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From $20B sovereign AI hubs in Riyadh to a 500MW GPU city planned in Morocco and solar-powered aviation clouds in Dubai the first half of 2025 repositioned the Middle East & Africa from “frontier” to sovereign compute battleground.
We saw:
$75B+ in AI/data-center commitments across the Gulf, North Africa, and Sub-Saharan Africa
Sovereign AI laws and national visions (2030/2040) turning compute into state infrastructure
Private capital stacking into neutral interconnect, powered land, and GPU factories
Energy strategies (utility PPAs, green corridors) fused directly to campus design
Power/GPU bottlenecks shaping which metros scale and which stall
H1 2025 wasn’t just growth. It was a strategic realignment.
This is your MEA recap of the 12 most important shifts and what they signal for global AI infrastructure.
Here’s What’s Inside
Top 12 announcements ranked — from Saudi’s $20B AI hub to Morocco’s 500MW NVIDIA campus
5 key infrastructure trends — sovereign compute, REIT/JV capital, GPU corridors, energy moats, African AI-first builds
5 emerging opportunities — GPU hosting, sovereign cloud JVs, renewable-linked AI factories, Tier-II African colos, powered-land banking
5 regional shifts — Riyadh globalizes, Abu Dhabi fuses power+compute, Lagos scales, North Africa rises, East Africa connects
5 critical constraints — power scarcity, GPU access, policy lags, climate risk, talent gaps
Top 12 MEA Announcements (H1 2025)
Below are the most impactful strategic moves shaping the Middle East & Africa data center sector in the first half of 2025, ranked by capital scale, geopolitical significance, and long-term market implications.
1) Saudi Arabia’s $20B+ AI Hub (LEAP 2025)
Saudi announced $20B+ in AI-infra commitments spanning DataVolt, AWS, Equinix and NEOM anchoring a long-cycle push to localize compute and interconnect. The plan targets 6.6GW by 2034, signaling a nation-scale power+compute program that rivals any market globally. Expect phased delivery with rapid substation buildouts and GPU procurement woven into sovereign demand. Riyadh’s model blends state guarantees with private execution to compress timelines. [Read here]
2) OpenAI joins Abu Dhabi’s sovereign AI build
OpenAI aligned with Abu Dhabi on multi-site AI campuses, underwritten by $10B+ in new energy supply and utility integration. The formula is simple: pair top-tier models with firm, green power and sovereign-grade compliance. It positions the emirate as a compute-export hub for the broader region. Early sites set the pattern for PPA-anchored, liquid-cooled scale. [Read here]
3) Morocco–Naver–NVIDIA: 500MW AI Campus
A planned 500MW GPU facility propels North Africa into the top tier of AI geographies. Proximity to Europe plus renewable potential creates an export-quality training zone with favorable latency routes. The build seeds talent, fiber, and supplier ecosystems around Casablanca. North Africa’s role shifts from edge to continental training locale. [Read here]
4) Equinix commits $1B to Saudi
A $1B expansion from Equinix strengthens neutral interconnection and colo options in KSA’s core metros. Interconnect density becomes the control point for multi-cloud, sovereign clouds, and AI data gravity. This is a REIT-grade confidence signal on long-run demand curves. Expect peering-heavy designs ready for high-density, liquid-cool retrofits. [Read here]
5) AWS + Humain: $5B AI Zone (KSA)
AWS and Saudi venture Humain will co-develop a $5B AI zone sovereign by design, hyperscaler-operated. JV alignment secures land, power, GPUs, and compliance in one stack. Tenants gain predictable access to compute and tools under a national umbrella. It’s a template for public-private scaling of AI capacity. [Read here]
6) Oracle’s $14B decade plan for KSA
Oracle outlined $14B over 10 years to deepen sovereign-cloud and AI services in the Kingdom. The strategy targets regulated workloads needing residency, governance, and latency guarantees. It widens hyperscaler competition beyond general cloud into compliance-rich AI. Expect region count to expand with industry-specific SKUs. [Read here]
7) Emirates Group migrates to the world’s largest solar-powered DC
Dubai’s Moro Hub will host Emirates Group workloads in a solar-anchored flagship facility. Aviation shifting core digital ops to renewables sets a precedent for heavy-industry clouds. Energy-linked SLAs and heat-aware design will be key as traffic scales. Dubai cements an ESG-forward AI identity. [Read here]
8) Nigeria plans a $1.6B capacity surge
