{
  "id": 15003552,
  "title": "GCC data centre capacity to triple to 3GW on AI demand, says S&P",
  "url": "https://urgent.news/2026/10/15/gcc-data-centre-capacity-to-triple-to-3gw-on-ai-demand-says-s-p",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-15T21:00:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/735925/business/gcc-data-centre-capacity-to-triple-to-3gw-on-ai-demand-says-sp"
  },
  "original_language": "en",
  "account": "The Gulf Co-operation Council (GCC) region's data centre capacity is set to nearly triple to over 3 gigawatts (GW) within the next five years as countries build out the necessary infrastructure to support artificial intelligence (AI) and cloud services, according to a report by S&P Global Ratings. Saudi Arabia and the UAE are at the forefront of this expansion, together accounting for more than 80% of the anticipated data centre capacity additions by 2030. This growth is fueled by national AI strategies, data localisation mandates, and economic diversification efforts led by these nations. The report also indicates that momentum is growing in other GCC markets, with Qatar's MEEZA securing an 8-megawatt (MW) long-term lease from a global hyperscaler, signaling increased high-density computing demand across the region.\n\nGCC data centres offer significant cost and speed advantages over mature Western markets. Electricity tariffs in the region are between $0.05 and $0.06 per kilowatt-hour (kWh), compared to $0.09 to $0.15 per kWh in the US. Additionally, GCC data centres can establish grid connections within 12 to 18 months, while Western market operators often face waits of four to seven years. The improvement in access to advanced graphics processing units (GPUs) is due to changes in US export control regulations, although power, connectivity, and cooling infrastructure have become the primary development constraints.\n\nTo manage the high power demands of AI workloads and cope with extreme summer temperatures and water scarcity, data centre operators are modifying cooling designs and energy procurement strategies. Rack densities have surged from 16 kilowatts (kW) in 2025 to 27 kW in 2026, prompting a shift from traditional air cooling to liquid cooling systems that can cut on-site water consumption by up to 91%. Geopolitical events, such as damage to AWS data centres in the UAE and Bahrain caused by regional conflict, have highlighted the importance of physical resilience in facility design. Operators are now adopting site dispersion, blast-resistant construction, and underground installations, which can increase capital costs by 5 to 7%.\n\nS&P highlights that the long-term viability of GCC data centres hinges on rigorous execution and clear risk allocation. Projects backed by long-term capacity contracts with creditworthy off-takers offer stable cash flows, whereas speculative developments leave developers vulnerable to demand fluctuations and rapid technological obsolescence. The rating agency emphasizes that projects with committed capacity to creditworthy counterparties provide more predictable future cash flows, while speculative projects leave developers exposed to various risks that could significantly undermine creditworthiness.",
  "summary": "Data centre capacity across the Gulf Co-operation Council (GCC) region is projected to roughly triple to over 3 gigawatts (GW) over the next five years as regional economies build out the physical com...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}