OpenAI offers UAE data residency for enterprise customers

Move supports compliance and UAE sovereignty goals as AI adoption accelerates

#UAE #GenAI - US artificial intelligence company OpenAI has launched data residency capabilities for business customers in the United Arab Emirates, enabling organisations to store data locally when using ChatGPT Enterprise, ChatGPT Edu or building on the company’s API Platform. The AI leader’s new service capability will allow UAE-based enterprises, public-sector institutions and education providers to meet national compliance, governance and operational requirements whilst scaling AI adoption. OpenAI has tripled its UAE user base over the past year and made its first public UAE customer announcement last week, revealing plans for company-wide AI deployment for global aviation group Emirates.

SO WHAT? - OpenAI’s data residency service offer addresses a critical barrier to enterprise AI adoption in the UAE by allowing enterprise customers to store data being processed by AI within national borders. Demand for sovereign AI cloud services and deployment is growing rapidly in the UAE and a primary concern among enterprises has been the lack of in-country data residency when using global AI services such as OpenAI’s ChatGPT. The new OpenAI cloud services provided via data centres in the UAE will alleviate that concern.

Here are some key points about the OpenAI announcement:

• OpenAI has announced data residency options for business customers in the United Arab Emirates, enabling organisations to store data within the Emirates.

• UAE customers will have the option to store their data on Microsoft Azure data centres in the UAE when using ChatGPT Enterprise, ChatGPT Edu or building on the company’s API Platform. OpenAI may also provide services via its own local AI infrastructure as demand grows.

• UAE organisations already deploying OpenAI technologies include AI powerhouse G42 Group, Abu Dhabi sovereign wealth fund Mubadala, Abu Dhabi Investment Council, property developer Aldar, and Dubai fintech Tabby, plus education institutions Khalifa University, Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), NYU Abu Dhabi and UAE University

• The data residency feature includes encryption of data at rest and in transit, with enterprise and API customer data not used to train OpenAI models by default, alongside configurable data-retention policies.

• The company has tripled its UAE user base over the past year, with approximately 60 per cent of users aged 18-24 and half of those aged 25-34 using ChatGPT weekly, demonstrating strong consumer adoption.

• The expansion aligns with UAE Vision 2031 goals to embed artificial intelligence across the nation, providing institutions with tools to adopt AI responsibly whilst meeting local policy frameworks and operational needs.

• Earlier this year OpenAI announced Stargate UAE, a new 1 Gigawatt data centre cluster developed in partnership with the UAE Government, G42, Oracle, NVIDIA, Cisco and SoftBank to support national AI capability and infrastructure requirements.

ZOOM OUT - In May OpenAI announced Stargate UAE, a 1 Gigawatt AI compute hub being developed in partnership with G42, Cisco, NVIDIA, Oracle and SoftBank Group. The hub is the first international deployment of the Stargate Project, a $500 billion American AI infrastructure initiative, and also forms part of the 5-gigawatt UAE-U.S. AI Campus announced during President Donald Trump’s UAE visit earlier this year. The first 200-megawatt Stargate UAE AI cluster is expected to become operational in Q1 2026, establishing the UAE as a strategic hub for global AI development, services and innovation.

[Written and edited with the assistance of AI]

Read more about OpenAI in the Middle East:

• Emirates partners with OpenAI for enterprise AI (Middle East AI News)

• UAE AI Office launches AI leadership guide (Middle East AI News)

• Sam Altman receives MBZUAI’s first honorary doctorate (Middle East AI News)

• Tech leaders unite to build Stargate UAE AI hub (Middle East AI News)

• Sam Altman’s Middle East tour (Middle East AI News)