Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, has inaugurated its second data center in Dubai, marking a significant milestone in its Middle East expansion. This development, announced during the GITEX Global 2025 technology exhibition, underscores Alibaba Cloud’s commitment to supporting the UAE’s ambitious digital transformation and AI initiatives.
The new facility, which complements the original data center established in 2016, is part of Alibaba’s broader strategy to invest 380 billion yuan (approximately $53 billion) over three years in global cloud and AI infrastructure. This expansion aims to address the increasing demand for cloud computing and AI services in the Middle East, particularly as businesses and governments accelerate their digitalization efforts.
The Dubai data center will enhance Alibaba Cloud’s offerings in the region, including advanced AI solutions, big data analytics, elastic computing, and storage services. These capabilities are designed to support local enterprises in their adoption of AI technologies and digital transformation.
In conjunction with the data center launch, Alibaba Cloud has formed strategic partnerships with several regional organizations. Notably, Wio Bank, a digital financial platform backed by Abu Dhabi, has signed a memorandum of understanding to integrate Alibaba Cloud’s AI and cloud services into its operations. This collaboration aims to develop AI-powered banking agents to enhance customer service and operational efficiency.
The launch aligns with the UAE’s broader vision to become a global leader in AI and digital innovation. The country is investing heavily in AI infrastructure, including the development of the Stargate UAE AI campus, which is set to become one of the world’s largest data center hubs. This initiative reflects the UAE’s commitment to fostering a collaborative ecosystem that enables both public and private sector companies to thrive in the AI era.
With the establishment of its second data center in Dubai, Alibaba Cloud is poised to play a pivotal role in advancing AI adoption and digital transformation across the Middle East. The company’s expanded infrastructure and strategic partnerships position it to meet the evolving needs of businesses and governments in the region, driving innovation and economic growth.
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