Data centres churn investments
8 May 2025

Global investment firm KKR appointed retired US Army general and former Central Intelligence Agency director David Petraeus as chairman of its Middle East operations in mid-April.
The move is indicative of the region’s importance as a destination for the firm’s future investments, and capitalises on the strength of the relationships Petraeus has forged with Gulf country leaders during his years as a top US military strategist.
KKR’s most recent commitment in the region entails acquiring a stake in UAE-based Gulf Data Hub (GDH), which operates seven data centres in the UAE and Saudi Arabia. The UAE firm plans to build additional data centre facilities in Kuwait, Qatar, Bahrain and Oman, and KKR has committed to support its $5bn expansion plan.
“[Petraeus' appointment] is a good move on their part. It reinforces the region’s growing status and importance as a data centre investment destination, due to a significant interest in artificial intelligence (AI) deployments,” says a senior executive with an international data centre operator.
KKR’s prior investments in the region include a partnership with Abu Dhabi National Oil Company (Adnoc) in 2019 to create Adnoc Oil Pipelines, and acquiring a portfolio of commercial aircraft from Abu Dhabi’s Etihad Airways in 2020.
The private equity firm’s investment in GDH, however, shows only part of the picture as far as the rapidly evolving data centre investment landscape is concerned.
In March, Abu Dhabi-based critical infrastructure-focused sovereign investor ADQ and US-headquartered power developer Energy Capital Partners agreed to establish a 50:50 partnership to build new power generation and energy infrastructure that will serve the long-term needs of data centres and industrial clusters in the US and selected other international markets.
The two firms plan to make total capital investments of more than $25bn across 25GW-worth of projects. The combined initial capital contribution from the partners is expected to amount to $5bn.
That announcement came a day after UAE National Security Adviser and Deputy Ruler of Abu Dhabi, Sheikh Tahnoon Bin Zayed Al-Nahyan, met with US President Donald Trump at the White House. During the meeting, the UAE is understood to have committed to a 10-year, $1.4tn investment framework for the US.
Tech funds
In the past 24 months, Abu Dhabi and Riyadh in particular have set up funds, sometimes in partnership with global firms, to invest in AI and data centre infrastructure, both domestically and abroad.
Abu Dhabi’s MGX aims to build $100bn in assets under management within a few years, along with US-headquartered and Blackrock-backed Global Infrastructure Partners and Microsoft, the fund's key partners. It is part of the US’ Stargate consortium, which aims to mobilise up to $500bn to build AI infrastructure in the US over the next four years.
In Riyadh, a $100bn AI initiative known as Project Transcendence is expected to invest in data centres, technology startups and other related infrastructure for the development of AI.
US-based Silver Lake announced in March 2025 that, together with MGX, it has become a minority shareholder in state-backed, Abu Dhabi-based Khazna Data Centres, one of the region’s largest data centre operators.
In 2023, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) partnered with US-based DigitalBridge to develop data centres in Saudi Arabia and across the GCC states.
In early 2025, Saudi Arabia-based DataVolt – which is owned by Vision Invest, a major shareholder in Saudi utility developer Acwa Power and a public-private partnership advocate – signed a preliminary agreement to build a data centre in Neom, Saudi Arabia. The $5bn facility, with an initial phase of 300MW, is the first of many such schemes that DataVolt is planning.
Not to be outdone, the founder of Dubai-based private real estate developer Damac pledged to invest $20bn in data centre projects in several US cities earlier this year.
And there is more to the growing – if outsized – number of bidirectional data centre-focused investment flows than meets the eye.
Given the global AI race and mounting competition, investment decisions regarding data centres are moving from a simple, commercial focus to account for complex geopolitical considerations, according to Jessica Obeid, a partner at Dubai-headquartered New Energy Consult.
“As the US weaponises its technological advancements, decisions to invest in US-based data centres hedge against the risks of US export controls, positioning developers in proximity to suppliers, ensuring reliable access to components.
“Yet, this access could become costlier, driven by trade tariff wars, heightened regulations and limited access to grid infrastructure,” Obeid says.
She adds that the GCC is quickly positioning itself as a global digital hub, driven by cost-competitive energy, advanced infrastructure and strong government backing.
“Proximity to reliable power supply at an affordable cost, and speed in licensing processes and grid connections, are increasingly becoming strategic factors in data centre deployment – and the GCC offers that.”
Powering AI strategies
Almost all of the GCC states have formulated AI strategies that aim to improve operational efficiencies, create jobs and support their energy transition and net-zero initiatives.
