The race to build AI infrastructure is being driven by compute demands, AI workloads overwhelming legacy data centers, the strategic need for compute and data sovereignty, and the compounding competitive advantages gained by early, large-scale infrastructure owners.
In 2025 alone, tech giants invested roughly USD 320 billion in AI-ready data centers and specialized hardware, a year-on-year surge of more than 60%.
In the Middle East, at the center of this shift are Gulf sovereign wealth funds, which are emerging as pivotal players in financing and shaping the next generation of AI infrastructure alongside the telecom sector.
With deep capital power, these funds are uniquely positioned to support the massive capital requirements of hyperscale data centers, advanced compute clusters, and AI-optimized cloud platforms.
A notable example is the UAE’s G42, which operates across data centers, cloud services, and AI applications and has partnered with global hyperscalers to accelerate sovereign AI capabilities within the UAE.
This model, where global technology expertise is combined with locally anchored data centers and sovereign oversight, illustrates how the Middle East is building AI capacity without fully outsourcing strategic control. Across the Gulf, AI is increasingly viewed as a strategic asset, with NVIDIA estimates indicating that AI infrastructure spending may surpass USD 3–4 trillion by 2030, rivaling the internet build-out of the 1990s and underpinning economic diversification, national security, and global influence.
