The Middle East is setting the benchmark in AI deployment, according to new research from global real estate consultancy, Knight Frank. The region is widening its lead in digital infrastructure delivery, driven by sovereign investment, proactive regulation, and a bold approach to AI deployment. While other markets grapple with power access, planning delays and regulatory friction, Abu Dhabi and Dammam are emerging as fully aligned, investment-ready hubs for the next generation of cloud and AI services.
Knight Frank’s global data centre report projects a 46% increase in global capacity by 2027 – totalling more than 20,800MW and underpinned by £229 billion in capital expenditure. Within EMEA, over £49.8 billion is already committed to data centre expansion, with a growing share directed toward the Middle East.
Abu Dhabi: Sovereign strategy meets global hyperscale capital
With 500MW of IT capacity forecast and significant regional cloud infrastructure already live, Abu Dhabi is fast becoming the digital anchor of the Middle East. Microsoft’s $1.5 billion investment in G42 and Oracle’s fivefold expansion plan signal growing confidence in the UAE’s long-term infrastructure vision. Oracle’s partnership with Du to deliver sovereign AI-ready cloud services tailored to government requirements is a clear marker of strategic maturity in the region.
Dammam: Building the fibre-fed foundation of Saudi Arabia’s AI ambitions
Underpinned by the $71 billion economic impact of the PIF-Google Cloud partnership, Dammam is rapidly developing into a next-generation technology hub. Government-backed initiatives, including Dawiyat’s national smart grid and fibre rollout, are creating the infrastructure backbone needed for cloud computing, AI services, and smart city development. Strategically located in the Eastern Province, Dammam is attracting investment, technology and talent from across the GCC.
Stephen Beard, Global Head of Data Centres at Knight Frank, said, “The Middle East is leading not just in ambition, but in execution. Governments here understand that scale, speed, and sovereign alignment are essential to building digital economies fit for the AI era. While other regions wrestle with red tape and deployment delays, Abu Dhabi and Dammam are showing what coordinated delivery looks like on the ground.”
Darren Mansfield, Partner, Head of Data Centre Research, added, “Countries in the Middle East are establishing a new benchmark for digital infrastructure investment, characterised by the strategic alignment of policy frameworks, capital allocation, and land-use planning. Instead of merely following global trends, the region is proactively fostering the development of sovereign-backed cloud computing and artificial intelligence infrastructure, thereby shaping the future landscape of technology investment”.
Knight Frank’s analysis highlights that the next phase of global growth in the data centre sector won’t be determined by who wants it most, but by who can build it fastest. With delivery models grounded in long-term vision and backed by sovereign capital, the Middle East is proving that the infrastructure of the future is already under construction.