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Alibaba Cloud opens second data centre in Dubai to expand AI and cloud services

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Alibaba Cloud, the digital technology and artificial intelligence arm of Chinese e-commerce giant Alibaba Group, has launched its second data centre in Dubai, nine years after opening its first in the region. The expansion reflects Alibaba’s ambition to strengthen its global cloud computing footprint and support rising demand across the Middle East.

The launch is part of Alibaba’s broader commitment to invest 380 billion yuan ($53 billion) over three years in cloud infrastructure and AI capabilities. Although the company did not disclose specific financial details for the Dubai facility, it said the move aims to empower both public and private sectors in adopting artificial intelligence technologies more rapidly.

“The Middle East’s advantageous position in fast-tracking AI adoption and its collaborative ecosystem are crucial enablers for companies to thrive,” said Eric Wan, vice president of Alibaba Cloud International and regional general manager of Alibaba Cloud Intelligence.

The United Arab Emirates (UAE) has emerged as a regional leader in AI development, investing billions to diversify its economy beyond oil. In May, the UAE announced plans to build the largest AI campus outside the United States through partnerships with Nvidia, OpenAI, and other global tech firms.

At the GITEX Global technology exhibition in Dubai, Alibaba Cloud also revealed new partnerships with companies such as Abu Dhabi-backed Wio Bank, aiming to use its local data infrastructure to accelerate AI and fintech deployment across the region.

U.S. approves multi-billion-dollar Nvidia chip exports to UAE, Bloomberg reports

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The U.S. government has approved several billion dollars’ worth of Nvidia chip exports to the United Arab Emirates, according to Bloomberg News. The export licenses were issued by the Commerce Department’s Bureau of Industry and Security as part of a bilateral artificial intelligence agreement reached in May.

The deal will enable the UAE to build large-scale data centers essential for developing and training advanced AI models, deepening technological cooperation between the two countries. In return, the UAE has committed to making a reciprocal investment in the U.S., the report said.

An official from the Commerce Department told Bloomberg the agency is “fully committed to the transformational U.S.–UAE AI partnership deal.” Neither Nvidia nor the White House commented directly on the report, and UAE representatives could not be reached.

The export agreement is expected to allow the Emirates to import up to 500,000 of Nvidia’s high-performance AI chips annually starting in 2025, under a framework that could extend through 2030, as Reuters reported earlier this year.

The approval aligns with President Donald Trump’s renewed Gulf outreach, which in May yielded $600 billion in commitments from Saudi Arabia, including chip deals with Nvidia, AMD, and Qualcomm. The move strengthens Washington’s push to build regional AI alliances amid intensifying global competition for computing power.

Nvidia and Abu Dhabi’s TII launch first AI & robotics research hub in Middle East

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Nvidia and Abu Dhabi’s Technology Innovation Institute (TII) have unveiled a joint artificial intelligence and robotics laboratory in the United Arab Emirates, the first Nvidia AI Technology Center in the Middle East. The hub will combine Nvidia’s cutting-edge computing power with TII’s applied research to accelerate work on advanced AI models and robotics platforms.

Najwa Aaraj, CEO of TII, said the lab will leverage Nvidia’s new Thor chip, designed for next-generation robotic systems. The collaboration will support TII’s work on humanoids, quadruped robots, and robotic arms, with both existing staff and new hires contributing to the effort.

TII is the applied research arm of Abu Dhabi’s Advanced Technology Research Council, which drives the UAE’s long-term strategy to become a global AI leader. The Gulf nation has poured billions into AI initiatives, including plans for one of the world’s largest data center hubs in Abu Dhabi, built with U.S. technology and Nvidia’s most advanced chips. That project, announced during President Donald Trump’s May visit, remains pending amid U.S. security concerns over the UAE’s ties with China.

Aaraj noted that TII has been using Nvidia’s GPUs to train large-scale language models for some time, with discussions on the joint lab beginning about a year ago. The new hub will host researchers from both organizations and expand staff as projects scale.

The initiative underscores both Nvidia’s push into global AI partnerships and the UAE’s ambition to position itself at the forefront of artificial intelligence and robotics innovation.