The artificial intelligence (AI) revolution has reached a pivotal moment, and the Gulf Cooperation Council (GCC) countries1 are key players in its next phase. The spotlight until recently has been on building ever-larger AI models. The focus is now shifting toward more efficient frontier models and decentralized architectures.
This fundamental reshaping of the landscape comes at a time when the GCC region has gained momentum as a hub for AI infrastructure. Recent landmark agreements on the AI and data center fronts during a U.S. presidential visit have highlighted the region’s aim of transforming the Gulf into a global hub for AI and validated global investors’ interest in the region. Countries like Saudi Arabia, the United Arab Emirates (UAE), and Qatar are using their energy wealth and strategic positioning to lay the groundwork for tomorrow’s data centers and digital ecosystems. The convergence of technological shifts and regional ambition thus presents an opportunity for GCC countries to position themselves as a central force in global AI infrastructure.
For policymakers, the message is clear: GCC countries are doing more than closing the gap—they are building a new “digital Silk Road.” To realize such ambitions, governments need to focus efforts to attract hyperscalers and investors into AI and digital infrastructure. They can do so by creating investor-friendly regulatory policy, offering incentives, putting in place ethical frameworks, facilitating smooth asset buildup, ensuring access to clean energy, strengthening regional connectivity, supporting hardware localization and talent development, and enabling a holistic AI ecosystem. For their part, private-sector players and regional data center developers should carefully adapt their positioning and offerings to tap into global and regional demand.
Ultimately, AI isn’t just a technology play—it’s a geopolitical one. AI is becoming a pillar of national competitiveness, and data infrastructure is its foundation. For GCC countries, investing in data centers can be the key to leapfrogging competitors. The original Silk Road connected the East and West through trade. Today’s equivalent will run on fiber, graphics processing units, and AI computing. GCC countries sit at the heart of this route—not just as a transit point, but as a destination. If governments and private players align on vision, strategy, and execution, the region could define the future of AI infrastructure.
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