The Middle East is rapidly establishing itself as a key global destination for artificial intelligence data center investment and innovation, according to a new report by Boston Consulting Group (BCG) titled AI Data Centers: An Opportunity in the Middle East. As worldwide demand for AI infrastructure continues to surge, data center power requirements are expected to rise sharply from 86 gigawatts in 2025 to nearly 198 gigawatts by 2030. Against this backdrop, BCG highlights the Middle East’s strong competitive position in delivering scalable and cost-efficient AI computing capacity.
The report notes that the region is no longer a passive participant in the global AI infrastructure race. Instead, it is quickly becoming a critical hub for next-generation data center development. This progress is driven by several structural advantages, including the Middle East’s strategic location. Situated within a 2,000-mile radius of more than three billion people, the region is well placed to serve Europe, Asia, Africa, and the wider Global South, particularly for large-scale AI inferencing that does not require ultra-low latency.
Cost competitiveness further strengthens the region’s appeal. Lower leasing rates—often up to 50% cheaper than in other major markets—combined with affordable power tariffs and the adoption of advanced cooling technologies, significantly reduce overall operating and ownership costs for data center operators.
Countries such as the UAE and Saudi Arabia are also accelerating the development of new facilities by streamlining approvals, creating dedicated investment teams, and developing specialised technology clusters. Examples include innovation-focused zones such as Masdar City’s Stargate Campus. This momentum is supported by the availability of large land parcels, expanding power infrastructure, and major digital connectivity initiatives, including the planned Fibre in the Gulf submarine cable project with an expected capacity of around 720 terabits per second.
Speaking on the sidelines of Mobile World Congress Doha, Harold Haddad, Managing Director and Senior Partner at BCG, highlighted Qatar’s rapid digital progress. He noted that the country’s ambitions are being realised through strong leadership and a clear commitment to innovation. Aligned with Qatar National Vision 2030 and the Third National Development Strategy, Qatar is leveraging AI and emerging technologies to strengthen its position in the global digital economy. Hosting MWC Doha, he added, reflects both this momentum and Qatar’s growing influence as a regional technology hub.
Thibault Werlé, Managing Director and Partner at BCG, echoed this view, describing the Middle East as being at a turning point in its transformation into a global AI infrastructure centre. He emphasised that strategic investments, forward-looking digital policies, and ambitious national visions across Qatar, the UAE, and Saudi Arabia are laying the groundwork for scalable, next-generation AI computing. Qatar’s initiatives showcased at MWC Doha, he said, demonstrate the region’s broader commitment to building a globally competitive AI ecosystem capable of serving multiple continents.
Qatar, in particular, is steadily strengthening its role in the global AI and technology landscape through targeted investments led by the Qatar Investment Authority (QIA). These include the launch of a $3 billion global platform with Blue Owl Capital to accelerate AI and cloud infrastructure development worldwide, as well as QIA’s participation in a major funding round for Anthropic. Together, these moves underline Qatar’s long-term commitment to advancing its digital capabilities and support the objectives set out in Qatar Digital Vision 2030.
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