The Middle East is undergoing a rapid digital transformation, opening doors to advanced connectivity use cases and attracting hyperscale demand for content availability and market opportunities. This shift towards digitalization has enabled enterprises to embrace the cloud, with the adoption of technologies like AI driving the development of new digital infrastructure by regional government entities.
Within the Middle East, the Gulf Cooperation Council (GCC) region is reshaping connectivity across political, regulatory, economic, and infrastructure levels. This evolution is drawing international interest as the Middle East continues to enhance its regional interconnectivity ecosystem, acting as a vital bridge between the East and the West.
Capacity Middle East provides insight into the pivotal contributors realizing the national visions of GCC countries and the flagship projects that exemplify their commitment to the global connectivity landscape.
Bahrain’s strategic moves in connectivity
Bahrain is making strategic investments in the subsea and international connectivity space. The incumbent, Batelco, is constructing a private branch from the SEA-ME-WE 6 cable, connecting Southeast Asia to Western Europe. This move, coupled with the landing of the 2Africa cable, positions Bahrain as a formidable player in the connectivity market. Batelco’s commitment extends to building a new data center, catering to various niches and verticals, enhancing Bahrain’s competitiveness in comparison to larger markets like the UAE and Saudi Arabia.
Egypt emerges as the global connectivity transit point
Egypt emerges as a pivotal transit point in global connectivity, with up to 17% of the world’s internet traffic passing through its infrastructure. Economic activity in Egypt receives a boost from foreign investments, notably from Saudi Arabia and Qatar. Despite challenges in broadband speeds, the data center market is active, with the Emirati provider Khazna announcing of a 25MW facility, supporting digital government initiatives and enterprise sector growth.
Israel’s strong presence as the connectivity powerhouse
Israel’s advanced technology sector, robust economy, and strategic geographical position have positioned it as a vital player in the region’s connectivity map. Despite geopolitical challenges, the country thrives in the cloud services sector, with major investments from AWS, Microsoft, and Google. Goldacre’s announcement of a new 16MW data center in Netanya further solidifies Israel’s position. While subsea activity is in the planning stage, upcoming cables like the Trans Europe Asia System and Google’s Blue project are set to traverse the country, underlining its growing significance in the global connectivity landscape.
Jordan becoming an alternative to Egypt
Jordan is gaining prominence as an alternative route to Egypt for international connectivity routes. The Raman submarine cable is set to land in the southwestern corner of the country, and there are plans for the Trans Europe Asia System cable to run from Israel through Jordan to Saudi Arabia. The Aqaba Digital Hub, strategically positioned along a crucial international connectivity route, is generating excitement. It serves as the base for key projects such as AqabaIX, launched in partnership with DE-CIX, serving as a landing point for the Raman submarine cable and an existing 6MW data center.
Kuwait’s digital transformation with Google Cloud
Kuwait’s digital infrastructure is advancing with Google Cloud’s strategic alliance announced in January 2023. The partnership prioritizes digitization across government entities and state-owned enterprises, leveraging Google Cloud’s expertise in data analytics, cybersecurity, and AI. This collaboration extends to key sectors like healthcare, education, disaster recovery, and smart living. Internally, Kuwait boasts an impressive 97% 5G penetration, with leading operators offering commercial 5G services, solidifying its position as a digital innovation leader.
Oman aims to become a connectivity hub
Oman is gradually positioning itself as a connectivity hub and landing point, with Equinix’s data center in Salalah playing a crucial role. Seven additional data centers are in the pipeline, highlighting Oman’s commitment to becoming a key player in the GCC region. Initiatives like Oman-IX and the Oman-Emirates Gateway cable further contribute to the country’s connectivity goals.
Qatar’s strong 5G development and cloud partnerships
Qatar experiences robust 5G development, marked by contracts with international firms for enhanced network mapping and cloud platform modernization. On the enterprise front, Ooredoo collaborated with Google Cloud and Tech Mahindra to cloudify services, enhancing network performance. This partnership led to the establishment of a Google Cloud region in Doha in May 2023, complementing Microsoft’s global data center region launched in September 2022.
Saudi Arabia’s digital transformation drive
Saudi Arabia, in line with its Vision 2030 plan, is seeing substantial investments in data centers, cloud regions, and smart cities. The booming subsea cable market, connecting both internationally and domestically, enhances international connectivity and boosts the internal economy. Saudi Arabia’s openness to new operators and carrier-neutral infrastructure is evident through the development of cloud regions and data centers by major players like Huawei, Cisco, Oracle, and Equinix.
UAE’s pioneering role in cloud and data centers
The United Arab Emirates (UAE) has long been a hub for cloud regions. Microsoft pioneered Middle Eastern cloud regions in Dubai and Abu Dhabi in 2019, followed by AWS in August 2022. Oracle plans to add more cloud regions to its existing three in the UAE and the broader Middle East. Khazna Data Centers is developing a new facility in Masdar, initiated in 2022, and Equinix is set to open a third facility in Dubai. This expansion is supported by a new 7MW solar plant under construction by EDF, contributing to a total capacity of 31MW to meet the rising demand driven by the rapid growth of cloud services in the Middle East.
Conclusion:
The Middle East’s digital transformation journey is marked by strategic investments, innovative projects, and a commitment to becoming a global connectivity hub. Each GCC country plays a unique role, contributing to the region’s evolution as a bridge between the East and the West. As these nations continue to prioritize connectivity, the future holds boundless opportunities for growth and collaboration in the digital realm.
Source: Capacity Middle East
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