E X P E R T O P I N I O N he Middle East

Over nearly 20 years in the building services industry and 10 years in the Middle East , I ’ ve had the opportunity to witness firsthand and participate in some of the biggest transformative forces at this exciting intersection . So , what are some of the current trends , predictions , strategies and concerns that are defining the future of data centres in the Middle East ?

Current market trends

The rapid expansion of the Middle East data centre market is driven by several key factors . Digital Transformation initiatives , increasing cloud adoption and ambitious smart city projects are at the forefront of this growth .

The same Arizton report shows the data centre construction market alone is expected to reach US $ 4.39 billion by 2029 , growing

Predictions for the near future

Looking ahead , we can expect several key developments to shape the Middle East data centre landscape :

• AI-driven growth and innovation : The Middle East has set ambitious AI aspirations , with countries like the UAE and Saudi Arabia positioning themselves as global AI leaders . The UAE ’ s National AI Strategy 2031 and Saudi Arabia ’ s National Strategy

at a CAGR of 10.98 %. This surge in construction activity underscores the region ’ s commitment to building a robust digital infrastructure .

One of the most significant trends is the increasing presence of hyperscalers in the region . While hyperscale presence in the Middle East was less than 5 % of the global total in 2023 , we ’ re seeing substantial investments for future data centres , according to Araner . Major players like Microsoft , Amazon Web Services and Google are establishing cloud regions , recognising the strategic importance of the Middle East in their global operations .

Sustainability is another crucial trend shaping the industry . Countries across the region are setting ambitious targets for renewable energy adoption . The UAE , for instance , aims to have 50 % clean energy in its power mix by 2050 , while Saudi Arabia targets 50 % renewable energy by 2030 . These initiatives are driving data centre operators to prioritise energy efficiency and explore innovative cooling solutions suited to the region ’ s climate . for Data & AI exemplify the region ’ s commitment to AI development . This push will drive significant demand for advanced data centre capabilities .

• GPU technology surge : To support these AI ambitions , there will be a massive increase in demand for GPU ( Graphics Processing Unit ) technology . GPUs are crucial for AI and Machine Learning workloads , offering the parallel processing power needed for complex AI algorithms . This shift will require data centres to adapt their infrastructure to accommodate highdensity GPU clusters .

• Security-cleared supply chains : The increasing need for advanced GPU technology , often subject to export controls , will necessitate the development of security-cleared supply chains . Data centre operators and AI companies in the region will need to navigate complex international regulations to ensure access to cuttingedge , export-controlled equipment .

• Advanced cooling solutions : The high-power density of GPU clusters , combined with the region ’ s harsh climate , will drive innovation in cooling technologies . Liquid cooling solutions

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