D A T A C E N T R E P R E D I C T I O N S
Nick Roudev , Counsel – TMT , Dubai , Linklaters
East . These partnerships can facilitate knowledge sharing , innovation and the pooling of resources to develop cutting-edge infrastructure and provide a particularly suitable business model given the region ’ s concentration of sovereign wealth into centralised funds and state-owned companies . Public-private partnerships ( PPPs ) will therefore continue to play a crucial role in funding and developing large-scale data centre projects .
The regulatory frameworks in the Middle East are also evolving to support the growth of data centres . Governments are introducing policies and regulations that promote investment , ensure data security and protect consumer rights . These regulatory advancements provide a stable and conducive environment for data centre operations , attracting both local and international players to invest in the region .
The proliferation of Internet of Things ( IoT ) devices and the growth of related industries in the region is expected to be another major driver in the construction of more data centre capacity in the Middle East . Along with their ambitious plans to turn their countries into AI powerhouses of global significance , the governments of the GCC countries are also stimulating the local IoT industry , and IoT devices generate colossal amounts of data that require storage , processing and analysis . Data centres equipped to handle IoT workloads will therefore be crucial in supporting smart city initiatives , industrial automation and other IoT-driven applications .
Another trend that we expect to continue in the future is the collaboration and partnerships between governments , technology companies and industry stakeholders in driving the growth of the local data centre industry and the localisation of foreign data centre technology in the Middle
The UAE became the first country in the region to enact mandatory AI regulation in one of its free zones , and along with its bigger neighbour , Saudi Arabia , has been reassessing and revamping various aspects of its telecom and technology regulations to provide a permissive legal environment for the booming data centre industry .
Overall , the region ’ s strategic approach , coupled with governmental support and technological advancements , positions the Middle East as a significant and evolving epicentre for the global data centre industry , poised to meet the digital demands of the future . �
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