AI-Powered Data Centre Economy & Digital Infrastructure Expansion

Dubai is investing heavily in its digital backbone, rapidly expanding data centre capacity to support AI, cloud computing, Web3, and future smart city services. The UAE’s live data-centre capacity has surpassed 376 MW, giving it one of the region’s strongest digital infrastructure foundations and positioning Dubai as a regional data powerhouse.

At Dubai AI Week 2025, du announced a AED 2 billion hyperscale data centre, with Microsoft confirmed as a strategic tenant. This facility is part of Dubai’s broader plan to build a sustainable, energy-efficient, and AI-ready data centre ecosystem capable of supporting massive high-performance computing workloads and enterprise-scale digital operations.

Large-scale AI infrastructure is also accelerating with the Stargate UAE AI campus, jointly developed by G42 and Oracle. Designed to host millions of GPUs, the campus will enable advanced AI model training, real-time analytics, and enterprise-grade cloud capabilities. This reinforces Dubai’s ambition to lead in AI infrastructure across the Middle East and beyond.

With the UAE data-centre market valued at US$ 1.26 billion (2024) and more than 35 active third-party colocation facilities, Dubai’s digital economy is well supported for the next decade. The focus on green data centres, cloud adoption, and hyperscale facilities ensures long-term scalability for AI-driven economic growth.

AI-Powered Data Centre Economy & Digital Infrastructure Expansion