Chinese e-commerce giant Alibaba has launched its second data centre in Dubai, nine years after opening its first, as it expands global cloud computing services to meet rising demand. The launch is part of Alibaba Cloud’s plan to invest 380 billion yuan ($53 billion) over three years, though the company did not disclose specific financial details.
Eric Wan, Vice President of Alibaba Cloud International and Regional General Manager at Alibaba Cloud Intelligence, said, “The Middle East’s advantageous position in fast-tracking AI adoption and its collaborative ecosystem are crucial enablers for private and public sector companies to thrive.”
The United Arab Emirates, a leading oil exporter, has been investing billions in AI initiatives. In May, the country signed a deal to build the largest AI campus outside the United States, collaborating with global tech companies including Nvidia and OpenAI. The deal is seen as a strategic move to strengthen the UAE’s AI capabilities while balancing relations with both the U.S. and China.
However, sources cited by a leading news agency have reported that the agreement has not been fully finalised due to U.S. security concerns about Beijing’s access to advanced semiconductors through third parties such as the UAE, where major Chinese firms, including Alibaba, are active.
Alibaba Cloud said the Dubai data centre would accelerate AI deployment by leveraging local infrastructure. During the GITEX Global technology and AI exhibition, the company announced partnerships with several regional firms, including Abu Dhabi-backed digital lender Wio Bank, to expand its services across sectors.
The second Dubai data centre marks a key step in Alibaba Cloud’s strategy to strengthen its presence in the Middle East and support AI adoption for both private and public enterprises in the region.
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