The race to build AI infrastructure is being driven by computing demands, AI workloads overwhelming legacy data centers, the strategic need for compute and data sovereignty, and the combined competitive advantages gained by early large-scale infrastructure owners.
In 2025 alone, tech giants invested approximately USD 320 billion in AI-enabled data centers and specialized hardware, an increase of over 60% year-on-year.
In the Middle East, Gulf sovereign wealth funds are at the center of this change, emerging as key players in funding and shaping the next generation of AI infrastructure alongside the telecoms sector.
With their deep capital base, these funds are uniquely positioned to support the significant capital requirements of hyperscale data centers, advanced computing clusters, and AI-optimized cloud platforms.
A notable example is the UAE’s G42. G42 operates across data centres, cloud services and AI applications, partnering with global hyperscalers to accelerate sovereign AI capabilities within the UAE.
The model combines global technology expertise with regionally based data centers and sovereign oversight, and shows how the Middle East is building AI capabilities without completely outsourcing strategic control.
Across the Gulf, AI is increasingly viewed as a strategic asset, and NVIDIA estimates that spending on AI infrastructure could exceed USD 3 trillion to 4 trillion by 2030, comparable to building the Internet in the 1990s and supporting economic diversification, national security, and global influence.
