We study the interplay of disorder localization and strong local interactions within the Anderson-Hubbard model. Taking into account local Mott-Hubbard physics and static screening of the disorder potential, the system is mapped onto an effective single-particle Anderson model, which is studied within the self-consistent theory of electron localization. For fermions, we find rich nonmonotonic behavior of the localization length ξ, particularly in two-dimensional systems, including an interaction-induced exponential enhancement of ξ for small and intermediate disorders and a strong reduction of ξ due to hopping suppression by strong interactions. In three dimensions, we identify for half filling a Mott-Hubbard-assisted Anderson localized phase existing between the metallic and the Mott-Hubbardgapped phases. For small U there is re-entrant behavior from the Anderson localized phase to the metallic phase. For bosons, the unrestricted particle occupation number per lattice site yields a monotonic enhancement of ξ as a function of decreasing interaction, which we assume to persist until the superfluid Bose- Einstein condensate phase is entered. Besides, we study cold atomic gases expanding, by a diffusion process, in a weak random potential. We show that the density-density correlation function of the expanding gas is strongly affected by disorder and we estimate the typical size of a speckle spot, i.e., a region of enhanced or depleted density. Both a Fermi gas and a Bose-Einstein condensate (in a mean-field approach) are considered
