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UAE strengthens smart cities with data centre investments

Gulf Today

|

January 25, 2026

The UAE continues to consolidate its advanced model for building smart cities, underpinned by wide-ranging strategic investments, most notably in data centres, which form the operational backbone of smart urban systems and the knowledgeand innovation-based digital economy.

UAE strengthens smart cities with data centre investments

With the rapid expansion in the use of artificial intelligence, the Internet of Things and digital government services, data has become the main driver of urban life, while data centres have evolved into the infrastructure through which smart cities are managed in real time.

Amel Chadli, President of the Gulf Cluster at Schneider Electric, said that data centres now play the role of the brain managing smart cities, processing vast volumes of data instantaneously that can reach several terabytes in advanced environments.

She noted that this capability has become essential for the UAE, as modern urban systems, from transport and government services to energy and safety, rely on interconnected digital infrastructure powered by artificial intelligence and the Internet of Things.

She explained that projects such as Masdar City, the Dubai Urban Plan 2040 and the Digital Government Strategy 2025 demonstrate that the UAE is building an urban model based on data-driven decision-making to improve quality of life.

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