Brendan Press, CTO of GBI, explains how Qatar’s rapidly expanding data centre market, driven by AI and cloud demand, is positioning the country as a global digital hub.
Qatar’s data centre market is expanding rapidly, fuelling significant investment in building new data centres and upgrading existing ones to meet the increasing demand for cloud computing, rising adoption of AI, and IoT applications.
In the Gulf Cooperation Council (GCC) alone, the average monthly data consumption is predicted to reach 53 GB per month in 2028, up from 25 GB in 2022 for storage and data processing through enhanced network infrastructure is needed more than ever. This growth is bolstered by the presence of major tech companies and local enterprises migrating to cloud, driving the demand for more advanced and scalable data centre solutions.
The surge in data consumption is a consequence of the nation’s National Vision 2030. This vision, which aims to transform Qatar into an advanced society capable of sustaining its development and providing a high standard of living for its people, places significant emphasis on information and communication technology infrastructure. Data centres are at the heart of this transformation, driving digital innovation, economic diversification, and enhancing Qatar’s global competitiveness.
The shift from superstructures to localised data centres
Historically, data centres were seen as massive superstructures designed to serve entire countries or regions. However, modern data centres are becoming more localised in how they’re developed, designed to meet the specific needs of cities and their surrounding areas. This localised approach not only enhances data accessibility and speed but also ensures greater resilience and adaptability to local demands. For Qatar, this means its burgeoning cities can develop tailored digital ecosystems that support local businesses, healthcare, education, and government services more efficiently.
The trend toward localised data centres is driven by several factors, including the increasing importance of edge computing and its need for low latency. As cities grow and become more connected, the demand for data processing power at the edge – closer to the final workload – increases. Localised data centres reduce the distance data has to travel, improving response times and supporting applications that require real-time data processing, such as autonomous vehicles, smart grids, and advanced medical diagnostics.
Location, location, location
Qatar is an ideal location to house these data centres as it has established a robust legal framework to support its ICT sector. Moreover, Qatar’s abundant sunlight and commitment to renewable energy, particularly solar power, provide a reliable and sustainable energy source, essential for powering the energy-intensive operations of data centres. Recent initiatives, such as the Al Kharsaah solar power plant, expected to produce around 800 MW of power once fully operational, demonstrates the country’s commitment to renewable energy.
Integrating solar power into data centre infrastructure not only offers operational cost benefits but also positions Qatar as a forward-thinking and environmentally responsible location to the wider region. This approach attracts global investors and tech companies looking to establish or expand their data operations in a green and sustainable environment. The operational cost benefits come from reduced reliance on fossil fuels and the stability of energy prices associated with solar power, which can significantly lower the total cost of ownership for data centres.
Qatar’s geographic location at the crossroads of Asia, Africa, and Europe also positions it as a vital hub for cable networks. These networks are crucial for global internet connectivity and data transmission, ensuring high-speed and reliable connections essential for modern data centre operations. Cables provide the necessary infrastructure for data exchange across continents, making Qatar a key player in the global data ecosystem.
Beyond the geographical and environmental advantages, Qatar also offers economic and technological incentives. The government has been proactive in fostering a business-friendly environment through various economic policies and infrastructure projects. These efforts include tax incentives, simplified business procedures, and significant investments in high-speed internet infrastructure, which are critical for data centre operations.
As the nation continues to innovate and invest in its digital infrastructure, it is set to become a central hub in the global data landscape. This evolution will not only support the local economy but also attract international businesses seeking a stable, advanced, and eco-friendly environment for their data operations. Qatar is one to watch.
