Saudi Arabia Leads Middle East AI Data Center Race, Says IDCA Chief

Saudi Arabia is positioning itself as the frontrunner in the Middle East's burgeoning artificial intelligence (AI) data center market, attracting significant investment driven by its abundant energy resources, economic strength, and strategic long-term diversification plans. Mehdi Paryavi, founder and CEO of the International Data Center Authority (IDCA), highlighted the Kingdom's leading role in an interview with Asharq Al-Awsat.

Paryavi anticipates Saudi Arabia will secure the largest portion of regional data center investments, with the United Arab Emirates following closely. Data centers, described as the "refineries of the modern era," are crucial for processing data, the digital economy's most valuable resource. Given Saudi Arabia's status as a major oil producer, it is uniquely positioned to lead in the next generation of AI data centers.

The IDCA's 2026 Global Energy Report identifies the Middle East as a key growth area for AI data centers. Currently, data centers consume about 2% of global electricity, but only 0.5% in the Middle East, indicating substantial room for expansion. Saudi Arabia and the UAE are the primary consumers, accounting for nearly 80% of the region's total data center electricity usage.

While competition is increasing with other Gulf nations and Middle Eastern countries pursuing their own digital transformation agendas, Saudi Arabia's advantages are substantial. These include the region's largest economy, political stability, a strategic geographic location, a large population, a significant sovereign wealth fund, and a clear commitment to economic diversification. The Kingdom aims to develop AI data centers with a combined capacity of 6 gigawatts by 2034, distinguishing itself in the development of hyperscale facilities.

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the refineries of the modern era