As a result, analysts expect the region to register double-digit annual growth in data centre construction activities in the next few years.
In a recent update, global consultancy PwC projected that the Middle East data centre capacity could triple from 1GW in 2025 to 3.3GW in five years’ time.
According to data from regional projects tracker MEED Projects, as of April, an estimated $12bn-worth of data centre construction projects are in the planning stage, in addition to over $820m under bid and $7bn under construction.
Li-Chen Sim, associate fellow, at US Middle East Institute, says that AI investments are, on the one hand, “all part of a carefully conceived strategy to … diversify out of a hydrocarbons-driven economy, to create new revenue streams from overseas data centres, build new growth sectors, support business requirements and offer more knowledge-based jobs as opposed to traditional manufacturing from domestic investments”.
On the other hand, AI investments also aim to future-proof the hydrocarbons sector, which Sim expects will continue to be a significant driver of growth, revenue and exports, even as the use of renewable power grows.
However, the ability of Gulf states to execute their plans for leveraging AI to diversify economies and create jobs –and specifically to address youth unemployment – depends on two factors, according to Obeid.
The first factor is the ability of countries to advance their AI goals from infrastructure to capital and partnerships. The second involves the speed with which they can build up adequate human capital and a skilled workforce.
“We will have to see how governments align their educational curricula with the AI policies and electricity infrastructure development,” she says.
Ecosystem investment
AI and data centre investments go beyond the facilities that house thousands of advanced graphics processing units, miles of cables and many cooling systems. To run and execute applications – particularly AI inferencing tasks – data centre facilities require a substantial amount of energy.
Moreover, data centres in the Middle East and North Africa region face elevated environmental risks due to the high ambient temperatures, which increase energy demand for cooling, as well as water requirements.
This presents both a challenge and an opportunity, according to Obeid. "The GCC has an opportunity to advance innovation in energy and cooling technologies. Liquid cooling is necessary for AI workloads, and small modular reactors will become central in these data centres.”
In January, Abu Dhabi’s Emirates Water & Electricity Company (Ewec) appeared to show the way with a plan to build a round-the-clock solar photovoltaic (PV) plant combined with a battery energy storage system (bess) facility.
The 5.2GW solar PV and 19 gigawatt-hour bess plant is expected to deliver renewable power as baseload, and UAE President Sheikh Mohamed Bin Zayed Bin Sultan Al-Nahyan has said that the project will help power advancements in AI and emerging technologies, and support the delivery of the UAE National AI Strategy 2031 and 2050 Net Zero initiative.
Sim agrees that renewables combined with battery storage is part of the answer when it comes to building sustainable data centres. “Globally, data centres consume about 1% of electricity, and this figure – together with carbon emissions by data centres – is expected to grow significantly.”
He notes that Goldman Sachs Research forecasts that global power demand from data centres will increase 50% by 2027, and 165% by the end of the decade, compared to 2023.
“The other part of the puzzle with regard to sustainability is water consumption by data centres, particularly those in the Gulf, where high temperatures necessitate even more cooling measures.
“Singapore, for instance, has pioneered integrated water systems that recycle treated wastewater for reuse – and this circular water model could be an option for data centres in the Gulf, instead of using expensive desalinated water,” says Sim.
As things stand, the GCC can play a key role in the advancement of these and other technologies, along with efficiency measures and the optimisation of server utilisation through AI applications such as digital twins, says Obeid.
This is just as well, since the region appears to be on the cusp of a boom in inbound and outbound investments that will build data centre capacity abroad and closer to home.
“We are at a pivotal moment for innovation, where the intersection of digital advancements and energy innovation could position the GCC as a global leader, shaping the future of sustainable digital infrastructure,” concludes Obeid.
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Contractors have submitted bids to Saudi Aramco subsidiary Aramco Gulf Operations Company (AGOC) for a project to build an onshore gas processing plant in Saudi Arabia’s Khafji that will draw and process gas from the Dorra offshore gas field, located in waters of the Saudi-Kuwait Neutral Zone.
MEED previously reported that AGOC had divided the engineering, procurement and construction (EPC) on the Khafji gas plant project into seven packages, and issued the main tenders for those last year.
Contractors were initially set deadlines of 24 October for technical bid submissions and 9 November for commercial bids. AGOC later extended the bid submission deadline to 22 December, and then until 22 April. A final deadline of 30 April was set, with contractors submitting bids by that date, according to sources.
