Dubai, UAE — The MENA region stands at a pivotal moment in its digital transformation journey. Positioned strategically between East and West, it has the potential to become a global leader in digital connectivity and innovation. With increasing investments in AI, edge computing, and sustainable infrastructure, the region’s growth mirrors the rapid evolution of technology worldwide.
In a conversation with TRENDS, Kamel Al-Tawil, Managing Director for MENA at Equinix, provides shares his insights on the key factors shaping the future of digital ecosystems in the region.
What are the key challenges and opportunities in building resilient digital ecosystems in the MENA region to support the growing demand for cloud, edge computing, and AI-driven workloads?
Over the past 25 years, we’ve seen four major inflection points in the digital space. The first was the rise of the internet, making digital accessible to consumers and driving e-commerce. Around 2010, cloud computing became the second, enabling enterprises of all sizes to leverage digital solutions. Then came the digital transformation phase, which accelerated slowly until the pandemic forced rapid adoption across industries. Finally, the emergence of generative AI has pushed digital infrastructure to its limits, particularly in terms of power and sustainability.
In the AI era, data centers have grown exponentially in size, from 2 MW facilities during the early cloud days to 100-200 MW facilities today. This growth brings challenges such as increased energy demands, with global data center consumption potentially rising from 1-3 percent to 20-30 percent. To meet these demands, we must adopt sustainable solutions like renewable energy, energy-efficient practices, and even nuclear power.
How do you see the tech landscape evolving in the next 5–10 years, especially with the rapid adoption of AI and edge computing?
AI is set to become the new internet. Countries are investing billions into AI models and infrastructure, but this comes with challenges. First, there’s the need for power, as the countries with sufficient and sustainable energy will lead AI innovation. Second, we must address ethical concerns around AI use. Finally, talent shortages could hinder the growth of AI ecosystems. Addressing these challenges requires robust infrastructure, clear regulations, and a skilled workforce.
How is Equinix implementing innovative sustainability practices in the region, and how can these efforts set benchmarks for the global data infrastructure industry?
Sustainability is a core priority for Equinix. With over 260 data centers globally, we aim to achieve net-zero carbon emissions by 2030. We’re leveraging renewable energy sources like hydro, wind, and solar wherever possible. In regions lacking renewables, we invest in public-private partnerships to develop sustainable projects and obtain carbon-offset certificates.
We’ve also optimized power use effectiveness (PUE), achieving world-class standards of 1.2–1.4 PUE, even in challenging climates like the Middle East. Innovations like heat reuse further enhance sustainability—for instance, heating Olympic swimming pools in Paris or residential areas in Finland using excess data center heat. These measures demonstrate that sustainability requires diverse solutions tailored to local conditions.
How does Equinix foster collaborations with regional telecom operators, cloud providers, and enterprises to drive innovation and scalability?
Equinix is a global interconnectivity platform, not just a data center company. We build ecosystems where businesses across industries can connect and collaborate. For instance, we host the largest financial ecosystem globally, enabling seamless interaction between financial institutions, trading platforms, and stock exchanges.
In the MENA region, we’ve partnered with telecom operators and regulators to establish international transit telecom zones. These zones bring hundreds of telecom providers together, enabling regional and global connectivity. This model supports multi-cloud and hybrid environments, allowing enterprises to access and interoperate across various platforms, fostering innovation and scalability.
What impact does the UAE’s “free zones for data” model have on cross-border data exchange, and how can it serve as a blueprint for global regulatory frameworks?
The UAE’s regulatory environment has been crucial in advancing the digital economy. The Telecommunications and Digital Government Regulatory Authority (TDRA) has created frameworks facilitating data exchange between operators. Initiatives like interconnecting the UAE’s two major internet exchanges have streamlined operations and attracted digital investments.
This model can serve as a global benchmark, showcasing how regulations can drive interoperability and innovation. Similar efforts are emerging in Oman, Saudi Arabia, and other neighboring countries, enhancing regional connectivity and fostering collaboration among stakeholders.
How can the advancements in digital infrastructure in the MENA region contribute to economic diversification and innovation? How do you envision the future of connectivity, and how can the MENA region play a key role in setting global standards?
Geographically, the MENA region has always been a bridge between East and West. Historically, it was a key player in commerce through the Silk Road, and today, it has the potential to become a hub for the digital revolution. Investments in scalable infrastructure, subsea networks, and neutral digital hubs are critical for advancing global connectivity.
The region is also positioning itself as a major AI hub, supported by investments in AI models and sustainable energy. For instance, the UAE’s nuclear energy initiatives aim to power 25 percent of its grid by 2030, providing clean energy for digital infrastructure. By focusing on sustainability, regulation, and talent development, the MENA region can lead global innovation and connectivity.
As a closing thought, how do you see digital acceleration shaping the future of humanity?
Digital acceleration drives human progress. It transforms how we communicate, work, and live. Generative AI, in particular, promises to reshape societal and business paradigms, making resilient and scalable digital infrastructure essential.
To achieve this, we need strong regulatory frameworks, a skilled workforce, and innovation hubs that drive collaboration. By addressing these elements, we can build a digital future that benefits society and fosters growth globally.
