role as a regional data hub.
Global rankings underline the progress, with Dubai and Abu Dhabi placing among the world’s top five smart cities in 2025.
News Source: Emirates News Agency
