Weekly News Blast – 27th February 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

Qatar

Iron Mountain invests in Ooredoo’s data centre unit

Iron Mountain has acquired a minority stake in Ooredoo’s data centre company, MENA Digital Hub, with the shared goal of driving data centre growth across the MENA region. The companies stated that this partnership will enable Ooredoo to expand its hyperscale and AI data centre infrastructure in MENA, combining Iron Mountain’s global operational expertise with Ooredoo’s market strength and knowledge. Initially, the focus will be on operational support, infrastructure enhancement, and assisting MENA Digital Hub in expanding its data centre capacity in the region. This marks Iron Mountain’s first foray into the MENA region…Read more

Qatar opts for AI to boost public services

In a bid to enhance its services, Qatar’s government has signed a 5-year agreement with Scale AI to deploy AI-powered tools and training. The deal will enable Qatar’s government to adopt technologies such as predictive analytics, automation, and advanced data analysis, streamlining operations and accelerating Qatar’s progress toward becoming a leader in AI -especially in the face of rising competition from neighbouring KSA and UAE…Read more

MCIT launches ‘Digital Skills Framework’ initiative to accelerate digital transformation

Qatar’s Ministry of Communication and Information Technology (MCIT) has developed the Digital Skills Framework to empower individuals and organisations with essential digital skills that support Qatar’s digital transformation and align with the pillars of its Digital Agenda 2030. Covering 19 key digital skill domains and 115 digital skills, the framework ensures a comprehensive approach to digital upskilling…Read more

UAE

Du signs deal to extend Peace subsea cable system

UAE-based telco Du has signed an agreement to extend the Peace subsea cable into the UAE. At 21,500km in length, the cable features 13 landing points across 12 countries, connecting Singapore to Europe, Asia, and Africa. Peace is privately owned and operated by Hong Kong-based PCCW Global, though the branching units are owned by its telco partners. The cable currently has a capacity of 96Tbps for the Pakistan-Egypt segment and 192Tbps for the Mediterranean segment from Egypt to France. The capacity of the new UAE extension is currently unknown, but it is expected to go live in H2 2026…Read more

e& divests 40% stake in Khazna for $2.2bn amidst record profits

UAE-based telco e& has announced the sale of its 40% stake in Khazna Data Center Holdings for $2.2bn. As part of this transition, e& will exit its Khazna investment, allowing G42 to join as the majority stakeholder. Alongside the AI company, MGX and Silver Lake will come on board as minority investors. This transaction marks the next stage of the company’s evolution, positioning Khazna to “accelerate its expansion, deliver AI-ready infrastructure, and strengthen its role in enabling economies to grow across the globe,” comments Khazna CEO Hassan AlNaqbi. The deal is expected to be completed by the end of Q1 2025…Read more

Saudi Arabia

Mobily invests $905mn in data centres and subsea cables

Saudi telecom company Mobily has announced a $905mn investment in data centres and subsea cables as part of a program to enhance the Kingdom’s digital infrastructure and expand its footprint. In addition to its investment in the AAE-1, Africa-1, and SeaMeWe-6 subsea cables, the company’s data centre investment has exceeded $533mn, with plans to build facilities with a total capacity of 39MW. Approximately 13MW is set to enter commercial operation by the end of Q1 2025, with the remaining capacity going live in the following year…Read more

LEAP 2025 announcements in further detail –

DataVolt to develop data centre in Riyadh

The Saudi Authority for Industrial Cities and Technology Zones (MODON) has agreed on land lease terms for DataVolt to develop an AI-ready data centre in Riyadh. MODON has stated that DataVolt’s deal, which involves a $670mn investment, directly aligns with the goals of Saudi Vision 2030. DataVolt had previously announced its commitment to investing over $5mn in the development of approximately 300MW of data centre capacity in the Kingdom, as well as plans to build a 1.5GW data centre campus in Neom’s Oxagon industrial area. The first 300MW phase is expected to go live in 2028…Read more 

Tencent Cloud expands to Saudi Arabia with $150mn investment

Tencent Cloud has announced the launch of its first cloud region in the Middle East, establishing two availability zones in Saudi Arabia. Expected to be operational by the end of 2025, the expansion will integrate Saudi Arabia into Tencent’s global network, which spans over 50 availability zones across 21 regions. The cloud infrastructure will feature AI-powered analytics and digital media tools, supporting the Kingdom’s digital transformation—particularly its gaming and e-sports ambitions. As part of the National Gaming and Esports Strategy, Saudi Arabia is investing heavily in digital entertainment and preparing to host the 2025 Esports World Cup. The new cloud region is set to be a significant boost to these efforts…Read more

Equinix launches $1bn data centre project in KSA

Equinix has announced a new data centre project in Saudi Arabia, representing an investment of $1bn. The data centre is expected to initially provide 100MW of capacity and is designed to meet the growing demand for cloud, AI, and enterprise workloads…Read more

Groq secures $1.5bn from Saudi Arabia to expand AI inference infrastructure in the region

AI chip company Groq has secured a $1.5bn investment from Saudi Arabia to expand its AI inference infrastructure in the Kingdom. Groq already has a partnership with Aramco Digital in the region, under which it will provide scalable infrastructure to bring the voice-commanded generative AI model, Norous, to market. This new investment will support the expansion of Groq’s existing data centre in Dammam and contribute to the development of the Saudi Data and Artificial Intelligence Authority’s (SDAIA) Arabic Large Language Model, ALLaM…Read more

 

 

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