Weekly News Blast – 13th March 2025

Welcome to the GDCA Weekly News Blast! Check out the latest industry news from the GCC region below. Have any Middle East data centres news you’d like to share? Email yours to [email protected] with NEWS in the subject line.
Industry News

Bahrain

Bahrain MPs call for a joint GCC AI plan to spur regional growth

At a recent Bahrain government meeting, local MPs introduced a proposal pushing the BAH government to work with its GCC partners on a single strategy for AI. The proposal calls for stronger backing for AI training to build a local workforce, along with clear laws that encourage new ideas while keeping risks in check, in turn helping Gulf states stay ahead in an industry that is rapidly growing…Read more

Kuwait

Microsoft announces AI powered Azure Region for Kuwait

Tech giant Microsoft has announced plans to establish an AI-powered Azure Region in Kuwait. This strategic partnership aims to accelerate digital transformation in line with Kuwait’s Vision 2035, which focuses on transforming the country into a financial and trade hub both regionally and internationally, while attracting more international investment. Through the country’s Cloud First Policy, the government seeks to promote AI and cloud infrastructure investment, further enhancing Kuwait’s position in the GCC’s digital transformation race. H.E. Omar Saud Al-Omar, Minister of State for Communication Affairs, commented, “this partnership with Microsoft is a transformative milestone towards utilising AI technologies to drive economic diversification and enhance the nation’s position in innovation, trade, and investment.”…Read more

UAE

Adnoc signs $340mn AI contract with Abu Dhabi’s AIQ

Adnoc has awarded a $340mn contract to AIQ to introduce autonomous AI, or agentic AI, across upstream operations. Spanning 3 years, the agreement involves deploying EnergyAI, software that uses agentic AI, to analyse large amounts of data across Adnoc’s operations. The partnership is part of a broader industry trend towards energy companies increasingly using AI to try to maintain competitiveness and meet sustainability goals…Read more

Saudi Arabia

Saudi Arabia propels 5 startups into the Unicorn Club, with 35 more on the way

The KSA startup ecosystem is experiencing unprecedented growth, fuelled by ambitious government initiatives (aligned with Vision 2030) and a thriving investment environment. For example, the Tomoh programme injected over 2.5bn SAR in investments last year, while the Monsha’at government authority supported over 100,000 SMEs in 2024 through training, upskilling, and funding programmes. The recent emergence of unicorn startups in the Kingdom, companies valued at over $1bn, serves as a significant indicator that this growth is far from slowing down. Five Saudi startups have officially entered the Unicorn Club, with 35 more poised to join soon. These startups span key sectors such as AI, fintech, and other high-potential industries that foster a culture of innovation and digital transformations…Read more

Riyadh’s AI push to lead Middle East data centre growth

According to JLL, Saudi Arabia’s efforts to digitise its economy and position itself as a hub for AI are set to make Riyadh the next leading market for data centre growth in the Middle East over the next three years. The capital is expected to experience a 37% CAGR in its data centre capacity footprint (MW) through 2027 – almost double the forecasted growth of Dubai and Abu Dhabi, and well above the global average of 15%. Saudi Arabia’s large population, tax incentives, government initiatives, and strong commitment to AI and technology position it to quickly become the regional leader. As a result, we are witnessing an influx of global companies choosing to establish operations in the Kingdom, including tech giants like Microsoft, AWS, and Google, all of whom have committed to building data centre capacity in KSA. Additionally, the recent partnership between Groq and Aramco to develop an AI inferencing centre further underscores the growing momentum…Read more

Middle East

Syntys enters the MENA market, poised to lead digital infrastructure growth

Carved out from Ooredoo, Syntys (formerly known as MENA Digital Hub) has entered the Middle East and North Africa’s digital infrastructure landscape, quickly establishing itself as a trusted partner for hyperscalers, AI-driven businesses, and colocation wholesalers. Syntys launches with existing data centre assets in five MENA markets and, having already secured $552mn in funding last year from Qatari banks, aims to scale its capacity to over 120MW, supported by an initial capital of $1bn. The digital infrastructure provider has also partnered with Iron Mountain, leveraging the company’s deep expertise in hyperscaler data centres to strengthen MENA’s role as a digital hub and promote the growth of AI-enabled data centres in the region. Syntys’ launch paves the way for a new era in MENA’s digital infrastructure landscape.…Read more

Stc and Ooredoo launch SONIC
 
Stc Group and Ooredoo Oman have announced the signing of a Head of Terms agreement to establish an international terrestrial fibre optic network corridor between Saudi Arabia and Oman. Titled the SONIC Project, this corridor will support hyperscalers and telecom operators in Saudi and Oman with seamless and agile digital infrastructure. The SONIC Project, with the first phase expected to be completed in 2026, will ”be one of the key components in meeting the growing demand for regional and international connectivity through secure, high-capacity, and efficient networks”, comments Mohammed Alabbadi, Group Chief Carrier & Wholesale Officer at Stc Group…Read more

 

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