Innovation City launches first sovereign AI data centre

Innovation City and Siada have launched a sovereign AI data centre in Ras Al Khaimah, which they describe as the first facility of its kind in the Middle East.

The site operates within Innovation City, a UAE free zone focused on artificial intelligence and other technology sectors. Companies based there can access Nvidia B200 graphics processing units by the hour, reserve them for longer periods or deploy them in managed on-premises environments.

The launch comes as businesses and regulators across the Gulf pay closer attention to where data is stored and processed. All computing at the facility takes place within the UAE, and all data remains under UAE jurisdiction.

The model is aimed at companies handling sensitive workloads in sectors including financial technology, digital health and government-related services, where data residency rules can shape how and where systems are built and run. The facility is intended to address concerns about cross-border data flows and reliance on overseas cloud infrastructure.

Access to advanced AI chips has also become a competitive issue for technology companies, as demand for processing power has outpaced supply. Nvidia B200 units have been difficult to obtain globally, with customers facing long waits for allocation.

Innovation City said the new facility is part of its effort to stand out from other free zones in the region by combining licensing with in-country computing infrastructure. Based in Ras Al Khaimah, the free zone targets founders and businesses working in artificial intelligence, gaming, robotics, Web3 and health technology.

Siada, an enterprise of IOPn, is described as a sovereign AI compute cloud built around single-jurisdiction control and isolated infrastructure. Alongside on-demand access, it offers dedicated environments for customers that want models to run in separate systems from the outset.

Data control

Sovereignty has become more prominent as governments try to balance AI investment with legal and security requirements. For companies training models or processing regulated information, local control over infrastructure can be as important as access to computing hardware.

Paul Dawalibi, Chief Executive Officer of Innovation City, said the project reflects the free zone's strategy for attracting technology companies.

"This partnership with Siada proves what makes Innovation City different. We are not another free zone chasing the AI wave. We are leading it by deeply understanding the exact pain points of technology and AI companies - and solving them head-on with sovereign compute infrastructure that no one else delivers at this scale. If you are an AI company serious about building the future, this is the only ecosystem engineered to help you succeed at speed."

His comments reflect how free zones in the Gulf are trying to move beyond tax and ownership incentives by offering infrastructure tailored to specific technology sectors. In the AI market, that can mean local compute, access arrangements for scarce chips and operating models designed to meet national data rules.

Mojtaba Asadian, Chief Executive Officer of IOPn, framed the launch as part of a wider debate over who controls digital systems and the information processed through them.

"Sovereignty isn't just about where data sits - it's about who gets to decide. IOPn was built from the ground up so that people, businesses, and governments retain genuine agency over their own data, identity, and intelligence - the right to choose their infrastructure, not have it chosen for them. Building Siada is not just a regional milestone. It is a blueprint for how sovereign AI should be built everywhere - infrastructure that hands control back to the people and institutions it serves, in step with the UAE's vision for the future of data safeguarding."

Regional push

Ras Al Khaimah has been working to broaden its profile as a business destination alongside its established industrial and tourism sectors. The emirate says its economy is diversified and supports more than 50,000 companies, while promoting a business environment that allows full foreign ownership in designated areas.

For Innovation City, the data centre adds a physical infrastructure element to that pitch. Rather than relying solely on third-party cloud providers outside the country, companies in the zone can now run AI workloads on systems housed within the emirate.

The move also reflects a broader regional effort to build domestic AI infrastructure rather than import computing services from abroad. As demand for AI training and inference rises, the location of servers, chips and stored data is becoming increasingly material to investment decisions by start-ups and larger enterprises alike.

Founders and enterprises in the free zone can already use the facility, with options ranging from short-term access to longer-term reserved capacity.