Oracle expands Gulf data centres, keeps new locations secret over security fears

Summary

• Oracle is adding data centres in the UAE and Saudi Arabia, an executive told The National.
• The company is withholding their locations, citing geopolitical risk and fear of hostile actors.
• Sovereignty now dominates client talks, with customers asking who controls the kill switch.

The latest

Oracle has added several data centres across the UAE and Saudi Arabia over the past six months and will open more within the next six, executive vice president for applications in Europe, the Middle East and Africa Cormac Watters told The National at Oracle AI World in Las Vegas. He said demand is huge, and that the company is withholding the sites' locations because of the geopolitical situation.

Details

• The footprint: Oracle operates cloud regions in Dubai and Abu Dhabi, and in Jeddah and Riyadh, according to The National, and had already announced plans for a region at Saudi Arabia's Neom megaproject. Watters said a couple of sites were added in the past six months, with more due in the coming six.
• Why the secrecy: Watters said Oracle is reluctant to say where all its facilities are, citing the geopolitical situation and the risk that "bad actors" could identify them. He declined to name the new sites, the number planned, or the investment behind them.
• The security backdrop: Gulf states including Saudi Arabia and the UAE faced Iranian attacks on civilian infrastructure during the regional war that began on February 28, The National reported. The two Arab world's largest economies are now recovering, though Saudi Arabia still faces attacks by Yemen's Houthi rebels.
• Sovereignty first: Watters said sovereignty is now the opening topic in every client conversation, centred on where data is stored and who holds the kill switch. Sovereign AI refers to domestic production and deployment of AI using local infrastructure, data, models and talent.
• Digital embassies: Watters said the physical threat to data centres has introduced a concept clients call a digital embassy: a sovereign cloud installed in one city that can be physically lifted and moved to another country while retaining its sovereign status, mirroring how an embassy works.
• The regulatory catch: Watters said the option is workable now, particularly for providers with a global footprint, but regulated entities such as banks would need approvals first. He called the mix of digital embassies and sovereignty very complex, and did not set a timeline for broader rollout.
• Buying behaviour: Watters said customers are splitting their spending: routine purchases are being delayed, while strategic transformation projects are being pushed ahead. He said Oracle is working closely with clients to clear the hurdle.
• Beyond the big two: The Middle East is Oracle's fastest-growing market within its wider EMEA region, Watters said, with further opportunities in Qatar and Kuwait. He said Syria is becoming interesting as it opens its economy, but Oracle may approach it through a distributor partnership rather than directly.
• The money behind it: The UAE, Saudi Arabia and Qatar announced AI investment plans last year exceeding 5% of GDP, worth roughly $120 billion, according to the International Monetary Fund. Watters said Middle East and UAE organisations are probably adopting AI faster than anyone else.

Background

Sovereign AI has become a central demand across the Gulf, where governments want AI infrastructure, data and models hosted and governed domestically rather than through foreign-controlled platforms. Oracle is one of several global cloud providers building regional capacity to meet that requirement.

Between the lines

Watters framed the region's speed as a mindset advantage: no 50-year-old legacy systems to defend, and constant exposure to change. But his own account points to a harder driver — a client base that has watched civilian infrastructure come under attack and now asks about physical survivability. The digital embassy pitch sells relocation insurance, which is why banks and their regulators are the bottleneck.

What's next

Watch for Oracle naming or confirming its Neom cloud region, any disclosure of the new Gulf sites, and whether financial regulators approve cross-border digital embassy arrangements for banks.

Source: The National, International Monetary Fund