The seven EPC packages cover works including open-art and licensed process facilities, pipelines, industrial support infrastructure, site preparation, overhead transmission lines, power supply systems and main operational and administrative buildings, with their breakdown as follows:
- Package 1 – Open-art facilities
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- Package 3 – Industrial support facilities
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- Package 5 – Site preparation
- Package 6 – Overhead transmission lines plus power supply (from Saudi Electricity Company)
- Package 7 – Headquarters complex
Saudi Arabia and Kuwait have been pressing ahead with their plan to jointly produce 1 billion cubic feet a day (cf/d) of gas from the Dorra gas field.
The two countries have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, they have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.
Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.
The Khafji gas plant project is one of three multibillion-dollar projects launched by subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation (KPC) to produce and process gas from the Dorra field that has advanced in recent months.
Dorra field facilities project
Al-Khafji Joint Operations (KJO), which is jointly owned by AGOC and KPC subsidiary Kuwait Gulf Oil Company (KGOC), has divided the scope of work on the Dorra field facilities project into four EPC packages – three offshore and one onshore.
India’s Larsen & Toubro Energy Hydrocarbon (L&TEH) won the contract for package one of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines. The contract awarded by KJO to L&TEH is estimated to be valued at $140m-$150m, MEED reported in October.
Additionally, Italian, Indian and Spanish contractors have emerged as the lowest bidders for the other three EPC packages that form part of the Dorra facilities project.
A consortium of Italian contractor Saipem and L&TEH is understood to have submitted the lowest bid for offshore packages 2A and 2B, according to sources. The only other consortium understood to have submitted bids for packages 2A and 2B comprises Abu Dhabi-based NMDC Energy and South Korea’s Hyundai Heavy Industries.
The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables.
Spanish contractor Tecnicas Reunidas is understood to have emerged as the lowest bidder for onshore package three, sources told MEED. Package three covers the EPC of onshore gas processing facilities.
KGOC onshore processing facilities
The third component of the overall Dorra gas field development programme is a planned onshore gas processing facility to be built in Kuwait, which has been undertaken by KGOC.
KGOC had been progressing with the front-end engineering and design (feed) work on the project, before the destabilising impact of the US-Israel conflict with Iran compelled the operator to put the project on hold, MEED reported in April.
The proposed facility, estimated to be worth $3.3bn, will receive gas from a pipeline from the Dorra offshore field, which is being separately developed by KJO. The complex will have the capacity to process up to 632 million cf/d of gas and 88.9 million barrels a day of condensates from the Dorra field.
The facility will be located near the Al-Zour refinery, owned by another KPC subsidiary, Kuwait Integrated Petroleum Industries Company.
A 700,000-square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility and discussions regarding survey work are ongoing. The site could require shoring, backfilling and dewatering.
The onshore gas processing plant will also supply surplus gas to KPC’s upstream business, Kuwait Oil Company, for possible injection into its oil fields.
Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the plant’s acid gas removal unit and sulphur recovery unit, respectively.
France-based Technip Energies has carried out a concept study and feed work on the entire Dorra gas field development programme.
Progress has been hampered by a dispute over ownership of the Dorra gas field. Iran, which refers to the field as Arash, claims it partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development. Kuwait and Saudi Arabia maintain that the field lies entirely within their jointly administered Neutral Zone – also known as the Divided Zone – and that Iran has no legal basis for its claim.
In February 2024, Kuwait and Saudi Arabia reiterated their claim to the Dorra field in a joint statement issued during an official meeting in Riyadh between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.
Since that show of strength and unity, projects to produce and process gas from the Dorra field have gained momentum.
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Teams prepare bids for Riyadh East sewage treatment plant8 May 2026

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In 2024, Sharakat prequalified 53 companies that could bid for the Riyadh East ISTP, part of seven planned ISTP projects it said it would procure between 2024 and 2026. The request for proposals was issued last October.
WSP is the technical adviser and KPMG Middle East is the lead and financial adviser on the project.
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ISTP plans
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These are designed to add about 521,450 cm/d of additional treatment capacity across the kingdom.
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Saudi Arabia tenders Jeddah-Mecca highway PPP8 May 2026

Saudi Arabia’s Roads General Authority (RGA) and the National Centre for Privatisation & PPP (NCP) have tendered the contract for the development of the Jeddah-Mecca highway project.
The tender was issued on 19 April, with a bid submission deadline of 19 August.
The scope of the tender is split into two sections: development of motor service areas (MSA) and highway services.
Under the MSA component, the company will develop, permit, finance, design, engineer, procure, construct, complete, test, commission, insure, operate and maintain three MSAs along the highway.
