In The Spotlight
Middle East data centres face uncertainties amid rising tensions
Recent geopolitical developments in the Middle East have brought data centres under scrutiny, as a number of facilities were targeted in strikes over the past few days.
Analysts at DC Byte have assessed how the sector may be affected in the coming weeks and months, emphasising that immediate impacts are expected to remain limited.
The region remains a strategically important digital infrastructure market. Gulf states including the UAE, Saudi Arabia and Qatar continue to attract significant investment from cloud providers and hyperscalers, driven by demand for low latency, local data storage and digital transformation initiatives.
Most large-scale data centres in the Middle East are built with resilience in mind. Hyperscale facilities are designed with redundant power, cooling and network systems, controlled perimeters and environmental protections.
Workloads are often distributed across multiple availability zones and regions, allowing operations to continue even if one facility experiences disruption. Analysts note that such resilience has minimised service interruptions in recent weeks.
Nevertheless, the conflict has highlighted the need for ongoing risk assessment. Operators may increasingly consider proximity to potential strategic targets, military infrastructure and airspace coverage when planning new sites.
Emphasis on distributed infrastructure design, cross-country failover and hybrid cloud architectures is expected to grow, though major shifts in resilience strategy are unlikely.
Connectivity remains a key consideration. Network routing constraints can temporarily increase latency during high-traffic periods, prompting stakeholders to prioritise diversified cable routes and network redundancy alongside facility robustness.
Cybersecurity is another focus area, with modern conflicts often incorporating cyberattacks. Operators may now accelerate integration between cyber defence, physical security and operational monitoring to minimise potential disruption.
Supply chains are facing short-to-medium term challenges, with shipping delays and higher costs, particularly through the Strait of Hormuz. Scott Roots, Sales Director EMEA at DC Byte, warns that resource scarcity and alternative routing may affect project timelines and costs.
Despite these pressures, the GCC data centre market remains confident. The region currently has around 2.4GW of qualified capacity, with over 2GW in early stages, and investors have not paused development.
DC Byte CEO Bernard Johnson concludes that the sector’s exposure is largely to operational and planning risks, rather than a fundamental vulnerability, with affected sites representing only 1–2% of the regional market.
New applications are made possible by the coordinated components from Siemens and the power distribution platforms from Rittal. (Image source: Rittal)
Siemens, Rittal partner on AI data centre power
Siemens and Rittal have announced a strategic partnership to develop advanced power distribution solutions for data centres, targeting the growing demands of AI infrastructure.
The collaboration focuses on delivering standardised, scalable systems for the IEC market that can support faster deployment of high-performance data centres while improving efficiency and sustainability. The move comes as AI-driven workloads continue to push power density requirements to new levels, with current racks exceeding 100 kW and projections suggesting this could rise beyond 1 MW by the end of the decade.
To address these challenges, Siemens’ Smart Infrastructure division will work with Rittal, part of the Friedhelm Loh Group, to design integrated solutions that combine power distribution, cooling and heat management.
A key development under the partnership is a new “sidecar” power concept, which places dedicated power racks directly within the data centre’s operational space. This approach allows server racks to be supplied with power more efficiently through a modular and standardised setup. The solution is designed to simplify deployment, improve system reliability and support the rapid scaling of AI computing environments.
Better energy optimisation
The companies said the system aligns with Open Compute Project standards and integrates proven technologies to enable high availability and optimised energy performance. This is expected to be critical as operators seek to maximise computing output while managing energy consumption.
Executives from both companies highlighted the importance of collaboration in addressing the infrastructure challenges posed by AI. They noted that the increasing complexity of data centres requires more integrated and flexible solutions to ensure reliable and continuous operations.
Beyond the initial solution, Siemens and Rittal are also working on standardised low-voltage distribution systems for modular and containerised data centres. Additional efforts include enhancing operational and personnel safety through improved system design and monitoring capabilities.
Early customer projects using the jointly developed technologies are already underway, signalling strong market demand for next-generation data centre infrastructure.
The partnership will draw on Siemens’ expertise in electrical systems and Rittal’s capabilities in enclosure and platform technologies, including its RiLineX and Ri4Power systems. By combining their respective strengths, the companies aim to accelerate innovation in digital infrastructure and support the expansion of AI-driven services.
Looking ahead, both firms indicated that the collaboration could extend beyond data centres into other industrial applications, as demand for efficient, high-capacity power systems continues to grow.
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Saudi Arabia's Minister of Transport and Logistics Services and Chairman of the Board of the Saudi Ports Authority “Mawani”, Saleh bin Nasser Al‑Jasser. (Image source: Mawani)
Saudi launches logistics corridors to boost Red Sea ports
Saudi Arabia's Minister of Transport and Logistics Services and Chairman of the Board of the Saudi Ports Authority “Mawani”, Saleh bin Nasser Al‑Jasser, inaugurated a new logistics corridors initiative aimed at strengthening cargo flows between ports in Saudi Arabia and the wider Gulf region.
The initiative, unveiled during a visit to Jeddah Islamic Port, is designed to create dedicated operational routes for containers and freight redirected from ports in the Kingdom’s eastern region and other Gulf Cooperation Council countries.
The project will support the movement of cargo towards Saudi Arabia’s Red Sea ports, improving supply chain efficiency and strengthening connectivity between regional trade routes and international shipping networks.
The launch event was attended by Suhail bin Mohammed Abanmi and Suliman bin Khalid Al‑Mazroua, alongside officials from government entities and the logistics sector.
According to Al-Jasser, the initiative forms part of the Kingdom’s broader strategy to reinforce its position as a global logistics hub and ensure the stability of supply chains during periods of disruption.
He noted that Saudi Arabia’s transport and logistics ecosystem continues to benefit from strong support from King Salman bin Abdulaziz Al Saud and Mohammed bin Salman.
Strengthening Saudi and GCC logistics
Al-Jasser said ports on the Red Sea coast play an increasingly important role in accommodating cargo redirected from eastern ports and neighbouring Gulf countries. By expanding the operational capacity of western ports, Saudi Arabia aims to maintain the smooth movement of goods and support both regional and international trade.
He also highlighted the resilience of the Kingdom’s transport infrastructure, noting that alternative logistics corridors can be activated quickly when required to maintain trade flows.
During the event, Abanmi explained that the initiative will also strengthen integration between customs and logistics procedures across GCC ports. The Zakat, Tax and Customs Authority is working with other agencies to accelerate cargo clearance processes and facilitate cross-border trade.
Saudi Arabia’s customs network already supports transit services that allow goods to move through the Kingdom via land, sea and air routes to other GCC countries. The system is complemented by bonded warehouse zones where goods can be stored with suspended duties and taxes before being cleared or re-exported.
Al-Mazroua said the corridors initiative reflects close cooperation between government bodies and private sector partners to maintain supply chain continuity and improve cargo flows.
During the visit, Al-Jasser also chaired a meeting at the port’s command and control centre to review vessel traffic and cargo handling operations. He later toured container terminals, logistics parks and re-export facilities at the port.
Jeddah Islamic Port is the largest hub port on the Red Sea and one of the region’s key logistics centres. Ports along Saudi Arabia’s Red Sea coast collectively handle more than 18.6 million TEUs annually, reinforcing the country’s role in global trade networks.
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Project Qatar
Venue:
Doha Exhibition and Convention Centre
Dates:
29 May - 01 June 2023
Website:
