Middle East's AI ecosystem capable of serving 3 billion people, says report  

The Middle East is emerging as a critical hub for AI data centre development, benefiting from its structural and geographical merits, amid rising demand for AI infrastructure. 

The region’s strategic location offers a vantage point, placing it within a 2,000-mile radius of over three billion people, enabling it to serve Europe, Asia, Africa, and the Global South, with non-latency-sensitive AI inferencing at scale, according to a Boston Consulting Group report. 

Data centre power needs are forecasted to rise from 86 GW in 2025 to 198 GW by 2030, placing the Middle East at the forefront of supplying scalable, cost-efficient AI compute capacity. 

The Middle East’s competitive cost structures, including up to 50% lower leasing rates, low power tariffs, and advanced cooling systems, pare ownership costs. At the same time, economies such as Saudi Arabia and the UAE continue to press ahead with new data centre launches. 

“The Middle East is undergoing a pivotal transformation as it positions itself to become a global hub for AI infrastructure,” said Thibault Werlé, managing director at Boston Consulting Group.

“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.” 

Regional economies have undertaken major initiatives to bolster their efforts in reshaping the Middle East’s AI infrastructure landscape.