DUBAI: Once fueled by oil, the UAE is now betting on bits and bytes.

The Gulf state is rapidly building hyperscale data centers, positioning itself as the Middle East’s central node for artificial-intelligence infrastructure. Backed by billions in sovereign wealth and global partnerships, the country is trading petroleum pipelines for digital ones.

In August, Texas-based TRG Datacenters ranked the country among the world’s top three AI superpowers, alongside the US and Saudi Arabia.

While this infrastructure promises growth, it also raises environmental and geopolitical concerns around energy, water and data sovereignty in a region already strained by climate extremes.

Backed by billions: sovereign capital fueling hyperscale expansion