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.