"The UAE is undergoing a shift in its digital infrastructure landscape, with a wave of data centre and cloud investments reshaping the nation into a regional hub for artificial intelligence (AI) and digital transformation. This momentum is not only redefining the UAE's technological capabilities but also reinforcing its strategic vision of becoming a global nexus for digital innovation and data sovereignty."
"The investment surge is being driven by a confluence of factors - the UAE government's digital transformation agenda; the rapid adoption of AI technologies across sectors; and a regulatory environment that encourages innovation and foreign investment. Executives from leading UAE and international firms told the Emirates News Agency (WAM) that the country's cloud infrastructure is enabling true data sovereignty, allowing organisations to manage and operate their data and AI solutions securely within national borders."
The UAE is rapidly expanding data centre and cloud infrastructure to become a regional hub for artificial intelligence and digital transformation. The datacentre market was valued at approximately $1.26bn in 2024 and is projected to surpass $3.3bn by 2030, supported by a robust pipeline of operational and planned facilities with combined capacities of several hundred megawatts. Growth is driven by the government's digital transformation agenda, rapid AI adoption across sectors, and a regulatory environment that attracts foreign investment. Sovereign wealth funds, regional developers, and global hyperscalers are investing heavily. Improved cloud infrastructure is enabling in-country data sovereignty and secure operation of data and AI solutions, while telecom operators increase capital expenditure, including Du's AED 545m in 2025.
#uae-datacentre-market #cloud-infrastructure #ai-and-digital-transformation #data-sovereignty #digital-investment
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