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The highway services component will include insurance, operation and maintenance of highway assets for 10 years.
The 64-kilometre (km) Jeddah-Mecca highway has four lanes in each direction. The construction works on 51km are complete, while the rest is under construction and scheduled for completion in 2027.
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The expression of interest notice for the project was first issued in October 2024, as MEED reported.
The project is one of four planned highway schemes in the kingdom’s privatisation and public-private partnership (P&PPP) pipeline.
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Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16731199/main.jpg -
US sanctions Iraq’s deputy oil minister8 May 2026
The US has sanctioned Iraq’s Deputy Oil Minister Ali Maarij Al-Bahadly, in another blow for the country’s oil and gas sector.
In a statement released by the US Treasury, it said that he “abuses his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq”.
The US Department of the Treasury’s Office of Foreign Assets Control (Ofac) has also designated three senior leaders of the militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq.
In its statement, it said that the US will continue to hold these groups and other militias in Iraq, such as Kata’ib Hizballah, accountable for their attacks against US personnel and civilians, diplomatic facilities and businesses across Iraq.
Secretary of the Treasury, Scott Bessent, said: “Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people.”
He added: “Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners.”
Ofac said that it designated Iraq’s deputy minister of oil on 7 May because he had been “instrumental in facilitating the diversion of Iraqi oil products to benefit known Iran-affiliated oil smuggler Salim Ahmed Said, as well as Iran-backed terrorist militia Asa’ib Ahl Al-Haq (AAH)”.
It added: “For years, Maarij has used his official positions, first as the head of the Iraqi parliament’s oil and gas committee, and then within the Iraq Ministry of Oil, to enrich Said, AAH, and by extension, Iran.”
The US Treasury said that it designated Said in June 2025 for running a network of companies selling Iranian oil falsely declared as Iraqi oil to avoid sanctions.
In its statement, it said: “Integral to this operation was Said’s ability to obtain favoured access to Iraqi oil and procure forged documentation from Iraqi government officials, legitimising illicit oil.
“To that end, Said was responsible for bribing complicit officials in the Iraqi government, as well as reportedly installing Maarij in his official position.”
Since 2018, Maarij has held several positions in Iraq’s Oil Ministry, including head of the licensing and contracts office, deputy minister, and acting oil minister.
The US Treasury said that, in his official capacities, Maarij enabled Said to illicitly procure oil products by granting exportation rights to Said’s companies.
It claimed that Maarij authorised trucking several million dollars’ worth of oil a day from the Qayarah oil field to VS Oil Terminal in Khor Zubayr for export.
The US sanctioned VS Oil Terminal in July last year.
The US Treasury said that VS Oil oversaw the mixing of Iranian oil with Iraqi oil before being shipped to market.
It also said that Maarij is also responsible for falsifying documentation on the provenance of oil for Said’s network, enabling it to be smuggled to market disguised as purely Iraqi oil.
Neither Iraq nor Iran has responded to the announcement of the new sanctions.
The sanctions were announced as the US and Iran battle over control of the Strait of Hormuz, which has seen significant disruption to shipping since the US and Israel started their war with Iran on 28 February 2026.
Iraq’s oil and gas sector is currently going through a crisis due to the disruption to shipping through the Strait of Hormuz, which has caused the country’s oil exports to collapse.
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Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16729987/main.png -
Sabic registers profit in first quarter of 20268 May 2026
Saudi Basic Industries Corporation (Sabic) returned to profit in the first quarter of 2026, posting a net income of SR13.2m ($3.52m) compared to a SR1.21bn loss a year earlier.
The Saudi petrochemicals giant posted adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of SR4.15bn for the three months to 31 March, up 25% from the previous quarter.
The company’s revenue fell 6% quarter-on-quarter to SR26.15bn ($6.97m).
Adjusted net income was recorded in at SR816m, compared to a loss in the previous quarter, while adjusted earnings per share stood at SR0.27.
Adjusted earnings before interest and taxes rose to SR1.45bn, an increase of SR1.01bn from the prior quarter.
Sabic said its net position shifted to a debt of SR2.77bn at the end of March, from a net cash position of SR3.61bn at the end of 2025.
“Our transformation journey continues to deliver performance improvements that unlock greater value for our shareholders. We realised $220m at the Ebitda level on a recurring basis during the first quarter of 2026, in line with our planned improvement rate. This keeps us on track towards our cumulative 2030 annual target of $3bn, consisting of $1.4bn in cost excellence and $1.6bn in value creation,” Sabic CEO Faisal Alfaqeer said.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16719476/main1840.jpg