The UAE is emerging as one of the fastest-growing data centre markets in the region, driven by accelerating digital transformation, rapid adoption of artificial intelligence, and a strong national focus on data sovereignty.
A new report by Research and Markets values the UAE’s data centre market at US$1.26 billion in 2024, projecting it to exceed US$3.3 billion by 2030. The country’s expanding portfolio of operational and upcoming facilities, boasting several hundred megawatts of capacity, highlights the growing strategic importance of digital infrastructure as a foundation for sustainable economic growth.
Investments in this sector span global operators, sovereign funds, and regional developers, underscoring confidence in the UAE’s role as a secure and business-friendly digital hub. Executives from major companies say local cloud infrastructure ensures true data sovereignty, enabling organisations to manage and safeguard data within national borders.
Fahad Al Hassawi, CEO of du, said the company has increased its digital infrastructure and telecommunications investments to AED545 million this year, up from AED442 million in 2024. He noted that these investments reinforce the UAE’s leadership in the digital economy through enhanced 5G networks, sovereign cloud services, and energy-efficient technologies that reduce carbon emissions.
Alibaba Cloud, Oracle, and Cloudera have also expanded their UAE presence, citing the nation’s open regulatory environment and strategic geographic position. Eric Wan of Alibaba Cloud confirmed the company’s second data centre in Dubai, while Oracle and Cloudera executives highlighted the UAE’s advanced hybrid cloud capabilities as key enablers for AI-driven innovation.
Industry leaders agree that the UAE’s robust data centre ecosystem is now a cornerstone of its digital economy, powering AI adoption, attracting international investment, and strengthening its competitiveness on the global stage.
News Source: Emirates News Agency
