Saudi Arabia leads the boom of data centers in the Middle East

Saudi Arabia wants to improve the digitalization of its economy and consolidate its position as a regional center for artificial intelligence, which makes Riyadh the fastest growing market for data centers in the Middle East in the next three years, according to an analysis performed by Jones Lang Lag (JL) in collaboration with “Bloomberg”. Jll indicated that the Saudi capital was preparing to increase its absorption capacity from databases, measured in myobic, with a complicated annual growth rate from 37% to 2027. “We see a tangible shift to digitalization, which improves the role of Saudi Arabia as an important player in the artificial intelligence sector,” says Daniel Thurb, head of data centers in Europe, the Middle East and Africa at JL. He added: “If we add favorable government policy to this equation, we find that the market centers market in the kingdom sees a clear wealth.” The development of the cloud structure in Saudi Arabia, Saudi Arabia, is time to develop its cloud infrastructure and improve data centers, with the aim of consolidating its position as a regional center for artificial intelligence, technology and innovation as part of its efforts to diversify the economy. Data demand is growing rapidly with the expansion of these sectors, at a time when hundreds of companies open new headquarters in Riyadh. Microsoft, the cloud computing sector at Amazon.com, and Equinix are one of the businesses committed to building capabilities for data centers in the kingdom. The American Groq Company, Groq, is also working with the giant oil company “Aramco” in the development of a center for artificial intelligence. According to the “JLL” report, tax incentives, free economic areas and the efforts to improve the sovereignty of the data have contributed to stimulating investments in this area. In another step to support the artificial intelligence sector, Saudi Arabia aims to launch a new project of up to $ 100 billion, partly aims to develop more data centers and improve its competitiveness in this area, amid similar initiatives in the UAE, according to Bloomberg. US restrictions on chips. These developments reflect the ambitions of Saudi Arabia in the technological sector, but some of its plans for growth have challenges, including the restrictions imposed by the US government to perform the latest artificial intelligence chips. These are the restrictions facing the United Arab Emirates. According to JL’s estimates, the value of the database market in the Middle East is currently approximately $ 6 billion, as the vague the region above the absorption capacity above, followed by Saudi Arabia. But thanks to its large population, which is about 35 million people, and its growing commitment to artificial intelligence techniques, the kingdom has strong opportunities to become the regional leading country in this area, according to the real estate and technological consulting company “the PropTchec nexaling”. In this context, Stephen McDonald, the procedure of ‘Probtic’, said that ‘strong belief’ and ‘the ability to distribute resources’ can contribute to overcome the challenges associated with high energy costs and the time needed to build a large scale databases. He added: “They have ambition and capital to be at the forefront of this sector.”