The Middle East’s rapid rise as a digital hub

Attributed to: Pete Hall
Title: Regional Managing Director, EMEA
Company: Ciena
Driven by digital transformation, favorable government policies, and a soaring demand for cloud services, 5G and Artificial Intelligence (AI), the Middle East is seeing a rapid growth in data center infrastructure activity. This is also driving an increasing need for sustainable, scalable and high-quality facilities.
According to the International Data Corporation (IDC), overall spending on information and communications technology (ICT) across the Middle East, Türkiye, and Africa (META) will top US$238 billion this year, an increase of 4.5% over 2023. Against this backdrop, the Middle East is emerging as a key digital hub, and with that, the region’s need for more data centers are expected to continue growing.
While the data center market in the Middle East is still developing, its strategic location and vast investment opportunities are attracting global cloud providers. For example, Google Cloud, opened its new cloud region in Dammam last year and recently celebrated the anniversary of their Doha cloud region.
Governments in the Middle East are at the forefront of this expansion. The UAE has become a hub for data centers, supported by its tech-savvy population and strategic location. Meanwhile, Saudi Arabia announced a US$18-billion investment plan to develop mega data centers and enhance its digital infrastructure, according to the Ministry of Communications and Information Technology.
How can the Middle East continue its role as a digital hub?
Technology
As global cloud providers and traditional service providers continue to expand their data center footprint in the Middle East, it is important that the connectivity between these data centers is efficient, scalable and reliable. Data centers house compute and storage resources for applications, data, and content. Data centres need to talk to each other—to share data and content and provide back-ups for redundancy. And in this cloud-based, application-centric world, access to that data is a critical challenge.
Many data center operators are utilizing Data Centre Interconnect (DCI) solutions, which connect two or more data centers together using high-speed packet-optical technologies. DCI solutions enable the transit of critical assets over any distance, from across town to ultra-long trans-Pacific or trans-Atlantic oceanic links and everything in-between.
With the rise of new applications comes new challenges: new traffic patterns, the move to virtualized and distributed applications, and the need for higher bandwidth and lower latency connectivity to end-users. Service providers constantly have the twin needs of having to better leverage their existing network while prioritising the end user experience – and this drives the evolution towards more streamlined, programmatic adaptive infrastructure.
Network services providers, like Ciena, support META data centers with advanced optical and automation technologies, enhancing efficiency, scalability, and connectivity. These solutions are key to managing data traffic and driving the region’s digital transformation.
Sustainability
Sustainability is one of the critical challenges facing the data center industry in the Middle East. Cooling data centers in the region’s hot climate is energy-intensive, and currently, many facilities rely on inefficient air-based cooling systems. This presents an opportunity to adopt more sustainable methods, such as liquid cooling. A white paper by Green Revolution Cooling reports that liquid cooling can reduce energy consumption by 20-30% and water usage by up to 50%.
The use of renewable energy sources like solar photovoltaic and green hydrogen is gaining traction among forward-thinking operators. For instance, the 16,000 sq m, 100-MW Moro Hub data center, near Dubai, is the world’s largest solar-powered data center according to Guinness World Records. Owned by Dubai Electricity and Water Authority (DEWA), it is fully powered by solar energy from the adjacent Mohammed bin Rashid Al Maktoum Solar Park.
Security
With the rise in digital services, data security becomes a critical concern. The Middle East has seen a growing emphasis on data protection regulations. For instance, the UAE and Saudi Arabia have introduced stringent data protection laws to safeguard personal and sensitive information.
In Saudi Arabia, The Communications, Space and Technology Commission (CST) issued a “Data Center Services Regulations” document, which includes regulations on protecting users and data. These regulations compel data center operators to implement robust security measures to prevent breaches and ensure the integrity of stored data.
Public Sector Support
Government support in the Middle East plays a crucial role in fostering the growth of its reputation as a digital hub. For instance, the UAE’s National Digital Government Strategy 2025 emphasizes resilience, aiming to support sectors critical to the nation’s economy and security, including energy, telecoms, transportation, and health. Similarly, Saudi Arabia’s Vision 2030 and Qatar’s National Vision 2030 are focused on reducing dependency on oil, investing in technology, and promoting private sector growth.
With increasingly complex demands from the private and public sectors, data centre infrastructure in the Middle East is being localised to build national resilience and digital ambitions. As the Middle East pivots from oil-driven to data-driven economies, data centres will be mission critical to shaping the future.
The Middle East’s rapid growth as a digital hub is the result of collaborative efforts by an entire ecosystem: strategic investments, innovative technologies, supportive government policies, and a strong focus on sustainability.
As the region continues to attract global cloud providers and enhance its data center capabilities, it is important to take steps to balance growth with sustainability and security, ensuring a foundation for a resilient and thriving digital future.