Since Saudi Arabia set its long-term economic vision and decided to diversify its economy and sources of income, many economists have predicted a bright future for its non-oil economic sectors, which specialists describe as "untapped." Officials and governments have offered partnerships and mergers in both the public and private sectors, especially after the Kingdom announced the expansion of its largest economy in the region.

With the accelerating pace of global digital infrastructure development thanks to artificial intelligence, a new report indicates that the Middle East could become a leading hub for data centers in the field of AI, thus becoming one of the biggest global opportunities for investment in data centers and AI growth.

The Global Energy Report 2026, issued by the International Data Center Authority (IDCA) on July 15, 2026, shows that although data centers currently consume about 2 percent of global electricity, the Middle East region is uniquely positioned to benefit from the next wave of AI infrastructure expansion, with its data center consumption not exceeding 0.5 percent of total electricity consumption.

The global data center landscape is at a pivotal point, where artificial intelligence (AI) is redefining much of its blueprint. The future of digital infrastructure is being defined by the evolving demand for AI, driving the industry toward a new generation of AI factories,... pic.twitter.com/9lpe6X3jI6

— IDCA (@IDCAorg) July 15, 2026

Considering the Kingdom's long-term economic vision, the future of the global economy, and artificial intelligence, a link will emerge between the two, so that each supports the other. If AI is the future, the need for data centers will increase and continue to grow, and consequently the demand for energy will rise. This is where Saudi Arabia comes in, with its abundant energy and the largest economy in the region. In this context, the CEO and founder of the International Data Center Authority, Mehdi Paryavi, told Asharq Al-Awsat that Saudi Arabia currently leads the regional scene in countries expected to attract the largest share of data center investments, followed by the UAE.

CEO and founder of the International Data Center Authority Mehdi Paryavi

Paryavi said in a special interview with Asharq Al-Awsat: "Data centers are the main engine of the digital economy; they are like the refineries of the modern era that refine the most valuable commodity for humanity: data... Saudi Arabia houses the world's largest oil production facilities, placing it in an ideal position to lead modern data and AI factories (data centers)."

Open competition

However, he indicated that competition is wide open in the Middle East currently in the data center sector, saying: "Data center consumption in Saudi Arabia and the UAE is about 440 megawatts and 340 megawatts, respectively. We see that the region's total consumption currently stands at about 1 gigawatt, with the Kingdom and the UAE accounting for about 80 percent of it. But there are ambitious efforts in Oman, Kuwait, and Qatar, and Syria and Iraq are undergoing radical transformations."

He also pointed to "Egypt, Jordan, and Iraq; Egypt has a population of over 100 million and a national AI strategy targeting a 7.7 percent contribution of AI to its GDP by 2030... Jordan is working on developing its plan to embark on a digital transformation journey, and Iraqi government members are currently working to attract data center construction companies and investors."

Paryavi returned to focus on Saudi Arabia again, saying that the Kingdom enjoys the largest economy in the region and is currently clearly concentrating on data centers. These efforts date back to 2004 when the Saudi government first presented its economic diversification plan at the G20 summit in Brisbane, Australia.

Paryavi stressed that "Saudi Arabia remains an attractive destination in the data center sector; it has shown leadership and commitment to a data center-based economy. It has a stable government, a distinguished geographical location, a higher population density than other Gulf Cooperation Council countries, a massive sovereign wealth fund, and an ambitious vision for economic diversification."

Saudi Arabia is the only country in the region from the G20, and its economy ranks 44th on the Global Digital Readiness Index issued by the International Data Center Authority (IDCA), according to the Global Digital Economy Report 2026. The Kingdom's AI ecosystem plan targets establishing AI data centers with a capacity of up to 6 gigawatts by 2034.

Data centers currently consume about 2 percent of global electricity (International Data Center Authority)

Paryavi tried to differentiate here between small and medium-sized data centers and mega data centers, saying that data centers are spreading in Saudi Arabia and the Gulf countries continuously, with small and medium capacities, but Saudi Arabia stands out as an attractive and qualified destination for mega data centers, pointing to the Saudi company "Humain," owned by the Public Investment Fund, which has launched ambitious plans in this regard.

He also referred to Oman, which launched the Omani Digital Triangle (ODT) project, planned to deploy 9 gigawatts of AI applications; and "Khazna Data Centers," based in the UAE, which was recently verified and accredited by the International Data Center Authority across its entire portfolio, the leading operator in the region.

The CEO and founder of the International Data Center Authority said in this regard that Saudi Arabia possesses abundant resources and a regional commitment to developing its data center portfolio, through its two ambitious initiatives "Humain" and "Hexagon," and data center operators such as "Center 3," "Mobily," and "DataVolt." He noted here that under current circumstances, the Sultanate of Oman emerges as a major data center hub (ODT) because it is currently the least affected and least exposed to the repercussions of the Iran war. However, the UAE also stands out, whether in terms of demand, investments, or execution capability.

Sdaia's "Hexagon" data center was designed according to the highest global standards (SPA)

Features of the Middle East

Paryavi believes that the Middle East is a cornerstone of the global economy. In the last century, the oil that fueled the world was extracted from the Middle East. Today, the region has the potential to extract the new oil: data. This new type of export will radically transform the region and will be a game-changer in a world thirsty for enhancing its capabilities in AI and data centers.