Substantial increase in data centre investments seen in next few years

The Middle East is amongst the attractive location for data centres.

Whilst some operators have made significant progress in diversifying across the value chain, the next few years will see a substantial increase in investments in data centre facilities, according to Arun Pai, principal and expert in TMT strategy, fintech, and AI at Analysys Mason.

This aims to meet their corporate objectives and tap into the global demand for data centre capacity, powered by artificial intelligence (AI) adoption.

“The Middle East’s position as an internet exchange point (IXP) makes it an attractive location for data centres as well as a landing point for subsea cables,” Pai said.

“Other parts of Asia will be especially well placed to meet the needs of AI-focused data centres, which require high intensity of computing power as well as reliable (clean) power supplies and emerging technologies for cooling systems,” he added.

Moreover, Pai also reiterated that mobile operators have been separating their tower assets and repositioning to an evolving industry.

Network operators are shifting to other parts of the digital infrastructure value chain in anticipation of their own evolving needs and those of the broader ecosystem.

Subsea cables, for example, are gaining recognition as a critical component of the global telecom landscape, driven by the rising demand for enhanced data transport capacity due to rapid AI adoption.