Doha, Qatar: The Middle East is rapidly positioning the region as a rising global nexus for AI data center investment and innovation, according to Boston Consulting Group (BCG) report, ‘AI Data Centers: An Opportunity in the Middle East’. As global demand for AI infrastructure accelerates, with data center power needs projected to grow from 86GW in 2025 to 198GW by 2030, BCG finds that the Middle East has a uniquely competitive advantage in supplying scalable, cost-efficient AI compute capacity.
BCG’s report highlights that the Middle East is not merely participating in the global AI infrastructure race; it is fast emerging as a critical new hub of AI data center development. The region benefits from distinctive structural advantages. Its strategic geography places it within a 2,000-mile radius of over 3 billion people, enabling it to serve Europe, Asia, Africa, and the Global South with non-latency-sensitive AI inferencing at scale. Competitive cost structures, including up to 50% lower leasing rates, low power tariffs, and advanced cooling systems adopted by regional operators, significantly reduce the total cost of ownership.
Meanwhile, markets such as the UAE and Saudi Arabia continue to accelerate time-to-market for new data centers through fast-track development, dedicated investment teams, and special economic zone clusters such as Masdar City’s Stargate Campus. This momentum is reinforced by the region’s expansive land availability, scalable power ecosystems, and the planned ~720 Tbps Fibre in the Gulf (FIG) submarine cable project.
Reflecting on BCG’s participation at MWC Doha, Harold Haddad (pictured), Managing Director and Senior Partner noted: “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 Qatar’s 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. Hosting Mobile World Congress Doha reflects this momentum and Qatar’s growing influence as a pivotal hub for technological advancement. At BCG, we are proud to contribute to this journey, partnering across sectors to help build the digital foundations of the future economy.”
Thibault Werlé, Managing Director and Partner at Boston Consulting Group (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. Qatar’s ongoing initiatives, showcased during MWC Doha, reflect the broader regional commitment to shaping a competitive and globally relevant AI ecosystem that can serve markets across Europe, Asia, Africa, and the Global South.”
Qatar is steadily strengthening its position as a competitive player in the global AI and technology race, supported by strategic investments from the Qatar Investment Authority (QIA). These include the establishment of a $3bn global platform with Blue Owl Capital to accelerate international AI and cloud infrastructure expansion, as well as QIA’s participation in Anthropic’s $13bn funding round. These initiatives underscore Qatar’s commitment to advancing its digital capabilities and align closely with the ambitions of the Qatar Digital Vision 2030.
