ASILA AL BADI (ABU DHABI)

The UAE is cementing its position as a regional leader in digital infrastructure, with data centre capacity projected to surge by 165% to 950MW by 2028, according to a new report by Emirates NBD Research. 

The country currently accounts for about 55% of the GCC’s data centre investments. Its total pipeline of $46.1 billion puts it ahead of Saudi Arabia’s $35.3 billion, the report said.

The UAE’s data centre growth trajectory is being led by Khazna Data Centres and major AI infrastructure projects such as G42’s Stargate AI campus, the research noted. 

There are currently 35 data centres operating in the country: 16 in Abu Dhabi, 18 in Dubai, and one in Fujairah. Five new Khazna facilities, valued at $1.28 billion, are under construction and expected to add about 210MW of capacity. Further momentum comes from G42’s Stargate AI campus, which alone will contribute 200MW in its first phase by mid-2026.

Renewable Energy Sources

With growing capacity, yearly power use by UAE data centres is expected to rise to more than double from 5.6 terawatt-hours (TWh) to 12.6 TWh by 2028. This represents about 6% of the country’s overall power consumption. To meet this rising demand, parallel investments of $28.2 billion are being directed towards new power generation projects, the report noted.

“The country plans to add 21,714 MW of power generation capacity by 2030, led by solar, which will contribute 12,064 MW by the end of the decade. With one of the highest solar capacity factors globally, estimated at 20 to 25%, the UAE is expected to generate 46.7 TWh annually from solar by 2028,” it said.  

The report also highlighted the role of Barakah Nuclear Energy Plant, which already supplies 40 TWh annually — about a quarter of the country’s electricity — and Masdar’s upcoming 1GW clean power facility, designed to ensure an uninterrupted renewable power supply.

A Top AI Hub

The UAE’s solid digital infrastructure reinforces its position in the global AI race. It ranked 5th worldwide in Stanford University’s Global AI Vibrancy Tool and 13th in the Oxford Insights’ Government AI Readiness Index.

With more than 188,000 AI chips deployed and 6.4GW of computing capacity, the UAE is rapidly positioning itself as a top global AI hub.

Analysts believe that with its combination of AI leadership, clean energy, and large-scale digital investment, the UAE has become a regional benchmark for sustainable innovation.