{"id":238759,"date":"2025-12-18T06:03:09","date_gmt":"2025-12-18T06:03:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/238759\/"},"modified":"2025-12-18T06:03:09","modified_gmt":"2025-12-18T06:03:09","slug":"qatar-bets-on-cheap-power-to-catch-up-in-gulf-ai-race","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/238759\/","title":{"rendered":"Qatar bets on cheap power to catch up in Gulf AI race"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Qatar seeks to catch up with Saudi Arabia, UAE in Gulf AI race<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Qatar&#8217;s cheaper energy, deep pockets are potential advantages<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Challenges include Western data governance, accessing chips<\/li>\n<\/ul>\n<p>DUBAI, Dec 17 (Reuters) &#8211; Qatar is banking on its abundant, low-cost energy to make up for lost time in the Gulf&#8217;s <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/technology\/artificial-intelligence\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> race, hoping that cheap power and deep pockets will help it catch up with regional rivals that have already secured a head start.The <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/technology\/brookfield-qatars-qai-form-20-billion-jv-ai-infrastructure-2025-12-09\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">launch of Qai<\/a>, backed by the country&#8217;s $526 billion sovereign wealth fund and a $20 billion joint venture with Brookfield , marks Qatar&#8217;s most ambitious move yet into a sector that is reshaping global technology and economics.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/qatar-bets-cheap-power-catch-up-gulf-ai-race-2025-12-17\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fmiddle-east%2Fqatar-bets-cheap-power-catch-up-gulf-ai-race-2025-12-17%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>It joins massive investments in <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/saudi-ai-firm-humain-unveils-6-gigawatt-data-centre-plan-new-ai-operating-system-2025-10-27\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">Saudi Arabia<\/a>, and Abu Dhabi and Dubai in the <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/media-telecom\/stargate-uae-ai-datacenter-begin-operation-2026-2025-05-22\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">United Arab Emirates<\/a>, as part of the region&#8217;s broader efforts to diversify away from oil revenues.<\/p>\n<p>But while energy advantage is a powerful lure for hyperscalers &#8211; the cloud giants such as Google, Microsoft and Meta driving AI adoption &#8211; analysts say the Gulf&#8217;s ambitions face structural hurdles that go beyond infrastructure.<\/p>\n<p>OBSTACLES<\/p>\n<p>To become significant players in AI, Gulf states must navigate a thicket of challenges: replicating Western-style data governance, securing scarce advanced chips under U.S. export controls, and attracting top-tier talent in a fiercely competitive global market.<\/p>\n<p>These factors, rather than capital alone, will determine whether the region can translate its financial firepower into meaningful influence in the AI ecosystem.<\/p>\n<p>&#8220;The key component there we believe would be Qatar&#8217;s ability to emulate the American policy on data privacy laws &#8230; when you look around the world at the moment, the single biggest hindrance to significant AI deployment is the regulatory piece,&#8221; said Stephen Beard, global head of data centres at Knight Frank.<\/p>\n<p>Qatar has disclosed few details about Qai, but its timing reflects surging demand for AI infrastructure as companies bet on the technology to drive efficiency and cut costs.<\/p>\n<p>&#8220;The compute demand is so massive that any new infrastructure buildout in an energy-abundant Qatar that fronts financing is welcomed news for American hyperscalers &#8230; In this phase of the AI buildout, there&#8217;s room for multiple players,\u201d said Mohammed Soliman, senior fellow at the Middle East Institute in Washington.<\/p>\n<p>However, analysts warn that capturing hyperscaler demand will require sustained investment and policy alignment over many years.<\/p>\n<p>&#8220;We expect $800 billion to be spent on the AI data centre buildout in the Middle East over the next two years,&#8221; said Dan Ives, analyst at Wedbush.<\/p>\n<p>CHEAPER ELECTRICITY<\/p>\n<p>Qatar&#8217;s competitive edge lies in its low-cost electricity, which could offset the region&#8217;s high cooling costs in a desert climate. Emirates NBD notes Middle East PUE ratings &#8211; a measure of data centre energy efficiency &#8211; average 1.79 versus 1.56 globally.<\/p>\n<p>Qatar, Saudi Arabia and the UAE have lower electricity costs compared to the U.S.