Drought is the most severe problem for agricultural production, and the intensity of this problem is increasing in most cultivated areas around the world. Hence improving water productivity is the primary purpose of sustainable agriculture. This study aimed to use cloud IoT solutions to control a modern subsurface irrigation system for improving irrigation management of date palms in arid regions. To achieve this goal, we designed, constructed, and validated the performance of a fully automated controlled subsurface irrigation system (CSIS) to monitor and control the irrigation water amount remotely. The CSIS is based on an autonomous sensors network to instantly collect the climatic parameters and volumetric soil water content in the study area. Therefore, we employed the ThingSpeak cloud platform to host sensor readings, perform algorithmic analysis, instant visualize the live data, create event-based alerts to the user, and send instructions to the IoT devices. The validation of the CSIS proved that automatically irrigating date palm trees controlled by the sensor-based irrigation scheduling (S-BIS) is more efficient than the time-based irrigation scheduling (T-BIS). The S-BIS provided the date palm with the optimum irrigation water amount at the opportune time directly in the functional root zone. Generally, the S-BIS and T-BIS of CSIS reduced the applied irrigation water amount by 64.1% and 61.2%, respectively, compared with traditional surface irrigation (TSI). The total annual amount of applied irrigation water for CSIS with S-BIS method, CSIS with T-BIS method, and TSI was 21.04, 22.76, and 58.71 m3 palm−1, respectively. The water productivity at the CSIS with S-BIS (1.783 kg m−3) and T-BIS (1.44 kg m−3) methods was significantly higher compared to the TSI (0.531 kg m−3). The CSIS with the S-BIS method kept the volumetric water content in the functional root zone next to the field capacity compared to the T-BIS method. The deigned CSIS with the S-BIS method characterized by the positive impact on the irrigation water management and enhancement on fruit yield of the date palm is quite proper for date palm irrigation in the arid regions.