UAE builds sovereign AI infrastructure as data control becomes strategic

RAS AL KHAIMAH, UAE (MNTV) — The United Arab Emirates is expanding its sovereign artificial intelligence infrastructure as companies increasingly prioritize where their AI systems operate, how data is governed and whether advanced computing capacity is available locally, according to Paul Dawalibi, chief executive of Innovation City in Ras Al Khaimah.

Innovation City, an AI-focused free zone that also hosts companies working in Web3, gaming, robotics and health technology, has added a data center to its digital infrastructure. 

The facility includes Siada, a sovereign AI center developed with IOPn to process computing workloads under UAE jurisdiction.

Dawalibi said businesses entering the free zone are increasingly moving beyond questions about how quickly they can establish operations. 

They are now asking where their AI models will run and which country’s laws will govern their training data and computing infrastructure.

He said the shift has elevated data sovereignty and AI governance from technical considerations to decisions made by company executives and boards. 

As AI systems move from experimentation to large-scale commercial use, organizations are becoming more concerned about controlling the infrastructure on which their models operate.

The availability of computing power is another major challenge. Dawalibi said access to advanced processors has become a greater constraint for AI companies than traditional advantages such as tax incentives, investment funding and talent.

He cited NVIDIA’s B200 graphics processing units as an example, saying demand has created worldwide shortages and extended waiting periods. 

According to him, technology hubs that can provide reliable access to high-performance computing will have an important competitive advantage in attracting AI companies.

Innovation City says Siada was designed specifically around sovereign computing requirements. The facility uses hardware-isolated tenants and an in-country data vault, with workloads processed inside the UAE and data subject to UAE jurisdiction.

Dawalibi argued that such safeguards must be incorporated into data center architecture from the beginning rather than added later to infrastructure designed for conventional cloud services.

He also said the wider environment surrounding a data center is increasingly important. According to Dawalibi, AI companies benefit when computing infrastructure is integrated with a broader ecosystem that combines businesses, regulation, talent and supporting services.

Regulatory certainty is another factor shaping investment decisions. Dawalibi said businesses can adapt to strict regulations when requirements are predictable, but changing or unclear rules create greater obstacles to investment.

He urged governments to treat AI computing capacity as strategic infrastructure comparable to transport networks, energy systems and telecommunications. 

In his view, countries that establish clear and durable rules for AI infrastructure will be better positioned to capture long-term economic benefits.

The Middle East has an advantage in this area because many of its technology and data center projects are being developed without the constraints of large amounts of older infrastructure, Dawalibi said.

Gulf countries can therefore design new facilities around the high computing and power requirements of modern AI systems instead of modifying older data centers. He also said tighter scrutiny of cross-border data transfers in the Gulf is increasing demand for computing capacity located within national borders.

The changing requirements are also affecting the region’s free zones. Dawalibi said these zones are evolving from places focused mainly on company registration and ownership arrangements into integrated platforms combining infrastructure, regulation and business ecosystems.

Innovation City says its Siada facility allows AI companies to access high-end computing without establishing separate infrastructure arrangements or moving their data outside the UAE.

The ecosystem has also attracted international companies. Dawalibi cited UK computer manufacturer Chillblast, which selected Innovation City as its entry point for expanding into the Gulf region.

Looking ahead, Dawalibi said control over AI infrastructure could become as economically significant as control over earlier transformative infrastructure such as railways, electricity networks and telecommunications.

He argued that countries and technology ecosystems that establish trusted sovereign computing capacity now could influence where future AI companies operate and how the global AI economy develops.