Alibaba Cloud Opens Second Data Centre in Dubai to Boost AI and Tech Expansion
Alibaba Group’s cloud computing division has launched its second data centre in Dubai, nearly a decade after opening its first in the region. The move underscores the Chinese technology giant’s efforts to expand its global cloud footprint and support rising demand for digital and artificial intelligence (AI) services across the Middle East.
Expanding Global Cloud Operations
In a statement released on Tuesday, Alibaba Cloud — the digital technology and AI arm of Alibaba (9988.HK) — said the new facility is part of the company’s broader plan to invest 380 billion yuan ($53 billion) over three years. Although financial specifics for the Dubai project were not revealed, the expansion reflects the company’s growing commitment to strengthening its infrastructure in strategic markets.
Eric Wan, vice president of Alibaba Cloud International and regional general manager at Alibaba Cloud Intelligence, said the Middle East’s rapid embrace of AI and its collaborative business ecosystem make it an ideal hub for technology-driven innovation. He added that the region’s growing appetite for cloud solutions is helping both public and private sector organisations accelerate digital transformation.
UAE’s Growing AI Ambitions
The United Arab Emirates has become a key destination for global tech investment as it pushes to position itself as a leader in AI innovation. Under an agreement signed in May, the UAE is developing what will be the largest AI campus outside the US, in partnership with major technology firms including Nvidia and OpenAI.
The deal was widely viewed as a strategic achievement for the Gulf nation, which has sought to balance its close ties with the US — its longtime ally — and its expanding economic relationship with China, its largest trading partner. However, Reuters reported that US officials have expressed security concerns about potential Chinese access to advanced semiconductor technology through third-party agreements in the UAE.
Strengthening Local Partnerships
During the GITEX Global technology and AI exhibition in Dubai, Alibaba Cloud announced new partnerships with several regional firms. Among them is Wio Bank, a digital lender backed by Abu Dhabi, which plans to leverage Alibaba Cloud’s local infrastructure to accelerate AI-powered financial services.
The launch of the second data centre highlights Alibaba Cloud’s ambition to play a larger role in shaping the Middle East’s digital economy, providing scalable, secure and AI-optimised cloud services to meet the region’s fast-growing technology needs.
with inputs from Reuters
