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Why the MENA Region Could Lead the Next Phase of Data Center Growth

By District Energy posted 06-25-2025 15:13

  

Data Center Knowledge

Summary

The surge in AI, particularly generative AI, is fueling unprecedented demand for data center capacity around the world. Major technology firms like Microsoft and Amazon are investing heavily in AI infrastructure, with combined capital expenditure expected to reach $155 billion in 2025.

However, the availability of power has become a critical bottleneck for data center growth, and global shortages are pushing operators to seek new build sites with reliable, sustainable energy supplies.

So, where can operators look for favorable expansion conditions? In recent years, the Middle East and North African (MENA) region has emerged as an attractive data center hub, with the UAE and Saudi Arabia leading the charge in digital transformation.

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