<\/p>\n<p>Beard estimates Qatar could become a 1.5 to 2 gigawatt market by 2030 if it sustains cheap power and accelerates development. By comparison, Saudi Arabia&#8217;s Humain aims for 6 GW by 2034, while the UAE&#8217;s G42 is building the first phase of a 5-GW AI campus, set to rank among the world\u2019s largest outside the United States.<\/p>\n<p>Qatar&#8217;s progress will be notable if it reaches 500 megawatts by 2029, said Jonathan Atkin, RBC&#8217;s global head of communications infrastructure, adding that utilisation rates will matter as much as capacity.<\/p>\n<p>The UAE currently hosts 35 data centres, Saudi Arabia 20, and Qatar five, according to Emirates NBD. The U.S. is home to more than 5,000.<\/p>\n<p>The UAE has the highest number of current data centers, followed by Saudi Arabia and Qatar<\/p>\n<p>With its sovereign wealth, Qatar brings financial muscle but faces a steep climb against entrenched rivals.<\/p>\n<p>&#8220;I think it is fair to say Qatar\/Doha is the late entrant in a four-horse race,&#8221; said Counterpoint Research director Marc Einstein, referring to Saudi Arabia and the UAE&#8217;s Abu Dhabi and Dubai. &#8220;It does have some advantages&#8230; but in terms of volumes and scale, Qatar&#8217;s neighbours are in a much better position.&#8221;<\/p>\n<p>Beyond infrastructure, compliance is critical. Humain and G42 must adhere to <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/us-authorizes-export-advanced-american-semiconductors-companies-saudi-uae-2025-11-19\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">strict U.S. rules on chip usage<\/a> to secure U.S. tech giant Nvidia&#8217;s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/NVDA.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(NVDA.O), opens new tab<\/a> most advanced Blackwell processors. Qai will need similar assurances to Washington.<\/p>\n<p>&#8220;The U.S. wants a clear line of sight into where every chip is, who is using it, and what networks it touches. That means detailed reporting, on-the-ground checks, strict rules for technicians from high-risk countries &#8230; It&#8217;s something the U.S. will be watching closely over time,&#8221; Soliman said.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Utkarsh Shetti and Federico Maccioni in Dubai. Editing by Andrew Mills and Mark Potter<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Qatar seeks to catch up with Saudi Arabia, UAE in Gulf AI race Qatar&#8217;s cheaper energy, deep pockets&hellip;\n","protected":false},"author":2,"featured_media":238760,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[1628,82519,85421,85419,82793,2786,82703,8833,82499,82758,36586,85715,85716,85717,85718,79,8535,84433,82500,82795,83800,82543,82538,82545,82546,83395,82535,82556,82541,100946,82550,82776,93090,111454,82553,83396,82536,84041,83398,83397,83391,83393,82531,83620,82529,82547,82539,82557,82537,82554,82552,83394,82548,82551,179,100945,18,55396,83627,82578,85420,32356,82503,2004,45748,19,15548,82766,82767,17,82797,84435,84108,88029,93734,87207,82565,82524,82508,1540,82510,87218,83002,5150,82964,76075,82512,83801,84338,111244,84117,82801,753,82999,84119,30150,82534,82533,107,83127,93085],"class_list":["post-238759","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-ae","tag-amers","tag-anlins","tag-anv","tag-arti","tag-asia","tag-asxpac","tag-bh","tag-bact","tag-bisv","tag-biz","tag-bnk","tag-bnks","tag-bnks1","tag-bsvc","tag-business","tag-chip","tag-chip1","tag-cmpny","tag-cprod","tag-cwp","tag-destabn","tag-destabx","tag-destafa","tag-destbnx","tag-destc","tag-destcsa","tag-destd","tag-deste","tag-destef-technology-disrupted","tag-destfun","tag-destg","tag-destgbn","tag-destgfn","tag-destgns","tag-destgro","tag-destlby","tag-destm","tag-destmetop","tag-destmtl","tag-desto","tag-destoil","tag-destousbsm","tag-destousnrg","tag-destoustcm","tag-destpsc","tag-destrast","tag-destrbn","tag-destreulb","tag-destrws","tag-destrwsa","tag-destsof","tag-destu","tag-destucdptest","tag-economy","tag-eftechnology-disrupted","tag-eire","tag-emea","tag-emeae","tag-emrg","tag-erep","tag-fin","tag-fins","tag-fund","tag-gen","tag-ie","tag-infra","tag-invbis","tag-invm","tag-ireland","tag-itec","tag-itse","tag-meast","tag-measte","tag-mlaisv","tag-mtgfx","tag-mtpix","tag-namer","tag-pol","tag-potus","tag-publ","tag-pve","tag-pxp","tag-qa","tag-regs","tag-sa","tag-sci","tag-secur","tag-semi","tag-sov","tag-swasia","tag-swit","tag-tech","tag-teeq","tag-tglf","tag-tmt","tag-topcmb","tag-topnws","tag-us","tag-wash","tag-xpand"],"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/238759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=238759"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/238759\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/238760"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=238759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=238759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=238759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}