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Arab News
01-05-2025
- Business
- Arab News
Energy and infrastructure are key to AI's future
At the heart of the artificial intelligence surge is infrastructure. Rapid advances in AI are driving a record-breaking demand for data centers. But a shortage of reliable power is becoming a major bottleneck, sparking a global wave of investment in both energy and digital infrastructure. Today, AI is increasingly seen not as a passing trend, but as a new essential utility — just like electricity or the internet. Private markets are riding this wave of optimism. AI-related deals now make up about 3 percent of all transactions, but a hefty 15 percent of total capital invested. At the same time, venture capitalists are pouring money into AI application platforms at a dizzying pace, showing early signs of a possible investment bubble. Funding for AI platforms has soared to 10 times previous levels, with valuations running five times higher than typical venture capital investments. For these AI companies, the median funding multiple is about 25 times revenue — and for the top performers, it is as high as 40 times. These eye-watering figures reflect strong expectations for future growth and profits. Large technology firms have also become ever more intertwined with the global economy, now representing about $15 trillion, or about 15 percent of global gross domestic product. If momentum continues, this figure could grow to $35 trillion — or even $50 trillion if AI's influence continues to expand, accounting for about 35 percent of global GDP. Supporting all this growth requires massive infrastructure expansion. During the original internet boom, the US built about 2 gigawatts of data center capacity over 16 years. In the cloud computing era, this rose to 6 gigawatts. While the opportunities in AI are huge, building the power and infrastructure needed to support it will be one of the world's greatest challenges. Lina Tayara Today, thanks to AI, the US is adding between 2 to 7 gigawatts of capacity every year — half of it driven by hyperscale companies. The Middle East, meanwhile, is perfectly placed to capitalize on the AI era, thanks to its affordable, abundant energy. Global investment firm KKR recently announced a $5 billion investment in Gulf Data Hub, a UAE-based data center company, with 300 megawatts of new capacity aimed at boosting AI growth across the GCC — including a major expansion in Saudi Arabia, unveiled at LEAP. AI's hunger for computing power is also fueling massive investments in graphics processing units. Over the past six to eight years, the size of processor clusters used for AI model training has exploded by 20 to 40 times, leading to the rise of enormous 'giga campuses' with up to 1 million processors. But with all this expansion, two big questions loom. Can the flow of capital keep up? And can infrastructure projects scale fast enough? KKR points to two global megatrends that could shape the future: An estimated $100 trillion needed for infrastructure investment over the next 15 years, and another $200 trillion required to achieve global net-zero emissions by 2050. The bottom line: While the opportunities in AI are huge, building the power and infrastructure needed to support it will be one of the world's greatest challenges. • Lina Tayara is a consultant in the digital infrastructure industry driving business development, market research and thought leadership on her platform Let's Talk Tech.
Khaleej Times
22-04-2025
- Business
- Khaleej Times
Dubai: Du to build Dh2 billion data centre with Microsoft, Sheikh Hamdan says
Sheikh Hamdan bin Mohammed Al Maktoum, Dubai Crown Prince, has said that du has announced a Dh2 billion project with Microsoft. The telecom operator will build a "massive, high-performance data centre", the UAE leader said. Announced at during 'AI week' in Dubai, he said that this new investment will ensure the "UAE remains at the forefront of adopting and supporting the latest technologies, innovations, and digital services". Earlier in January, Dubai-founded Gulf Data Hub said it will invest $5 billion (approximately Dh18.365 billion) towards solidifying the former's market leading position with global private equity firm KKR & Co. Sheikh Hamdan then said, "This landmark investment, the first of its kind in the region, will expand data centre capacity in the UAE and the Middle East."
