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

Oracle is expanding its data center presence in the UAE and Saudi Arabia as artificial intelligence adoption surges, according to Cormac Watters, executive vice president of applications for Oracle Europe, Middle East, and Africa. The company has already announced plans to open a data center in Saudi Arabia's Neom megaproject. Watters declined to disclose the exact locations of the new centers due to geopolitical concerns, stating that they aim to keep information out of the hands of potential bad actors.

Since the beginning of the regional war in February, Gulf states, including Saudi Arabia and the UAE, have faced attacks on civilian infrastructure and regional energy installations. Companies in the region are now prioritizing data sovereignty, with concerns over who controls the "big kill switch" or decision-making power over data.

Sovereign AI refers to the domestic production and deployment of AI, using local infrastructure, data, models, and talent. To address the risk of physical threats to data centers, Oracle is exploring the concept of a "digital embassy," which would allow data to be transported to another country while still maintaining sovereignty.

While this option is currently feasible for large global companies like Oracle, regulatory considerations may apply to specific sectors like banking. Watters emphasized that the Middle East, particularly the UAE and Saudi Arabia, is currently Oracle's fastest-growing region in Europe, Middle East, and Africa, and projects increased AI adoption in markets like Qatar, Kuwait, and potentially Syria as the countries continue to open up their economies.