Middle East emerges as major hub for AI data centre growth – report

The Middle East is rapidly becoming a global hub for artificial intelligence (AI) data centre investment and innovation, according to a new report by Boston Consulting Group (BCG) titled AI Data Centres: An Opportunity in the Middle East. The report was launched on the sidelines of Mobile World Congress (MWC) Doha 2025.

BCG’s research reveals that the region’s competitive advantages, including up to 50 per cent lower leasing rates, low energy costs, scalable power ecosystems, and advanced cooling systems, are positioning it as a key global nexus for AI infrastructure.

Middle East leads data centre boom

The study forecasts that global data centre power demand will rise from 86GW in 2025 to 198GW by 2030, with the Middle East well placed to capture a growing share of this expansion.

The report highlights that the Middle East is not only participating in the global AI infrastructure race but is emerging as a core hub for AI data centre development. Its strategic location places it within a 2,000-mile radius of more than three billion people, allowing it to serve Europe, Asia, Africa and the Global South efficiently.

The region also benefits from expansive land availability, major digital infrastructure projects such as the planned Fibre in the Gulf (FIG) submarine cable, and rapid development pathways supported by government-led investment frameworks.

Thibault Werlé, Managing Director and Partner at BCG, said: “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.”

The report points to major national initiatives, including Saudi Arabia’s HUMAIN programme, which targets 1.9GW of AI data centre capacity, and the UAE’s 5GW AI campus in Abu Dhabi under the US-UAE AI Acceleration Partnership. Qatar’s efforts are supported by the Qatar Investment Authority’s US$3 billion partnership with Blue Owl Capital and participation in Anthropic’s US$13 billion funding round.

Harold Haddad, Managing Director and Senior Partner at BCG, said: “Qatar’s digital ambition is rapidly taking shape, driven by decisive leadership and a deep commitment to innovation. In line with Qatar National Vision 2030 and the Third National Development Strategy, the country is harnessing AI and emerging technologies to cement its role as a competitive force in the global digital economy.”

BCG recommends that Middle Eastern governments further streamline investment processes by integrating land, power, and connectivity frameworks and expanding financing models to attract hyperscalers and GPU-as-a-service providers.

Strengthening partnerships across research, manufacturing and education, it adds, will be key to maintaining long-term competitiveness in the global AI ecosystem.