Nigeria aims to nearly quadruple DC capacity within five years, with Lagos as the regional anchor. Subsea diversity and population gravity support durable utilization across AI and cloud. Execution risk narrows as Tier-III/IV space and GPU-ready phases go live. West Africa’s demand epicenter is locking in. [Read here]
9) Israel’s $1.1B Ashalim AI-Renewable Complex
A $1.1B integrated AI+renewables park in Ashalim ties generation to compute from day one. The hybrid design hedges power volatility and supports higher-density cooling. Expect pilot programs in heat reuse and water-saving systems. It’s a blueprint for arid-zone AI infrastructure. [Read here]
10) Alfanar’s $1.4B Saudi DC program
$1.4B across Riyadh/Dammam expands the domestic developer bench and EPC capacity. Local delivery muscle shortens build cycles and localizes skill pipelines. With Vision 2030 tailwinds, procurement scale improves unit economics. More homegrown players = faster regionalization of know-how. [Read here]
11) Wingu.Africa raises $60M for East Africa corridor
Fresh capital funds expansions in Dar es Salaam, Addis Ababa, and Djibouti, stitching an edge-to-hyperscale path across East Africa. The playbook is modular, power-first, fiber-rich. As GPU hosting grows, these nodes become sovereign edge on-ramps. Expect multi-cloud connectivity layers to follow. [Read here]
12) Rack Centre opens 12MW AI-ready phase (Lagos)
A new 12MW AI-ready build elevates Lagos for high-density racks and liquid cooling. It enables inference at home and staged training before export to mega sites. The move reduces reliance on offshore compute and improves data gravity. Nigeria’s GPU gateway is switching on. [Read here]
Key Trends
1) Compute as Statecraft
Saudi, UAE, and Morocco treat compute like ports and refineries—strategic, regulated, and scaled over decades. Laws, zones, and sovereign guarantees convert DCs into instruments of policy. Energy-first design (PPAs, on-site generation) is now core to siting. The outcome is a national-scale moat around AI capacity.
2) REITs and Sovereign JVs Set the Pace
Interconnect REITs and sovereign-backed JVs unlock execution velocity that single-balance-sheet builds often can’t match. Capital efficiency, land control, and risk sharing compress delivery cycles. This architecture wins especially where power is scarce and compliance is heavy. Expect more JV-anchored GPU hubs tied to utility contracts.
3) GPU Corridors, Not Just Campuses
Operators are planning corridors linking metro edges to power-rich inland zones, rather than isolated sites. This balances low-latency services in cities with training at the grid’s edge. It also spreads climate and power risk across a network. Morocco–EU and East Africa arcs are early examples.
4) Energy + Compute as a Single Asset Class
Projects like Ashalim and Dubai’s solar DC show generation and compute financed as one system. This reduces grid interconnect risk and price volatility. It also supports higher densities via liquid cooling and heat reuse. The best-in-class campuses will look more like power plants with GPUs than IT buildings.
5) Africa’s AI-First Leapfrog
Rather than retracing legacy hyperscale, African operators are standing up GPU-native phases. That shifts capex toward high-density, liquid-ready space and sovereign data gravity. Early moves in Lagos and East Africa are the pattern. Expect capital to follow operators with power-anchored roadmaps.
Emerging Opportunities
1) GPU Hosting Hubs
Markets like Morocco, Lagos, and Johannesburg are becoming attractive for sovereign-backed GPU hosting. These hubs guarantee allocation and uptime, giving hyperscalers and enterprises secure access to scarce compute. By offering orchestration tools and compliance guardrails, they can monetize premium pricing. Early movers with sovereign alignment will capture global AI spillover workloads.
2) Sovereign Cloud Partnerships
Joint ventures between states and hyperscalers such as AWS, Oracle, and Equinix are unlocking rapid deployment. Governments gain data residency and sovereignty, while operators tap into deep capital pools and guaranteed demand. This alignment accelerates permitting and utility approvals that often delay builds. Over time, sovereign clouds are likely to become the standard for regulated workloads in MEA.
3) Renewable-Linked AI Factories
Energy and compute are converging in facilities powered directly by solar, wind, and hybrid grids. Projects like Israel’s Ashalim complex or Dubai’s solar-powered data center show the appeal of tying PPAs directly into data campuses. This reduces grid dependence and ensures predictable energy pricing. Sustainability adds investor appeal, making these campuses premium assets in a constrained market.
