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Dubai bets on AI-driven data centres to unlock $3.89 billion in economic growth by 2028

Digital Dubai outlines measures to realize vision for AI-enabled data center sector
Dubai bets on AI-driven data centres to unlock $3.89 billion in economic growth by 2028
The measures align with Dubai's D33 economic agenda to boost productivity by 50% through digital innovation.

Digital Dubai, in cooperation with its partners in the government and private sectors, has begun taking practical steps to implement the Strategic Vision for the Data Centre Economy in Dubai. This vision was approved by the Executive Council earlier to solidify the emirate’s position as a leading model for future economies backed by emerging technologies.

This aligns with the objectives of the Dubai Economic Agenda D33, which aims to increase the productivity of Dubai’s economy by 50 percent through digital innovation.

Analysis of the current situation

Digital Dubai has conducted a thorough and realistic analysis of the current situation. This analysis concluded that there are significant opportunities for coordination between the relevant parties to attract and establish potential data centres for artificial intelligence, making Dubai an attractive destination for such investments.

Potential economic impact

The study conducted by Digital Dubai showed that adopting the strategic vision for AI-powered data centres will create over AED14.3 billion ($3.89 billion) in added value by 2028 and contribute to generating more job opportunities in the digital economy related to data centres.

Enhancing Dubai’s technological readiness

Implementing this strategic vision is expected to enhance Dubai’s readiness for next-generation technologies (Web 3.0), including the Metaverse, Smart Cities, and the Internet of Things. It will also help strengthen partnerships with other sectors in areas such as sustainable artificial intelligence.

Coordinated efforts among stakeholders

Digital Dubai is working closely with the Telecommunications and Digital Government Regulatory Authority, Dubai Electricity and Water Authority, Dubai Municipality, the General Secretariat of the Executive Council, and the Dubai Department of Economy and Tourism to take coordinated measures aimed at enhancing Dubai’s preparedness for the economy of the future and strengthening its leading position in this field.

Additionally, the strategic vision for the AI-powered data centre economy represents an advanced stage in digital leadership, the digital economy, and the creation of a bright future for the emirate.

Comprehensive integration and coordination

Furthermore, adopting this vision would unleash new dynamics that would pave the way for achieving comprehensive integration and coordination between various entities working in this field, including Digital Dubai, the Department of Economy and Tourism, the Dubai Electricity and Water Authority, the Telecommunications and Digital Government Regulatory Authority, and non-governmental agencies.

Read more: G20: UAE to double digital economy’s GDP contribution to 19.4 percent with $20 billion investment

Key initiatives

These initiatives further include developing high-performance computing, ensuring the use of advanced data centres, increasing reliance on renewable energy, facilitating relevant government procedures, improving access to renewable energy, improving energy-saving processes, and enhancing the government’s coordination role in terms of planning, land, energy, and others.

These initiatives also include supporting the strategic position of artificial intelligence readiness in Dubai.

Future endeavors

Moreover, the next stage will witness efforts and initiatives to enhance comprehensive integration among stakeholders in the context of the data centre economy, as Digital Dubai is currently working to raise the level of cloud computing adoption in the government sector.

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