The Middle East is moving fast in the AI data centre race, rapidly emerging as a global powerhouse for AI data centre growth. At the Datacloud Middle East market address, industry leaders shared how the region is building strong digital infrastructure. The message was clear. The Middle East is not just supporting cloud services anymore. It is building the base for AI and future technologies.
Tahir Gok, MENA lead at DC Hawk, led the session. He explained that computing power now drives global growth. In the past, coal and oil powered economies. Today, AI needs data centres, land, electricity and cooling systems. This makes infrastructure the new source of power. The Middle East holds an advantage because of its strong energy strategy and fast project execution.
Four key factors support this rapid Middle East growth. The region has affordable energy. Governments approve and build projects quickly. Sovereign funds invest early. Land and power planning happen at a national level. This approach allows campus-scale projects instead of small builds.
The numbers show strong momentum. Around 1.1 gigawatts of capacity is already live. Another 760 megawatts is under construction. More than 5.5 gigawatts sits in the near-term pipeline. Many projects already have land, power and operators ready. This reduces risk and speeds up delivery.
Demand remains strong. Over 260 megawatts was absorbed in the past year. Vacancy levels remain low at about 6 to 7 percent. Most new supply is pre-leased before launch. Nearly two-thirds of the upcoming capacity already has commitments. This shows real hyperscale demand, not short-term growth.
The UAE currently leads in live capacity. It holds just over half of the active market. Saudi Arabia follows and now drives much of the upcoming expansion. Other Gulf countries like Qatar, Kuwait and Oman add to regional scale. This wider spread reduces risk and builds a strong digital corridor.
AI adoption also pushes this expansion. The UAE ranks high globally in AI usage. Saudi Arabia and Qatar are also increasing adoption quickly. Governments support sovereign AI programs. These programs require local computing power. High-density racks and advanced cooling systems are becoming common features.
Power remains a key focus. AI workloads consume more electricity than traditional cloud services. Operators now plan energy access carefully. Reliable power and diversified energy sources will define future winners. Experts stressed that strong execution and clear timelines matter more than land speculation.
Comparisons with North America show possible future growth. North America released more than 6 gigawatts in 2024 and even more in 2025. The Middle East market is smaller today but growing quickly. Demand continues to localise rather than slow down.
The Datacloud address highlighted one clear shift. AI data centre infrastructure now stands at the centre of digital transformation in the region. With sovereign investment, strong energy planning and rising hyperscale demand, the Middle East is positioning itself as a global AI hub.
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