The United Arab Emirates have solidified their position as a regional hub for attracting global corporate data centers in technology and artificial intelligence in recent times. This has led to a qualitative surge in data center and cloud infrastructure projects, driven by the accelerating digital transformation in the government sector and the widespread adoption of AI technologies. Experts and IT specialists told «Emirates Today» that the UAE has strengthened its position as a competitive regional center for data centers and cloud infrastructure, becoming a preferred destination for global digital investments. They noted that local markets have seen significant indicators in attracting many new global data centers that have recently opened offices in the country. A study by «Research and Markets» revealed that the data center market in the UAE is growing rapidly, with its value expected to exceed $3.3 billion by 2030. The report highlights that the country is experiencing a compound annual growth rate of around 18% in the data center market, with significant new capabilities being introduced for local markets. Data from «Boston Consulting Group» showed that the UAE has the largest number of existing data centers in the region, which is 35, while the number of data centers under construction and planning in the country in the coming periods is estimated at around 81. The CEO of the global technology company «Zoho», Shailesh Kumar Devi, said: «The company recently announced the launch of data centers for the first time in the UAE, through two offices in Dubai and Abu Dhabi». He noted that «initiatives to open data centers in the UAE will enable companies to store their data locally, which enhances data sovereignty and supports the national cybersecurity agenda, in addition to supporting government and semi-governmental entities». He explained that «data centers support the adoption of cloud computing and accelerate the digital transformation in most business areas, contributing to the support of the digital economy and the consolidation of data sovereignty within the country». He added that «these investments contribute to consolidating the UAE's position as a regional hub for the digital economy through the actual data sovereignty within the country, accelerating the adoption of artificial intelligence, attracting digital investments and services, supporting vital sectors in government and diverse sectors through managed cloud solutions, and enhancing operational sustainability by adopting technologies to improve energy efficiency and reduce the carbon footprint». He confirmed that «cloud data centers have become a main driver of national growth by enabling the secure processing of massive amounts of data and generating predictive insights that enhance efficiency and support innovation. This robust 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». Technology expert and sales director for the region and India at «Western Digital», Auis Mohammed, believes that «the trend of many global companies opening data centers in UAE markets supports the country's status as a regional headquarters for global corporate data centers». He added that «data centers have become one of the pillars of the new economy, which has led some to compare them to the wealth of the future or new oil, given their value and utility in supporting global economies by leveraging data centers for economic decision-making and corporate development». IT expert Haidar Nizam said: «The UAE has become an attractive destination for data centers of global technology companies, which has enhanced its status as a regional headquarters for many data centers in the region». He noted that «data centers support the transformation of companies at higher rates in adopting digital transformation policies and leveraging data in policy-making, and making decisions based on data analysis through advanced artificial intelligence technologies». He explained that the UAE is witnessing a qualitative leap in data center and cloud infrastructure projects, driven by the acceleration of digital government transformation and the widespread adoption of AI technologies, which enhances its position as a leading regional center for cloud infrastructure and a preferred destination for global digital investments.
UAE Emerge as Regional Hub for Global Data Centers
The United Arab Emirates are solidifying their position as a regional hub for attracting global corporate data centers in technology and AI. Driven by accelerated digital transformation and widespread AI adoption, the country is experiencing a qualitative surge in data center and cloud infrastructure projects. The market is projected to exceed $3.3 billion by 2030, establishing the UAE as a preferred destination for global digital investments and a leading regional center.