Why the Middle East's AI Plans Depend on Underwater Cables Under Threat

Countries in the Middle East are investing billions of dollars in artificial intelligence infrastructure, hoping to become a hub for computing power that serves customers across Europe, Africa, and Asia. But there's a problem: almost all the data these systems need to send flows through undersea cables that run through some of the world's most unstable regions.

Recently, Iran mentioned it might try to control seven undersea cables that pass through the Strait of Hormuz, a narrow waterway between Iran and Oman. That threat highlights a real vulnerability—the Middle Eastern countries betting on AI depend on routes through the water that could be disrupted.

Building the Hub

Saudi Arabia and the UAE are pouring money into AI data centers and computing infrastructure. The appeal is clear: their location is roughly halfway between Europe and Asia, making them a natural place for companies to put computing equipment if they want to serve customers on both sides of the world quickly.

Microsoft's partnership with a company called G42, announced in April 2024, shows how serious these plans are. Microsoft is investing in the company and offering its AI services through G42. The partnership aims to bring advanced AI tools to businesses in the Middle East, Central Asia, and Africa, in fields like finance, healthcare, and energy.

A telecommunications company called Ooredoo is also building key infrastructure. It now runs 26 data centers across the region and plans to spend about $1 billion to expand its computing power. Ooredoo also signed a deal with NVIDIA, a major AI chip company, to offer AI computing services.

The Cable Problem

All of this computing infrastructure needs reliable connections to the rest of the world. But the Middle East's AI ambitions depend on undersea cables that pass through risky areas.

About 95 percent of data that travels between continents moves through undersea cables. In the Middle East, much of that traffic is funneled through two narrow maritime routes: the Strait of Hormuz and the Red Sea. If any of those cables break or are deliberately cut, entire regions could lose internet connectivity.

The situation has gotten worse because of ongoing conflicts. Fighting in the Red Sea has already disrupted shipping. According to an analysis by TeleGeography, a research firm that tracks telecommunications, these conflicts are also delaying construction of new cables that could offer backup routes.

What's Being Done

Ooredoo is aware of the problem and is trying to reduce the risk. The company is building a new undersea cable called FIG that will carry data across 1,200 miles with enough capacity for extremely fast connections. It should be ready to use in late 2027.

Ooredoo is also planning to work with another company to build land-based routes that avoid the dangerous sea lanes altogether. Using roads and towers to move data instead of underwater cables would be safer, though these alternatives have their own challenges.

Ooredoo also owns more than 30,000 communication towers across six countries in the region. The company is consolidating these into what it says will be the largest tower network in the Middle East and North Africa.

What This Means

The Middle East's position between Europe and Asia is a genuine advantage for a company looking to place AI infrastructure somewhere central. But that same geography places important cables and equipment in areas where conflict is common.

The advisory firm Strategy& Middle East, among others, has pointed out that the reliance on underwater cables in conflict zones could slow down the region's AI ambitions. AI computing at large scale requires not just powerful computers and good cooling, but reliable, fast connections to the world.

For companies thinking about renting computing power from Middle Eastern data centers, the cable problem adds a new risk to consider. They would need to think carefully about whether these services have backup routes and how long they could work if the main undersea cables stopped functioning.

Here's what's important to understand: these alternative cable projects won't be ready for several years. That means the Middle East's AI infrastructure will remain dependent on underwater cables in conflict zones for a while longer, even as tensions in the region don't show signs of easing.

The broader point is that where AI computing infrastructure gets built isn't just a question of which location is cheapest or has the best cooling. Geography, politics, and the reliability of cables underneath the ocean are now part of the calculation. As AI computing spreads around the world, planners have to think about whether a data center is in a place where it can reliably reach its customers, no matter what happens.

The Middle East has real advantages for building a global AI computing hub. But the region's reliance on vulnerable undersea cables is a genuine constraint that won't ease until alternative routes are in place.