Qatar (Washington Insider) – Qatar launched Qai with its
$526B sovereign fund and $20B Brookfield JV, aiming for 500 MW by 2029, joining
Gulf AI rivals Saudi Humain, UAE G42; experts: Beard, Soliman, Atkin.
As Utkarsh
Shetti and Federico
Maccioni on Reuters reported, Qatar has launched Qai, a new technology
project supported by the country’s $526 billion sovereign wealth fund and a $20
billion joint venture with Brookfield. They mentioned that the project is the
largest step Qatar has taken into artificial intelligence.
The move follows similar investments by Saudi Arabia, Abu
Dhabi, and Dubai, as Gulf states seek to reduce dependence on oil. Large
technology companies such as Google, Microsoft, and Meta are drawn to the
region because of its low-cost energy, which helps run powerful computer
systems.
“The key component there we believe would be Qatar’s
ability to emulate the American policy on data privacy laws… when you look
around the world at the moment, the single biggest hindrance to significant AI
deployment is the regulatory piece,”
said Stephen Beard, global head of data centres at Knight
Frank.
What challenges will
Qatar face in making Qai a global AI leader?
Experts say that money and infrastructure are not enough.
The Gulf states will also need strong rules for managing data, access to
advanced computer chips despite U.S. export limits, and skilled engineers and
researchers to compete globally.
“The compute demand is so massive that any new
infrastructure buildout in an energy-abundant Qatar that fronts financing is
welcomed news for American hyperscalers … In this phase of the Al buildout,
there’s room for multiple players,”
said Mohammed Soliman, senior fellow at the Middle East
Institute in Washington.
Officials mentioned that clear government policies,
long-term planning, and alignment with global technology standards are needed.
“We expect $800 billion to be spent on the Al data
centre buildout in the Middle East over the next two years,”
said Dan Ives,
analyst at Wedbush.
Emirates NBD reports that data centres in the Middle East
have an average Power Usage Effectiveness (PUE) rating of 1.79, compared with a
global average of 1.56. Analysts, including Beard, say Qatar could become a 1.5
to 2 gigawatt market by 2030 if it maintains cheap power and speeds up
construction.
By comparison, Saudi Arabia’s Humain project targets 6
gigawatts by 2034, and the UAE’s G42 group is building the first phase of a
5-gigawatt AI campus, which would be one of the largest in the world outside the
United States.
Jonathan Atkin, global head of communications infrastructure
at RBC, said Qatar’s growth would be significant if it reaches 500 megawatts by
2029, and he noted that how fully the capacity is used will matter as much as
the total size.
“I think it is fair to say Qatar/Doha is the late
entrant in a four-horse race, “
said Counterpoint Research director Marc Einstein, referring
to Saudi Arabia and the UAE’s Abu Dhabi and Dubai.
“It does have some advantages… but in terms of
volumes and scale, Qatar’s neighbours are in a much better position.”
The UAE currently hosts 35 data centres, Saudi Arabia 20,
and Qatar 5, while the United States has more than 5,000. Capacity alone is not
enough. Companies must follow
international rules. Saudi Arabia’s Humain and the UAE’s G42 must meet U.S.
regulations on advanced chips to use Nvidia’s latest Blackwell processors.
Qatar’s Qai project will also need approval from Washington to access
high-performance chips.
“The U.S. wants a clear line of sight into where
every chip is, who is using it, and what networks it touches. That means
detailed reporting, on-the-ground checks, strict rules for technicians from
high-risk countries … It’s something the U.S. will be watching closely over
time,”
Soliman said.
