AI Business
1d ago
Gulf nations invest in data infrastructure amid geopolitical tensions affecting subsea cables
Aug 12, 2026
AI Summary
Countries in the Gulf region, including Saudi Arabia, the UAE, and Qatar, are investing heavily in alternative data routes as traditional subsea cable projects face delays due to rising security risks. Ooredoo Group is leading efforts with its ambitious Fibre in the Gulf project, aiming to enhance connectivity and support the region's AI and cloud ambitions.
- Major tech companies like Meta and Google are delaying subsea cable projects in the Red Sea due to security concerns.
- Gulf nations are investing billions in new subsea and terrestrial fiber routes to support AI and cloud initiatives.
- Ooredoo Group is transforming into a digital infrastructure provider and is investing over $500 million in the Fibre in the Gulf (FIG) subsea cable system, set to be the largest in the GCC, with a capacity of 720 terabits per second.
- The FIG system will connect Asia to Europe while avoiding the Suez Canal and Bab-el-Mandeb strait, addressing increasing demand for data connectivity.
- Ooredoo's CEO noted that geopolitical tensions, including the U.S.-Iran conflict, have complicated the rollout of FIG, particularly in logistics and supply chains.
- The company is focusing on land-based infrastructure and cable purchases to keep the project moving forward despite challenges in the Strait of Hormuz.
- Ooredoo aims to control the entire data infrastructure, investing in landing stations and terrestrial networks, including partnerships with du and Saudi Telecom Company (STC).
- The region is targeting significant growth in data center capacity, with local demand for sovereign cloud and AI solutions remaining strong despite recent security incidents.
- New projects like STC's SilkLink and a consortium's WorldLink aim to build extensive fiber optic networks to enhance connectivity between the Gulf and Europe, targeting hyperscalers and AI applications.
gulfdata infrastructuretelecominvestmentai ambitions