Digital Dubai, an entity established to oversee Dubai’s digital transformation, has approved a series of measures to implement the Strategic Vision for the Data Center Economy in Dubai. This is in line with the objectives of the Dubai Economic Agenda D33 that aims to raise the productivity of Dubai’s economy by 50 percent through digital innovation.
What is Digital Dubai?
Digital Dubai was established by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President & Prime Minister of the United Arab Emirates (UAE), and Ruler of Dubai, in June 2021, to develop and oversee the implementation of policies and strategies that govern all matters related to Dubai’s information technology, data, digital transformation, and cyber-security. Digital Dubai brings together the expertise of four entities – Dubai Electronic Security Center, Dubai Statistics Center, Dubai Data Establishment, and Smart Dubai Government Establishment.
Today, it is working alongside the Telecommunications and Digital Government Regulatory Authority, Dubai Electricity and Water Authority (DEWA), Dubai Municipality, the General Secretariat of the Executive Council, and the Dubai Department of Economy and Tourism, to take coordinated measures aiming to enhance Dubai’s readiness for the economy of the future.
Measures to implement Dubai’s Vision for the Future
The Strategic Vision for the Data Center Economy aims to make Dubai a leading destination for sustainable data centers that are ready for a rapidly transforming digital economy driven by Artificial Intelligence (AI). The measures approved by Digital Dubai will play a key role in making this vision a reality.
According to a press release, upcoming initiatives “include developing high-performance computing, ensuring the use of advanced data centers, increasing reliance on renewable energy, facilitating relevant government procedures, improving access to renewable energy, improving the process of saving energy, and enhancing the government’s coordination role in terms of planning, land, energy, and others.”
It further said, “It is expected that adopting this strategic vision will enhance Dubai’s readiness for next-generation technologies (Web 3.0) including the Metaverse, Smart Cities, and the Internet of Things. It will also contribute to strengthening partnerships with other sectors in areas such as sustainable artificial intelligence.”
Billion Dollar Value Addition
According to Arizton Advisory & Intelligence, the data center market size in the UAE was valued at US$ 1.5 billion in 2023, and expected to grow to US$ 2.65 billion by 2029, growing at a Compounded Average Growth Rate (CAGR) of 9.95 percent during the forecast period.
A study conducted by Digital Dubai showed that adopting the strategic vision for AI-backed data centers will lead to the creation of an added value of more than AED 14.3 billion (US$ 3.89 billion) by 2028.
Commenting on the Executive Council’s adoption of the Strategic Vision for the Data Center Economy, His Excellency Hamad Obaid Al Mansoori, Director General of Digital Dubai said, “We have an attractive and pioneering investment environment, and the digital economy in Dubai is an essential pillar of Dubai’s digital strategy, which aims to increase its contribution to the emirate’s overall economy by US$ 100 billion.”
“With the ongoing global transformations, new economic patterns and business models are emerging, presenting future opportunities for dynamic economies like Dubai’s. The data center economy exemplifies these transformations,” said His Excellency Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment.
“By future-proofing Dubai for the next generation of technologies we are fostering a fertile ground for innovation that unlocks significant economic potential, aligned with the goals of the D33 Agenda,” said Hadi Badri, CEO of Dubai Economic Development Corporation, the economic development arm of the Dubai Department of Economy and Tourism.
