Why data centres are the Gulf's newest asset class
Khalil
Cloud demand, cheaper solar power and data residency rules are pulling investors into server halls. We look at the numbers founders and funds are watching.
Five years ago, few property investors in the region could tell you what a megawatt of data-centre capacity was worth. Today it is one of the most discussed assets at investment conferences in Riyadh and Dubai.
Data has to live at home
Banks, hospitals and government agencies increasingly need to keep data inside the country. That creates steady demand for local capacity, often on contracts of ten years or more.
Power is the real bottleneck
A large data hall uses as much electricity as a small town. Projects that secure solar or grid capacity early have the advantage, which is why developers now negotiate power before they buy land.
What it means for startups
Local cloud capacity lowers latency and helps young companies meet regulators' rules. Founders building AI products should ask providers where their data sits before they sign.