Oracle opening more data centres in UAE and Saudi Arabia as AI demand soars

Oracle is expanding its data centers in the United Arab Emirates (UAE) and Saudi Arabia to meet the increasing demand for artificial intelligence (AI), according to a senior executive. Cormac Watters, executive vice president of applications for Oracle Europe, Middle East, and Africa, stated that the company has grown the number of data centers in these countries and plans to open more in the near future. The demand for AI is significant, driving this expansion.

The UAE and Saudi Arabia, the region's two biggest economies, have faced attacks from Iran during the regional war that began on February 28. Oracle has been cautious about disclosing the exact locations of its data centers due to geopolitical concerns. Watters emphasized the importance of data sovereignty, as customers are now prioritizing strategic transformations over routine purchases. This has led to discussions about digital embassies, where data can be moved physically to another country if necessary.

Oracle is not only focusing on physical expansion but also on digital solutions. For instance, if a data center provider offers a sovereign cloud in Abu Dhabi, there is an option to transport it physically to another location while maintaining sovereignty. This concept, known as digital embassy, is becoming increasingly relevant due to the physical threat of AI infrastructure.

The Middle East, particularly the UAE, is leading the way in AI adoption in the region. Oracle is seeing growth opportunities in other countries such as Qatar, Kuwait, and Syria, which is opening its economy. However, regulatory considerations will need to be addressed for certain entities like banks. Watters remains optimistic about the Middle East's leadership in AI, attributing it to the region's organizations' faster adoption pace and their willingness to embrace change.