Global data center power needs are projected to grow from 86GW in 2025 to 198GW by 2030, the Middle East’s unique positioning offers a compelling opportunity to meet this surging demand.
The Middle East is rapidly establishing itself as a critical nexus for artificial intelligence infrastructure investment, poised to capture a significant share of the world’s booming data center market as global AI demand accelerates, according to a new report from Boston Consulting Group.
BCG’s “AI Data Centers: An Opportunity in the Middle East” report reveals that the region is fast emerging as a major center of AI data center development, driven by distinctive structural advantages.
The consultancy found that with global data center power needs projected to grow from 86GW in 2025 to 198GW by 2030, the Middle East’s unique positioning offers a compelling opportunity to meet this surging demand.
The region’s competitive edge stems from multiple factors. Its strategic geography places it within a 2,000-mile radius of over 3 billion people, enabling it to serve Europe, Asia, Africa, and the Global South with non-latency-sensitive AI inferencing at scale.
Cost advantages are equally compelling, with the region offering up to 50 percent lower leasing rates and low power tariffs. Countries such as the UAE and Saudi Arabia are accelerating time-to-market through fast-track development processes and special economic zone clusters, while planned submarine cable infrastructure will further strengthen connectivity.
National initiatives across the Gulf Cooperation Council are reinforcing this momentum. Saudi Arabia has launched HUMAIN with a targeted 1.9GW AI data centre capacity and partnerships with major technology firms, including NVIDIA, AMD, and AWS, to develop multi-hundred-megawatt AI campuses.
The UAE is advancing a 5GW AI campus in Abu Dhabi, supported by Microsoft’s $15.2 billion investment. Qatar is strengthening its position through a $3 billion global platform with Blue Owl Capital and participation in a $13 billion funding round for Anthropic.
Thibault Werlé, Managing Director and Partner at BCG, emphasized the transformative potential: “The Middle East is undergoing a pivotal transformation as it positions itself to become a global hub for AI infrastructure. With strategic investments, progressive digital policies, and ambitious national visions across Qatar, the UAE, and Saudi Arabia, the region is building the foundation for scalable, next-generation AI compute.”
To fully capitalize on this opportunity, BCG recommends that governments create streamlined investment packages integrating land, power, water, and connectivity within clear timeframes. Expanding diverse financing models and strengthening partnerships across chipset suppliers and research institutions will be essential. Developing world-class digital talent remains critical for long-term competitiveness.
Harold Haddad, Managing Director and Senior Partner at BCG, noted: “Qatar’s digital ambition is rapidly taking shape, driven by decisive leadership and a deep commitment to innovation. Hosting Mobile World Congress Doha reflects this momentum and Qatar’s growing influence as a pivotal hub for technological advancement.”
As artificial intelligence reshapes global economic landscapes, the Middle East’s strategic geography, favourable economics, and ambitious digital agendas position the region uniquely to emerge as a powerhouse for AI data centre capacity—particularly for regions such as the Global South requiring scalable and cost-efficient compute infrastructure.
