OpenAI, the US-based artificial intelligence leader, has announced the launch of data residency capabilities for its business customers in the United Arab Emirates. This move allows organisations to store their data locally when using ChatGPT Enterprise, ChatGPT Edu, or building applications on the company’s API Platform.
The new service is designed to help UAE-based enterprises, public sector institutions, and educational providers meet national compliance, governance, and operational requirements. This development comes as OpenAI reports tripling its user base in the UAE over the past year and recently announced a company-wide AI deployment with the global aviation group, Emirates.
Addressing a Critical Barrier for UAE Enterprises
A primary concern for many UAE organisations considering large-scale AI adoption has been the lack of in-country data residency when using global AI services. OpenAI’s new offering directly addresses this critical barrier by enabling enterprise customers to ensure data processed by its AI models remains within national borders.
This move taps into the rapidly growing demand for sovereign AI cloud services and deployment within the UAE, alleviating data sovereignty concerns and paving the way for wider AI integration across key sectors.
Local Storage and Security Measures
UAE customers will now have the option to store their data on Microsoft Azure data centres located within the UAE. OpenAI has also indicated it may establish its own local AI infrastructure as demand continues to grow.
The data residency feature includes robust security protocols, such as encryption for data at rest and in transit. By default, data from enterprise and API customers is not used to train OpenAI models, and organisations will have access to configurable data-retention policies to maintain control over their information.
Growing Adoption and High-Profile Users
The consumer adoption of ChatGPT in the UAE is strong, with approximately 60% of users aged 18-24 and half of those aged 25-34 using the service weekly.
Beyond individual users, several prominent UAE organisations are already deploying OpenAI technologies. These include the AI powerhouse G42 Group, sovereign wealth fund Mubadala, Abu Dhabi Investment Council, property developer Aldar, and Dubai-based fintech Tabby. Leading educational institutions such as Khalifa University, Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), NYU Abu Dhabi, and UAE University are also leveraging the platform.
Aligning with National AI Ambitions
This expansion aligns with the goals of UAE Vision 2031 to embed artificial intelligence across the nation. By providing local data residency, OpenAI is equipping institutions with the tools to adopt AI responsibly while adhering to local policy frameworks.
The move also complements the recent announcement of Stargate UAE, a 1 Gigawatt data centre cluster developed in partnership with the UAE Government, G42, Oracle, NVIDIA, Cisco, and SoftBank. This project is set to establish the UAE as a strategic hub for global AI development and innovation, with the first cluster expected to be operational in Q1 2026.
About OpenAI
OpenAI is an AI research and deployment company. Its mission is to ensure that artificial general intelligence (AGI) benefits all of humanity. The company is known for developing advanced AI models, including the GPT (Generative Pre-trained Transformer) series and DALL-E.
Source: Middle East AI News
