Alibaba Cloud Opens Second Data Center in Dubai to Drive AI-Powered Digital Transformation

Alibaba Cloud announced the opening of its second data centre in Dubai at GITEX GLOBAL 2025. The digital technology and intelligence backbone of Alibaba Group reveals this move to be a strategic expansion in response to the growing demand for AI services and cloud computing from local businesses.

The move reinforces Alibaba Cloud’s commitment to supporting AI-powered digital transformation across the Middle East, marking a new milestone for the entity since its entry into the region in 2016, when it set up its first data centre in Dubai. As always, Dubai continues to foster companies that work to assist the city in reaching its sustainable, economic, and technological advancement goals.

Alibaba’s $53 Billion Investment Plan

This latest Alibaba Cloud Dubai data center launch is part of Alibaba’s previously established $53 billion investment plan to enhance AI and cloud infrastructure in Dubai over the next three years. The new facility underscores the company’s commitment to supporting enterprises in the region and beyond to thrive by implementing its robust, secure, and scalable cloud infrastructure and AI technologies.

Now, Alibaba Cloud can provide a broader portfolio of cloud-native and AI-powered solutions, including big data, elastic computing, storage, and networking. The additional capacity will significantly improve resilience, performance, network offerings, and disaster recovery capabilities for enterprises operating in the region.

Every large business and local customers hoping to integrate AI and cloud adoption can find expert assistance with Alibaba on the ground. These efforts by Alibaba Cloud are projected to achieve significant improvements in cloud resilience and network performance thanks to Alibaba Cloud AI solutions and core cloud products.

Eric Wan, Vice President of Alibaba Cloud International and General Manager for the Middle East, Turkey, and Central Asia, highlighted the importance of the Alibaba Cloud Middle East expansion:

“Launching a new data center in Dubai as well as announcing innovative collaborations at GITEX Global 2025 are important signposts on our robust journey of expansion in the region. 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. We look forward to enabling more local and global businesses to succeed with our robust infrastructure and advanced AI solutions in the region.”

Strengthening Regional Partnerships for an AI-Powered Digital Era

Alongside the data center launch, Alibaba Cloud announced a series of strategic collaborations with leading regional and global partners across the finance, gaming, healthcare, and technology sectors, showcasing its expanding role in Dubai cloud computing growth, business growth and the AI-driven digital economy.

Wio Bank:

The UAE’s leading digital bank, Wio Bank, signed an MoU with Alibaba Cloud to enhance cloud and AI integration in fintech. The Wio Bank Alibaba Cloud partnership will use Alibaba Cloud’s Qwen large language model and Platform for AI (PAI) to develop AI-powered banking agents that improve efficiency, scalability, and customer experience.

BYOND Asia:

A pioneer in AI-powered digital humans, BYOND Asia, partnered with Alibaba Cloud to deploy Arabic-first ‘HoloMe’ avatars across industries. These BYOND Asia HoloMe avatars will be used in media, retail, and public services. The collaboration will leverage Alibaba Cloud’s Model Studio AI development platform and global infrastructure to enhance scalability and compliance.

ACCUMED:

The region’s largest healthcare revenue cycle management provider, ACCUMED, announced a collaboration with Alibaba Cloud and local partner OneCloud to integrate AI into eClaims and medical coding systems. Using Alibaba’s Qwen model, ACCUMED aims to transform healthcare operations through automation and advanced data processing thanks to the ACCUMED Alibaba Cloud collaboration.

The Game Company:

The AI-enhanced cloud gaming platform, The Game Company, will harness Alibaba Cloud’s low-latency infrastructure to deliver console-grade gaming experiences across devices, while exploring future Gaming-as-a-Service models powered by AI and Web3 technologies.

Atos:

A global digital transformation leader, Atos, expanded its partnership with Alibaba Cloud to become a reseller partner for the Middle East. The Atos Alibaba Cloud reseller partnership will combine Alibaba Cloud’s advanced technologies with Atos’s expertise in cloud migration and managed services, helping enterprises accelerate digital transformation.

Supporting the Region’s AI Ambitions

Since its entry into the Middle East market, Alibaba Cloud has supported public institutions and private companies across key industries. These include providing the sectors of banking, government healthcare, and media with scalable cloud and AI solutions. The entity’s most recent announcement brings something greater.

To highlight, the new Dubai data center strengthens Alibaba Cloud’s position as a trusted enabler of AI-driven innovation, supporting the UAE’s broader vision of becoming a global technology and digital economy hub. With greater visionary plans ahead, it seems Alibaba Cloud and Dubai are only getting started on their technological innovation strategies.

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