Yahoo
13-03-2025
- Business
- Yahoo
GCC Data Center Market Investment Analysis Report 2025-2030: Saudi Arabia and UAE Drive GCC Data Center Boom with $9.49 Billion Market by 2030
The GCC data center market is set to grow from $3.48 billion in 2024 to $9.49 billion by 2030, driven by cloud computing, AI demand, and Vision 2030 initiatives in Saudi Arabia and UAE. Leading operators, including Equinix, Gulf Data Hub, and Khazna Data Centers, alongside Google, AWS, Microsoft, and Oracle, are investing in hyperscale and colocation facilities. New entrants like Agility and DataVolt are expanding market competition. With LEAP Riyadh 2025 fostering innovation and AI-optimized data centers launching across the region, GCC is cementing its status as a top digital hub. GCC Data Center Market Dublin, March 13, 2025 (GLOBE NEWSWIRE) -- The "GCC Data Center Market - Investment Analysis & Growth Opportunities 2025-2030" report has been added to GCC Data Center Market was valued at USD 3.48 Billion in 2024, and is projected to reach USD 9.49 Billion by 2030, rising at a CAGR of 18.2%. The GCC data center market features several major data center operators, such as Equinix, Gulf Data Hub, Khazna Data Centers, Edgnex Data Centres by DAMAC, Batelco, Ooredoo, Mobily, Moro Hub, and Quantum Switch Tamasuk, which have established facilities and plan further investments. In addition, the GCC data center market witnesses new announcements and investments from emerging operators, which include Agility, DataVolt, Desert Dragon Data Centers, Pure Data Centres, Sahayeb Datacenters, and others. The GCC data center market is also seeing investments from global cloud giants such as Google, Amazon Web Services, Microsoft, Oracle, Alibaba, and Huawei who are developing their own dedicated cloud regions and data centers throughout the country. They have their cloud regions spread across Dubai, Abu Dhabi, Riyadh, Jeddah, Dammam, Doha, and Manama. In October 2024, Khazna Data Centers announced its plan to develop a new AI-optimized data center facility in Ajman, UAE. The data center is to feature 20 data halls, with the first phase likely to go online by 2026. KEY HIGHLIGHTS The Gulf Cooperation Council (GCC) nations are witnessing a significant transformation in data governance, driven by rapid digitalization and countries like the UAE, Saudi Arabia, and Qatar are introducing strict data protection regulations to address concerns over cybersecurity, privacy, and economic sovereignty. In January 2024, the implementation of Saudi Arabia's "Data Centre Services Regulations" supports the Kingdom's Vision 2030 by fostering sustainable digital infrastructure to attract investment and meet the demands of its tech-savvy, youthful population. Considering its economic vision and technological innovations, Saudi Arabia is becoming a key player in the Middle East's digital transformation, attracting international companies and investments. The ambitious Vision 2030 initiatives, strategic position, and growing technology ecosystem of the nation are driving the data center market's potential for substantial expansion. Businesses and industries making the shift to technological-first operations have access to support throughout the Kingdom because of government-supported programs to increase internet penetration and promote digital accessibility. LEAP Riyadh 2025 is anticipated to significantly transform the technological landscape and data center market in Saudi Arabia through substantial investments and innovative initiatives. This event will act as a platform for the shift in market dynamics, fostering growth and advancements in the upcoming years. As a result, we can expect the establishment of cutting-edge technologies, increased collaboration among industry players, and an overall enhancement of the digital infrastructure in the region. The initiatives launched during LEAP will likely attract global attention, paving the way for new opportunities and positioning Saudi Arabia as a key player in the tech industry on an international scale. KEY REPORT FEATURES Market size available in the investment, area, power capacity, and GCC colocation market revenue. An assessment of the data center investment in GCC by colocation, hyperscale, and enterprise operators. Data center investments in the area (square feet) and power capacity (MW) across cities in the country. A detailed study of the existing GCC data center market landscape, an in-depth market analysis, and insightful predictions about the GCC data center market size during the forecast period. Snapshot of existing and upcoming third-party data center facilities in GCC Facilities Covered (Existing): 92 Facilities Identified (Upcoming): 83 Coverage: 6 Countries Existing vs. Upcoming (Data Center Area) Existing vs. Upcoming (IT Load Capacity) Data center colocation market in GCC Colocation Revenue: Market Size & Forecast 2021-2030 Retail Vs Wholesale Colocation Revenue: Market Size & Forecast 2021-2030 The GCC data center market's landscape investments are classified into IT, power, cooling, and general construction services with sizing and forecast. