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Data Centres Take the Throne as the New Crown Prince of the Middle East
- Countries in the Middle East, like Saudi Arabia and UAE, are emerging as new players in the AI revolution, partnering with tech giants to enhance AI infrastructure and data centers.
- Saudi Arabia's PIF-backed 'HUMAIN' AI company is investing in AI services and technology, forming partnerships with NVIDIA, Amazon Web Services, AMD, Oracle, Super Micro Computer, and more.
- The Middle East's growing data center ecosystem, supported by government initiatives and attractive incentives, is becoming a preferred destination for data center investments, with capacity expected to triple in five years.
- Countries in the Middle East offer advantages like low-cost land, affordable power, connectivity prices, access to capital, and favorable policies for data center investments.
- Government initiatives like 'Project Transcendence' in Saudi Arabia and the MGX Fund in Abu Dhabi demonstrate a commitment to investing in AI infrastructure to diversify economies.
- Favorable factors for data center investments in the Middle East include tax incentives, simplified procedures, low land costs, affordable electricity tariffs, and connectivity through undersea cable networks.
- Challenges such as cooling systems, especially in water scarcity regions, are being addressed through innovative technologies like seawater-based cooling systems.
- The Middle East's international ties, trade relationships, and strong connectivity to global networks position the region as a key hub for technology and AI investments.
- Trump's visit to Gulf countries and potential easing of restrictions on AI chip exports to Saudi Arabia highlight the growing importance of the Middle East in the global technology landscape.
- Partnerships between Middle Eastern countries and tech companies indicate a significant shift towards advancing AI, data center infrastructure, and digital economies in the region.
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