Alibaba Cloud has officially opened its second data centre in Dubai, marking a significant step in the company’s global expansion. The project is part of a broader investment of RMB 380 billion (approximately US$53 billion) over three years into digital infrastructure worldwide. The new facility is expected to enhance the UAE’s capabilities in cloud computing, artificial intelligence, and data-driven innovation.
The Dubai data centre will serve both public and private sector clients, enabling faster adoption of AI technologies and digital services. By expanding its cloud footprint, Alibaba Cloud aims to support the UAE’s vision of becoming a regional hub for technology and innovation. The facility offers high-performance computing, storage, and networking services critical for AI research and large-scale data processing.
This development also reflects the UAE’s commitment to fostering public-private collaboration in technology. Government agencies, businesses, and startups can leverage advanced cloud infrastructure to improve efficiency, drive innovation, and scale AI applications. The presence of Alibaba Cloud strengthens the ecosystem for digital transformation across key sectors such as finance, healthcare, education, and logistics.
Alibaba Cloud’s first Dubai data centre opened in 2022 and has been supporting enterprises in the region with secure, reliable, and scalable cloud solutions. The second facility increases capacity and resilience, ensuring businesses have uninterrupted access to critical cloud services. It also aligns with the UAE’s push for sustainable and energy-efficient infrastructure in technology projects.
The investment demonstrates Alibaba’s confidence in the UAE as a strategic hub for technology growth in the Middle East. With the second data centre, the company can deliver faster services, reduce latency, and meet increasing demand for AI and cloud solutions in the region.
Experts note that such expansions are crucial for the UAE to maintain its competitive edge in the global tech landscape. Access to advanced cloud infrastructure helps local firms innovate faster, attract international partnerships, and drive economic diversification.
Alibaba Cloud’s Dubai expansion also provides opportunities for knowledge transfer and skill development. The company is expected to collaborate with universities, research institutions, and tech startups, fostering talent development in AI, cloud computing, and cybersecurity.
As digital transformation accelerates globally, strategic investments like Alibaba Cloud’s second Dubai data centre position the UAE as a leader in technology adoption. It strengthens the country’s role as a regional hub for innovation, while providing businesses and government entities with the tools to implement AI-driven solutions efficiently and securely.