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry. A transparent research methodology and the analysis of the demand and supply aspects of the industry. EXISTING VS. UPCOMING DATA CENTERS Existing Facilities in the Region (Area and Power Capacity) UAE Saudi Arabia Bahrain Oman Kuwait Qatar List of Upcoming Facilities in the Region (Area and Power Capacity) VENDOR LANDSCAPE IT Infrastructure Providers Arista Networks Atos Broadcom Cisco Systems Dell Technologies Fujitsu Hewlett Packard Enterprise Hitachi Vantara Huawei Technologies IBM Inspur Lenovo NetApp Oracle Data Center Construction Contractors & Sub-Contractors AECOM AESG Al-Balagh Trading and Contracting Co. WLL Aldar Al Latifia Trading & Contracting Co ALEC Engineering & Contracting Arcadis Arup Ashi & Bushnag Co. ASU AtkinsRealis BG&E Black & White Engineering CADD Emirates Capitoline Condor Group Core Emirates Critical Facilities Consulting & Services Dar DC PRO Engineering Direct Services Edarat Group EGEC EGIS Exyte Galfar Al Misnad Group AMANA HATCO HHM Group Hill International ICS Nett INT'LTEC GROUP JAMED James L Williams John Paul Construction Laing O'Rourke Laith Electro Mechanical Linesight Mace Marafie Group McLaren Construction Group Meinhardt Group MEMA Architecture MIS - Al Moammar Information Systems Qatar Site & Power Raghav Contracting Red Engineering Design Rider Levett Bucknall RW Armstrong SANA Creative Systems Site & Power DK STS Group Sudlows Syska Hennessy Group Telal Engineering & Contracting Turner & Townsend UBIK Jacobs Support Infrastructure Providers ABB Airedale Alfa Laval Canovate Caterpillar Chatsworth Products Cummins Delta Electronics Eaton Envicool Enrogen Grundfos HITEC Power Protection Honeywell Johnson Controls Legrand Mitsubishi Electric Rittal Rolls-Royce Schneider Electric Siemens STULZ Vertiv Data Center Investors Amazon Web Services Batelco Core42 Center3 du Edgnex Data Centres by DAMAC Equinix Google Khazna Data Centers Gulf Data Hub KEMS Zajil Telecom MEEZA Moro Hub Microsoft Mobily Oman Data Park Ooredoo Pacific Controls Quantum Switch Tamasuk stc Tonomus Zain New Entrants Agility DataVolt Desert Dragon Data Centers Pure Data Centres Qareeb Data Centres Sahayeb Datacenters KEY QUESTIONS ANSWERED How big is the GCC data center market? What is the growth rate of the GCC data center market? What factors are driving the GCC data center market? How much MW of power capacity will be added across the GCC during 2025-2030? Which countries are included in the GCC data center market report? Key Attributes: Report Attribute Details No. of Pages 225 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $3.48 Billion Forecasted Market Value (USD) by 2030 $9.49 Billion Compound Annual Growth Rate 18.2% Regions Covered Middle East REPORT COVERAGEThis report analyzes the GCC data center market share. It elaborately analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes: IT Infrastructure Server Infrastructure Storage Infrastructure Network Infrastructure Electrical Infrastructure UPS Systems Generators Transfer Switches & Switchgears PDUs Other Electrical Infrastructure Mechanical Infrastructure Cooling Systems Rack Other Mechanical Infrastructure Cooling Systems CRAC and CRAH Units Chillers Units Cooling Towers, Condensers and Dry Coolers Other Cooling Units Cooling Techniques Air-based Cooling Liquid-based Cooling General Construction Core & Shell Development Installation & Commissioning Services Building & Engineering Design Fire Detection & Suppression Systems Physical Security Data Center Infrastructure Management (DCIM) Tier Standard Tier I & Tier II Tier III Tier IV Geography UAE Saudi Arabia Bahrain Oman Kuwait Qatar For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment GCC Data Center Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
