Sharjah Inks Strategic MoU with Chinese Tech Firms to Boost Data Center Hub Ambitions

Sharjah Inks Strategic MoU with Chinese Tech Firms to Boost Data Center Hub Ambitions

January 29, 2026

The United Arab Emirates' emirate of Sharjah has taken a significant step in its bid to become a regional digital infrastructure hub, signing a strategic agreement with two Chinese technology companies. This move underscores the intensifying competition within the Middle East to attract capital and expertise for next-generation data centers, which are critical for supporting artificial intelligence, cloud services, and the region's broader economic diversification plans.

The Sharjah Communications Technology Authority (SCTA) announced this week that it has entered into a tripartite Memorandum of Understanding (MoU) with Beijing-based AI infrastructure and cloud service provider DataCanvas International, also known as Nine Chapters Cloud, and its partner AI Caravan. The agreement, as detailed in a press release, outlines a collaborative framework to "explore opportunities for establishing and operating data centers and advancing technological infrastructure projects" within the emirate.

While specific project details, timelines, and investment figures were not disclosed, the MoU signals a clear intent to develop Sharjah's digital backbone. The SCTA stated the partnership "aspires to enhance Sharjah's infrastructure, support its transition to a knowledge-based economy, attract premium investments in artificial intelligence, nurture local talent, and create a cohesive system aligned with global best practices."

Sharjah, the UAE's third-most populous city located north of Dubai, is building upon existing data center activity. The market already hosts a recently launched 1-megawatt immersion-cooled facility by XDS Data Centres and has seen development plans from major regional player Khazna. DataCanvas brings experience from previous collaborations with international firms like HPE and Telkom Indonesia's NeutraDC, suggesting the potential for advanced, scalable deployments in Sharjah.

This agreement is emblematic of a wider trend in the Gulf Cooperation Council (GCC) region, where nations are aggressively expanding data center capacity. Neighboring Saudi Arabia, for instance, has announced targets to reach 1 gigawatt of capacity by 2030. For Sharjah, attracting a specialized Chinese cloud and AI player like DataCanvas could provide a strategic edge in the burgeoning AI compute segment, positioning the emirate not just as a connectivity gateway but as a center for advanced technological development.

Source: datacenterdynamics