Driven by immense ambition and substantial government backing, the Middle East is aggressively positioning itself not merely to participate in the artificial intelligence revolution but to lead it, a sentiment echoed by leading telecommunications experts from firms like e&, center3, and Salam. The region’s journey to establish itself as a global AI hub is a complex undertaking, built on a foundation of rapid digital transformation but facing the colossal challenges posed by the unprecedented demands of AI. A comprehensive analysis of the current state of its digital infrastructure, from subsea cables to hyperscale data centers, reveals both significant progress and critical gaps. The strategic imperatives required to translate this bold vision into a tangible, world-leading reality hinge on proactive investment, technological innovation, and a fundamental shift towards regional collaboration, defining the path forward in this high-stakes technological race.
The Confluence of Ambition and Opportunity
A powerful, top-down government commitment serves as the primary engine for the region’s artificial intelligence aspirations. Omar Al Zaabi of e& highlighted this profound integration, describing a strategic transition within the UAE from a “smart government to an AI government” where AI is becoming a fundamental “lifestyle.” This vision positions AI not as a mere technological add-on but as a core component of societal and economic infrastructure. However, this is not happening in a vacuum. Raphael Jouenne of center3 provided a nuanced perspective, noting that AI is a powerful accelerator for a digital transformation that was already well underway. This existing momentum, fueled by strong growth in digitization, online gaming, and a booming e-commerce sector—exemplified by Saudi Arabia’s 20 million online shoppers—has already necessitated a robust digital backbone. The arrival of AI, therefore, does not create the need for this infrastructure from scratch but massively amplifies its scale and performance requirements, turning a steady evolution into an urgent revolution.
The consensus among industry leaders is that AI will unleash a massive, yet currently unquantified, wave of data traffic on regional networks. While Al Zaabi noted that it is “still too early to size the impact of AI traffic,” he foresees “big waves coming,” a sentiment strongly echoed by his peers. This uncertainty necessitates a proactive, forward-looking investment strategy. As Jouenne emphasized, the long lead times associated with major telecom infrastructure projects mean that “we must prepare today for future growth.” The economic stakes of this preparation were brought into sharp focus by Eng. Amjad Arab of Salam. Citing McKinsey data, he pointed out that generative AI adoption was expected to double in 2024 from the previous year’s 33% level. He contextualized this opportunity with Saudi Arabia’s projected 32% compound annual growth rate in AI by 2030 and the staggering forecast of the global AI market reaching $4.4 trillion—a figure equivalent to Japan’s entire GDP. This immense economic potential underscores the critical need to build the foundational infrastructure now, long before the demand fully materializes.
Forging the Digital Foundations
The core of the region’s AI readiness hinges on its physical infrastructure, where significant gaps remain despite recent progress. Amjad Arab called for a collaborative effort among “operators, silicon providers, and hybrids” to construct the necessary foundation. Central to this is connectivity, where low latency has been identified as a non-negotiable requirement for effective AI applications. This has prompted a strategic technological leap, with companies like e& investing heavily in next-generation submarine cables. Al Zaabi detailed a shift from current 8 to 24-fibre deployments towards future systems potentially featuring 32 or 48 fibres, stressing that “without [low latency], we cannot serve AI use cases effectively.” Jouenne expanded on this by advocating for a more sophisticated approach: creating a “digital infrastructure fabric.” This concept moves beyond outdated point-to-point models, envisioning an ecosystem where subsea cables and data centers are intricately woven together to provide the seamless, high-performance connectivity that modern AI-driven demands require.
Beyond sheer speed and capacity, scalability must be paired with unwavering resilience. Amjad Arab issued a stark warning about the vulnerability of regional networks to disruptions such as submarine cable cuts, asserting that a lack of diverse routes would leave the burgeoning digital economy dangerously exposed. To mitigate this risk, he advocated for a multi-pronged strategy that includes multiple, geographically separate submarine cable routes complemented by robust terrestrial fibre networks to ensure service continuity. This creates a resilient mesh that can withstand single points of failure. Al Zaabi concurred, adding a layer of complexity for a developed market like the UAE. He explained that the challenge is not just creating diversity but ensuring that these alternate routes can also deliver the requisite low-latency performance. This makes the two goals—resilience and performance—deeply interconnected, requiring a holistic infrastructure strategy where backup routes are just as capable as primary ones to support mission-critical AI workloads without degradation.
The Evolving Landscape of Data Centers
Data centers stand as another critical pillar for AI readiness, and their design is undergoing a radical evolution to meet the unique demands of this new era. Amjad Arab outlined the three foundational enablers for any successful data center project: the availability of power, competitive land costs, and high-capacity connectivity. He vividly stated, “Without power, land, and fibre, a data centre is just an empty shell,” calling on governments to support the development of grid infrastructure and ensure competitive utility pricing. Raphael Jouenne explained that new “Greenfield facilities in Saudi Arabia are being designed specifically for AI workloads,” incorporating advanced liquid cooling solutions and higher-density infrastructure to handle the immense power and thermal demands of modern AI hardware. This proactive design gives the region an edge over legacy data centers in other parts of the world, which may struggle to be retrofitted. Furthermore, Jouenne highlighted a key regional advantage: lower power costs compared to mature markets in Europe and North America, positioning the Middle East favorably for attracting large-scale AI compute deployments.
A Collaborative Path to AI Leadership
The discussion among these industry leaders culminated in a powerful consensus that regional cooperation, rather than isolated competition, represented the most effective path forward. The sheer scale of investment required to build a world-class digital ecosystem was deemed too immense for any single entity to bear alone, making strategic partnerships a necessity. Jouenne argued for the formation of “best-of-breed partnerships” that could strategically balance cost-effectiveness with cutting-edge technological leadership. It became clear that the evolving economics of AI data centers, driven by new cooling technologies and densification, were creating a new investment landscape where collaboration would be key to building sustainable and robust infrastructure. The experts affirmed that while the region possessed the ambition and key advantages to become a global AI hub, this potential was contingent upon addressing these foundational challenges. The proactive development of infrastructure and the fostering of regional partnerships were identified as the definitive factors that would determine whether the Middle East successfully translated its AI ambitions into a world-leading reality.
