Emirates NBD has reaffirmed that the UAE has solidified its position as a regional leader in artificial intelligence (AI) infrastructure, driven by significant investments and long-term plans for the expansion of data centers and enabling technologies.
Currently, the nation operates 35 data centers, alongside a substantial investment portfolio totaling $44 billion, which constitutes more than half of the total investments by Gulf Cooperation Council (GCC) countries in this essential sector.
The bank, through a recent report titled “GCC Economies to Harness AI Advantages in 2026,” indicated that this momentum reflects the UAE’s structural advantages, including rapid project execution,
the availability of energy infrastructure, and advanced relationships with major global technology firms. These factors position the UAE favorably to capture economic benefits associated with the initial phase of AI expansion.
According to PwC estimates, AI is projected to contribute approximately $96 billion to the UAE’s GDP by 2031, which represents 13.6% of the GDP, the highest percentage among Gulf countries, highlighting the increasing impact of these investments on long-term economic growth.
Regional Leader
The UAE has emerged as a regional leader in AI infrastructure, boasting 35 operational data centers and an investment pipeline worth $44 billion dedicated to data centers, accounting for 55% of total investments from GCC countries in this area.
This concentration demonstrates structural advantages such as fast execution, energy infrastructure availability, and close tie-ups with tech giants, enabling the UAE to achieve above-average economic returns compared to the region.
PwC projects that AI will contribute around $96 billion to the national GDP by 2031, equating to 13.6% of the GDP, nearly double the regional average of 8.2%.
Currently, around $9.9 billion is being invested across 15 data center projects that are under construction in the UAE.
The data center capacity is expected to rise from 414 megawatts to nearly 950 megawatts by 2028, representing a 130% increase.
This expansion is being led by Khazna Data Centers, the largest operator in the UAE market, investing $1.28 billion across five new facilities that will collectively contribute about 210 megawatts of operational capacity.
Growth is further accelerated by major AI infrastructure initiatives, notably the first phase of the Stargate AI complex managed by G42, which alone is set to add 200 megawatts by mid-2026.
In addition, there are pre-execution investments totaling $33.6 billion across 13 projects, predominantly featuring the comprehensive master plan for the Stargate project with a capacity of 5 gigawatts.
Major Investors
The UAE’s strategic ambitions extend beyond its borders; by 2025, it topped the global list of largest investors in Greenfield foreign direct investment projects in the information technology, telecommunications, and internet sectors, injecting $67.9 billion across 22 projects, ahead of the United States at $57 billion.
This solidifies the UAE’s status as a primary source of capital directed towards developing global AI infrastructure.
The GCC has established itself as a focal point for global investments in AI infrastructure, attracting over $40 billion in confirmed commitments from major cloud computing firms between 2023 and 2025.
Both the UAE and Saudi Arabia together account for more than 75% of the total existing data center capacity in the region, positioning the Gulf as a vital component in the deployment of global AI infrastructure leading up to 2030.
Microsoft leads regional commitments with investments of $17.3 billion, followed by Amazon Web Services (AWS) at $16.3 billion.
Google Cloud has established several operational zones in the region with multiple billions of dollars in investment, while Oracle has committed to investing $1.5 billion in its cloud operations in Saudi Arabia.
According to Emirates NBD, AI is set to emerge as a dominant force shaping economic growth by 2026, with tangible impacts coming from one of the largest infrastructure build-outs in modern economic history.
This clarity stands in stark contrast to the uncertainty surrounding most other economic variables, with global GDP growth forecasts ranging broadly from 2.4%, based on conservative World Bank estimates, to 3.1% according to more optimistic International Monetary Fund projections.
International Trade
The significant expansion of AI infrastructure is expected to generate extensive international trade, thereby enhancing the contribution of investment to GDP.
The semiconductor sector has shown remarkable momentum, with sales rising by 18.9% year-over-year during the first half of 2025, reaching $346 billion, setting full-year expectations for 2025 at $772 billion.
For 2026, projections estimate that this will reach $975 billion, according to the December 2025 update from the World Semiconductor Trade Statistics (WSTS).
AI-related chips are projected to see even stronger growth trajectories, with expected values between $110 billion and $130 billion in 2026, sustaining annual growth rates of between 28% and 30%.
In terms of equipment, these figures are expected to significantly increase, with data center infrastructure trade for AI—including AI-optimized servers, high-performance networking equipment, advanced cooling systems, and specialized power infrastructure—predicted to reach between $250 billion and $350 billion in 2026.
This surge in AI-driven hardware is reshaping global trade patterns, with the World Trade Organization reporting that AI-related goods accounted for 43% of global goods trade growth in the first half of 2025.
Despite constituting only 15% of the total trade value, this segment saw a 20% annual growth, contrasting sharply with less than 4% for goods not related to AI.
96
Billion dollars contribution of the sector to the UAE’s economy by 2031
571
Billion dollars spent on infrastructure globally
772
Billion dollars in semiconductor sector sales in 2025
55%
UAE’s share of GCC investments