Despite regional geopolitical tensions, UAE and Saudi Arabia are accelerating data center construction and grid interconnections to cement their status as Middle East AI hubs.

The United Arab Emirates (UAE) and Saudi Arabia are advancing artificial intelligence data center initiatives despite security risks tied to the US-Iran war, as both nations pursue economic diversification beyond oil and gas.

In Abu Dhabi, Khazna, a UAE-based data center developer backed by G42, confirmed that its planned 5-gigawatt AI campus remains on schedule to deliver its first 200 megawatts in the fourth quarter. Meanwhile, in Saudi Arabia, Humain, an artificial intelligence company backed by the Public Investment Fund, intends to raise an initial US$2.5 billion to construct more than 6 gigawatts of computing capacity.

Security concerns persist following reports from Amazon Web Services (AWS) regarding disruptions at its data centers in Bahrain and the UAE during Iranian strikes, with subsequent assessments confirming damage at the Bahraini sites.

Industry analysts caution that continued access to advanced semiconductors will remain a critical factor in the pace of project expansion. This constraint persists even after Washington relaxed export controls for the UAE and subsequently approved AI chip shipments to both the UAE and Saudi Arabia, subject to specific policy conditions.

Source: Bloomberg