The Middle East is emerging as a major hub for data center AI growth – Report
The Middle East is fast becoming a Global Hub for Artificial Intelligence (AI) Data center investment and innovation, according to a new Boston Consulting Group (BCG) report titled AI data centers: An opportunity in the Middle East. This report was presented on the sidelines of the Mobile World Congress (MWC) DOHA 2025.
BCG’s research reveals that the region’s competitive edge, including 50 percent lower leases, lower energy costs, and advanced high-power systems, and advanced cooling systems, positions it as an AI infrastructure complex.
The Middle East is Leading the Data Center Boom
The study states that the demand for global data power will rise from 86gw in 2025 to 198GW in 20G3, with the Middle East well placed to capture this growing share.
The report highlights that the Middle East is not only participating in the global infrastructure race but is emerging as a Core Hub for AI Data Center Development. Its strategic location puts it within a 2,000-mile radius of more than three billion people, allowing it to operate in Europe, Asia, Africa and the entire world south.
The region also benefits from expanding land availability, large-scale digital infrastructure projects such as planned fiber in the planned break in the gulf (Fig) underground, and rapid development methods supported by government investment structures.
Thibault Werlé, Managing Director and Partner at BCG, said: “The Middle East continues to be a hotbed for AI.
The report points to major plans across the country, including Saudi Arabia’s program, which aims for a 1.9gw AI Data Campus in Abu Dhabi under the US-UAE AI AISHERRE Partnership. Qatar’s efforts are supported by the Qatar Investment Authority’s US $ 3 billion capital partnership with Blue Owl Capital and participation in Anthropic’s US $ 13 billion capital.
Harold Haddad, managing director and senior partner at BCG, said: “Qatar’s Digital Averalition takes shape, the deep commitment of Qatar National Developy, AI Technologies and enabling Technologies in the Goal Digital economy.”
BCG recommends that governments in the Middle East re-engineer investment practices by integrating land, energy, and telecommunications infrastructure and expand financial models to attract hypersterscalers 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 Global Ai Ecosystem.
