Key Highlights:
- OpenAI now supports full data residency in the UAE, allowing enterprises to store ChatGPT Enterprise, Edu, and API data locally for better compliance.
- Customer data will be stored in Microsoft Azure UAE datacenters, encrypted in transit and at rest, with enterprise/API data excluded from training.
- UAE ChatGPT usage has tripled in a year, making the country a major market as enterprises like Emirates Group and top institutions adopt OpenAI tools.
OpenAI has been expanding its enterprise footprint on a global scale for some time now, and this time it is addressing one of the biggest challenges related to corporate AI deployment in the UAE. Now, OpenAI has announced full data residency support for UAE customers. In other words, organizations can store their ChatGPT Enterprise, ChatGPT Edu and API platform data inside the country.
This marks a major shift in how OpenAI is serving in regulated markets. In the UAE, where demand for sovereign infrastructure has skyrocketed over the last one and a half years, this decision can boost AI adoption across government, aviation, finance, education and healthcare.
For those unaware, enterprises in the UAE mostly relied on OpenAI’s global infrastructure, which eventually triggered concerns regarding regulatory compliance, data governance, and cybersecurity. For this very reason the government and private sector have been pushing for local processing capabilities to meet national frameworks and sector specific rules.
OpenAI’s data residency support in the UAE
As part of the newly announced data residency support, OpenAI will store customer data inside Microsoft Azure data centers in the UAE. However, there will also be the option to expand via OpenAI’s own local infrastructure as the demand surges down the line. It is worth noting that the data is encrypted in transit and at rest and enterprise/API data will be excluded from AI training by default.
That’s not all; businesses can also customize how long their data can be retained and other requirements for regulatory industries. For those uninitiated, the same enterprise data setup is already available in the US and EU. OpenAI says that its user base in the UAE has tripled over the past year which is largely driven by young customers. Apparently 60% of users aged 18 to 24 use ChatGPT on a weekly basis. While the use of AI assistants is also growing among users aged 25 to 34.
Because of that and national-level AI initiatives, the UAE has become one of the most important international markets from an AI company’s point of view. OpenAI also recently confirmed its first public UAE customer, Emirates Group, plans a full organization-wide roll out of its tools. Many major organizations are already deploying or testing OpenAI technology. This includes G42, Mubadala, Abu Dhabi Investment Council, Aldar, Tabi, Khalifa University, Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), NYU Abu Dhabi and UAE University.
Also read: ChatGPT Gets ‘Shopping Research’ Tool That Creates Personalized Buyer Guides
Microsoft’s massive investment in the UAE’s AI future
In addition to OpenAI, the UAE has also been getting support from Microsoft to help the nation achieve its AI goals by recently announcing a staggering $15.2 billion investment through 2029. Partnering closely with G42, this initiative has already utilized over $7.3 billion since 2023 for equity stakes and cloud datacenters. The strategy allocates another $7.9 billion from 2026 for expanding infrastructure and deploying advanced NVIDIA chips, secured via special export licenses.
Furthermore, Microsoft and G42 have established the Responsible AI Future Foundation to ensure ethical standards. This comprehensive approach underscores Microsoft’s ambition to position the UAE as a pivotal, trusted global hub for responsible artificial intelligence innovation outside the United States.