4) Tier-II African Colocation Corridors
Operators like Wingu and Raxio are targeting secondary cities Dar es Salaam, Addis Ababa, Kampala—rather than just top metros. Modular builds allow for quicker scaling with less upfront risk, creating distributed corridors of sovereign compute. Fiber integration ensures these facilities act as resilient edge zones, not isolated sites. This model helps decentralize AI infrastructure and expand local access.
5) Powered Land Banking
Developers and sovereign funds are buying pre-zoned parcels with renewable access and substation proximity. These parcels can be flipped, leased, or developed into campuses, creating a new form of “compute real estate.” Controlling land-plus-power accelerates hyperscaler contracts by reducing development risk. The most valuable parcels will be those near renewable corridors with sovereign policy support.
Sector & Geographic Shifts
1) Riyadh Globalizes
Saudi Arabia’s target of 6.6GW positions Riyadh among the world’s most ambitious AI hubs. Partnerships with DataVolt, AWS, and Oracle expand beyond national needs into global relevance. Interconnect and neutral colocation strengthen its role as a multi-cloud anchor. This trajectory places Riyadh alongside Mumbai and Tokyo as a top-tier AI city.
2) Abu Dhabi as Power + Compute Nexus
Abu Dhabi is pioneering the merger of sovereign energy utilities with hyperscaler partnerships. Its $10B+ energy commitments secure power supply before data centers even break ground. This approach creates resilience against grid bottlenecks while making compute a tradable export. Abu Dhabi is defining what a sustainable AI-energy sovereign model looks like.
3) North Africa Levels Up
Morocco’s 500MW NVIDIA hub and Israel’s renewable-AI park elevate the region into Tier-1 territory. These projects combine low-latency European proximity with abundant renewable energy. North Africa now competes directly with Southern Europe for AI training spillover. The corridor is positioned to become a transcontinental bridge for AI infrastructure.
4) Lagos Becomes West Africa’s Anchor
Nigeria’s $1.6B surge and Rack Centre’s 12MW build mark Lagos as West Africa’s dominant hub. The city’s subsea connectivity ensures it can handle global workloads, not just regional demand. By embedding GPU-ready space, Nigeria reduces reliance on Europe and Asia. Lagos is set to define the next five years of Africa’s AI economy.
5) East Africa Connects the Edge
With Wingu and Raxio driving builds in Ethiopia, Tanzania, and Uganda, East Africa is moving fast. These modular expansions create corridors where inference and caching can occur closer to end users. Fiber backbones link them to regional hubs like Nairobi and Djibouti, making them resilient. The strategy positions East Africa as a diversified, edge-first AI market.
Challenges & Gaps
1) Power Scarcity & Queue Risk
In the Gulf, power demand has already outpaced grid allocation, with UAE officials calling the situation “overwhelming.” Projects without firm PPAs face multi-year delays, even after land is secured. Developers are turning to private wires and on-site generation, but that raises costs and regulatory hurdles. Power is now the single biggest bottleneck for MEA’s AI buildout.
2) GPU Access & Delivery Timing
NVIDIA remains the choke point for GPU supply across the region. Even sovereign-backed projects face long lead times, with some campuses breaking ground without guaranteed GPU allocations. This creates the risk of stranded assets and delayed ROI. Multi-vendor procurement strategies and orchestration flexibility are becoming survival tools.
3) Policy Fragmentation
Governments are ambitious but inconsistent setting AI goals without streamlined permitting or incentives. Each country has its own standards, forcing bespoke negotiations that slow projects. While JVs with sovereign entities can mitigate, execution timelines are still stretched. Harmonized frameworks will be critical if MEA wants to scale as fast as Asia.
4) Climate & Water Stress
Hot, arid environments raise the cost of cooling and increase insurance premiums. Water scarcity adds another layer of risk, especially for campuses relying on evaporative cooling. Without climate-adaptive designs like hybrid cooling and heat reuse, facilities risk becoming unsustainable. Investors are now asking tough ESG questions before committing.
5) Talent Deficit
Specialized skills in AI infrastructure liquid cooling, chip-scale design, workload orchestration are scarce in MEA. Reliance on imported expertise slows commissioning and raises costs. Training academies and local vendor partnerships are starting, but they are not yet at scale. Without a pipeline of trained engineers, MEA’s AI ambitions may stall.