In a significant move that marks Nvidia's first major foray into the Middle East, the American technology giant has signed an agreement with Qatari telecoms group Ooredoo to deploy its artificial intelligence technology across multiple data centres in the region.

The partnership, announced on the sidelines of the TM Forum in Copenhagen on 19 June, will see Nvidia's cutting-edge AI and graphics processing technology installed in Ooredoo's data centres across Qatar, Algeria, Tunisia, Oman, Kuwait and the Maldives.

This strategic alliance comes amidst Washington's efforts to curtail the export of advanced US chips to the region, aimed at preventing Chinese firms from accessing the latest AI technology through Middle Eastern countries.

Ooredoo's CEO, Aziz Aluthman Fakhroo, told Reuters that this collaboration would give their business-to-business clients a significant competitive edge. "Our b2b clients, thanks to this agreement, will have access to services that probably their competitors [won't] for another 18 to 24 months," Fakhroo stated.

While the financial details of the deal remain undisclosed, Ooredoo has committed to a substantial investment of $1 billion to expand its regional data centre capacity. The company plans to add 20-25 megawatts to its existing 40-megawatt capacity, with ambitions to nearly triple this by the decade's end.

Ronnie Vasishta, Nvidia's senior vice president of telecom, highlighted that the partnership would enhance Ooredoo's ability to help its customers deploy generative AI applications. However, the specific type of Nvidia technology to be installed will depend on availability and customer demand, as per Ooredoo's statement.

This expansion comes against the backdrop of US export restrictions on Nvidia's most sophisticated chips to the Middle East. Nevertheless, the export of some Nvidia technology to the region remains permissible under current regulations.

The deal also aligns with Ooredoo's broader restructuring efforts. Following its recent creation of the Middle East's largest tower company, Ooredoo has now spun off its data centres into a separate entity and has plans to do the same with its undersea cables and fibre network.

As AI continues to reshape the global technological landscape, this partnership between Nvidia and Ooredoo could potentially accelerate AI adoption and innovation across the Middle East, despite ongoing geopolitical complexities.

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