Currently, the UAE hosts 35 operational data centres, with an additional 24 facilities under development across five cities. This expansion is driven by a surge in demand for AI capabilities, prompting both domestic and international stakeholders to invest heavily in the nation's digital infrastructure.
Khazna Data Centers, a prominent player in the region, is constructing a 100-megawatt AI-optimised facility in Ajman. This project, the first of its kind in the Middle East, is designed to meet the high computational requirements of AI applications and is expected to be operational by the third quarter of 2025. The facility will feature advanced cooling systems and energy-efficient modular designs to enhance scalability and sustainability.
In a significant development, Emirates Integrated Telecommunications Company PJSC, known as du, has announced a partnership with Microsoft to build a hyperscale data centre valued at 2 billion dirhams . This facility will be owned and operated by du, with Microsoft as the primary tenant, and aims to bolster the UAE's digital infrastructure to support its AI ambitions.
International collaborations are also playing a crucial role in the UAE's AI strategy. A framework agreement between France and the UAE outlines plans to develop a 1-gigawatt AI-focused data centre, with investments ranging between $30 billion and $50 billion. This initiative is part of a broader effort to strengthen bilateral cooperation in advanced AI technologies and infrastructure development.
The UAE's commitment to AI is further evidenced by its high public cloud expenditure per employee, which stands at $228—the highest in the Gulf Cooperation Council region. This investment reflects the nation's focus on integrating AI across various sectors, including healthcare, transportation, and government services.
However, the rapid growth in AI applications has led to a capacity crunch in existing data centres. Industry experts highlight the need for continued investment to meet the escalating demand for data processing and storage. The UAE's data centre market is projected to grow from $5.6 billion in 2023 to $9.6 billion by 2029, underscoring the urgency for infrastructure expansion.
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UAE