This is what is happening in the world of data centres.The IFG...

This is what is happening in the world of data centres. The IFG group is creating its niche in this global changing data market. There is much to unfold. For decades, the Middle East has been at the heart of global energy markets. Home to nearly half of the world's proven oil reserves and 40% of global natural gas, the region has long been a geopolitical battleground for major world powers. ‌ However, as the world transitions away from fossil fuels, Gulf nations are pivoting toward digital transformation. Saudi Arabia, the United Arab Emirates and Qatar are investing billions to build knowledge-based economies driven by AI and advanced technology. ‌ Data centres have emerged as critical pillars of this strategy. Demand is soaring. Stricter regulations require data to be stored locally, and AI applications are consuming unprecedented computing power. The Middle East data centre market, worth $5.57bn in 2023, is on track to hit nearly $10bn by 2029. In the Gulf alone, 115 new data centre projects - valued at more than $20bn - are in the pipeline. ‌ Saudi Arabia and the UAE already have 46 operational facilities. These two regional giants are locked in a high-stakes race to establish themselves as AI superpowers, leveraging their deep-pocketed sovereign wealth funds to secure a dominant position. ‌ Their strategic geographic location further strengthens their bid to become global data hubs, connecting Asia, Europe and Africa - a move that enhances both economic leverage and regional soft power.

"This digital shift signals more than just an economic transformation - it's a geopolitical statement."

The UAE already boasts one of the highest data consumption rates in the region, with 99% of its population online. ‌ Amid this transformation, the Middle East has attracted the interest of US and Chinese cloud providers. Amazon Web Services, Microsoft and Google Cloud are expanding their regional footprint to serve both local and international customers. ‌ Meanwhile, Huawei Cloud is making inroads, particularly in Saudi Arabia and the UAE, offering AI-driven solutions and digital infrastructure. Alibaba Cloud is also expanding by partnering with local firms to establish data centres. The Gulf states are trying to balance US and Chinese tech investments, reflecting their broader geopolitical hedging strategies. ‌ This digital shift signals more than just an economic transformation - it's a geopolitical statement. Saudi Arabia and the UAE are no longer content being passive energy suppliers; they're keen to play a significant role in shaping the future of AI. ‌ So, is AI the new oil? The Gulf certainly seems to think so. And if their digital ambitions pay off, then it could well define their future influence in the global digital economy.

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