Ali Raza

UAE to spend up to €50 billion to build an AI campus, in France

It's expected most of this investment would go towards a 1GW data centre and

Digital and AI Minister Clara Chappaz said France has identified 35 locations that could be used to build out new data centers with fast-track approvals

⏺ The footprint of the GCC nation's AI and cloud initiatives is beginning to spread far beyond the region

✳️ How does this compare to what's happening in-region?

→ Armada, aramco digital, and Microsoft: Deploying AI-powered Edge data centers in Saudi Arabia, backed by $100M+ in funding
→ OpenAI and MGX: In talks for $40B to support AI development & Stargate AI infrastructure
→ MIS - Al Moammar Information Systems Co. and SDAIA | سدايا: Signed SAR 58.7M ($15.7M) contract to enhance AI network & software services over 36 months
→ Google Cloud: Investing $2B in Riyadh cloud region to drive AI innovation, cloud adoption, and data sovereignty
→ Nestlé and Dubai AI Campus: Signed a strategic AI partnership to drive innovation in product development & consumer insights
→ Oxagon: In talks to build a 1GW AI data center, with an initial 400MW phase expected in 2024
→ NEOM and ezditek: Established $500M ZeroPoint DC joint venture, with 51% Neom ownership, to develop data centers
→ Oracle and NEOM: Oracle named first hyperscale tenant in Neom’s AI-driven data center infrastructure
→ TONOMUS: Inaugurated 18,000 sqm data center in July '23
→ Vertiv: Showcasing AI-driven cloud & Edge solutions, including Vertiv™ SmartCabinet ID at LEAP 2025
→ Riyadh Air | طيران الرياض and Accenture: Developing the world’s first fully cloud-based airline, with AI-driven cybersecurity
→ Dubai Electricity & Water Authority - DEWA: Unveiled a $1.9B smart grid upgrade to Dubai's utility infrastructure in Dec '24
→ SAUDI AIRLINES and Accenture: Launching GenAI-powered digital platform for personalized travel booking
→ ST Engineering and Lusail Real Estate Development Company: Signed $60M contract to implement AI-powered Smart City OS in Lusail
→ Riyadh Air | طيران الرياض Air and Artefact: Signed a strategic partnership to build AI-powered data analytics & guest experience solutions
→ Ooredoo Group, Infobip, and Microsoft: Launched AI Hub for AI-driven messaging & customer interaction in Qatar

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The GCC's adoption, transformation and subsequently - investment in AI and digitally enabled societies, is happening from within

57% of family businesses stated digital transformation is a top priority in the next 2 years - PwC report

✳️ The shift is happening within and now spreading to partnerships across the globe

Saudi Arabia's Kingdom Holding Company just invested $400M in xAI but - is the Middle East actually a contender in the global AI race?

⏺ We all love a piece of Elon. Makes for good headlines.

This just closed at a $6B valuation along with Qatar Investment Authority and Oman Investment Authority

But what else is happening in this space?

✳️ Here’s a snapshot of AI investments in the region:

→ Wa'ed Ventures allocated additional $100 million towards AI investments, including funding for Rebellions Inc. and aiXplain

→ Project Transcendence: A $100B AI initiative to build data centers, support startups, and develop Arabic-language AI models in Saudi Arabia

→ GAIA AI Accelerator secured a $1B pledge towards building an accelerator to support AI startups in Saudi Arabia

→ Presight acquired a 51% stake in AIQ, in partnership with ADNOC Group, valuing the company at $1.4B

→ Khazna Data Centers building a 100MW AI-ready data center in Ajman and expecting to expand overall capacity to 850MW by 2029

→ Kingdom Holding Company invested $400M into xAI

→ NEOM invested $100M in Pony.ai, JV to establish autonomous vehicles and AI infra

→ aramco digital collaborating with Groq and Cerebras Systems to build AI infra, including the world’s largest inferencing data center

→ Google AI Hub initiative expected to contribute up to $71B to Saudi economy with a focus on Arabic-language AI solutions

→ SCAI | سكاي and SMC الوسائل established adtech JV leveraging AI to redefine digital advertising solutions

→ MGX AI investment firm targeting $100 billion in AI infrastructure and related technologies

→ Qatar AI Incentive Package: A $2.47 billion initiative including Al-Fanar Arabic AI project and “Start in Qatar” program

→ G42 received $1.5B investment from Microsoft

→ QIA invested $125M in Cresta, led the round supporting GenAI for contact centres

→ Ooredoo Group and NVIDIA partnering to deploy Nvidia AI processors in 26 data centers and investing $1 billion to expand capacity

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⏺ To build industrial dominance in any segment you drive development through:

1) Investment
2) Knowledge
3) Partnerships
4) Policy
5) Innovation
6) Export
7) Brand

I've shared my thoughts and research on the Saudi progress of development in this space on several occasions

⏹ But when you aggregate what's happening across the GCC region, it shows a concentration of highly motivated public entities and rapidly growing private sector participation - to activate each of the layers I mentioned above

We'll find out the outcome of this forward momentum in the years to come.

✳️ What're your thoughts?