Middle East Emerges as AI Data Center Powerhouse

The Middle East is fast becoming a strategic hub for artificial intelligence infrastructure, with its data center market expected to surge from $8.63 billion in 2024 to $19.89 billion by 2030, growing at a CAGR of 14.93 percent.

Leading this growth are Saudi Arabia and the UAE, with 43 and 56 data centers, respectively, fueled by sovereign cloud ambitions and robust digital transformation agendas. Saudi Arabia’s Vision 2030 and mega-projects like Neom are positioning the kingdom as a global AI destination. Companies like Elon Musk’s xAI are eyeing the region not just for its capital but also for its energy capacity—a key requirement for AI infrastructure.

Key Highlights

• Middle East data center market to nearly triple by 2030.
• xAI eyes Saudi Arabia for massive energy and capital access.
• Sovereign funds like PIF drive long-term AI infrastructure growth.

AI data centers require significantly more power than traditional facilities, with energy demand expected to rise from 4 GW in 2024 to 123 GW by 2035. The largest centers may need up to 2,000 MW each.

Humain’s multi-gigawatt proposal, backed by Saudi’s Public Investment Fund (PIF), is especially attractive to xAI and others, even though completion is years away. Access to sovereign wealth allows for long-term, large-scale investments that traditional investors can't match.

Also Read: World's Largest U.S. Data Center Abroad to Rise in UAE Under AI Pact

The region’s strategic geography, sovereign funding, and renewable energy potential further amplify its appeal. Global partnerships like BlackRock’s AI Infrastructure Partnership, aiming to unlock $100 billion in capital, underscore the high-stakes race for AI infrastructure leadership.