Nvidia Eyes Middle East Expansion With Qatar's Ooredoo Amid US AI Export Curbs

Nvidia has entered into an agreement to implement its artificial intelligence technology at data centres owned by Qatari telecoms group Ooredoo in five Middle East countries, according to Ooredoo's CEO, Reuters reported. This deal represents Nvidia's initial large-scale deployment in a region where the US has restricted the export of advanced chips to prevent Chinese firms from accessing the latest AI technology through Middle Eastern nations.

Ooredoo will be the first company in the region to offer clients in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives direct access to Nvidia's AI and graphics processing technology. This move is expected to enhance Ooredoo's ability to assist customers in deploying generative AI applications, as stated by Nvidia's senior vice president of telecom, Ronnie Vasishta.

Image Courtesy: Ooredoo

Ooredoo's CEO, Aziz Aluthman Fakhroo, mentioned that their business-to-business clients will gain access to services that their competitors might not have for another 18 to 24 months. The companies did not reveal the financial details of the deal, which was signed during the TM Forum event in Copenhagen on June 19.

The specific type of Nvidia technology to be installed in Ooredoo's data centres will depend on availability and customer demand. Although Washington permits some Nvidia technology exports to the Middle East, it restricts the export of the company's most advanced chips.

Expansion Plans and Investments

Ooredoo is investing $1 billion to increase its regional data centre capacity by an additional 20-25 megawatts, adding to its current 40 megawatts. The company aims to nearly triple this capacity by the end of the decade. Fakhroo also noted that Ooredoo has separated its data centres into a distinct company, following a similar strategy last year when it created the Middle East's largest tower company in collaboration with Kuwait's Zain and Dubai's TASC Towers Holding.

Additionally, Ooredoo plans to separate its undersea cables and fibre network into a standalone entity. This strategic move aligns with their broader goal of enhancing infrastructure and service offerings across the region.

This partnership between Nvidia and Ooredoo signifies a significant step in bringing advanced AI capabilities to the Middle East. It highlights Ooredoo's commitment to investing in cutting-edge technology and expanding its service capacity for regional clients.