Quick Look:
- NVIDIA to Supply AI GPUs: NVIDIA will supply AI GPUs to Ooredoo for data centers in five Middle Eastern countries, enhancing digital infrastructure.
- Ooredoo’s $1 Billion Investment: Ooredoo commits $1 billion to expand its data center capacity by 20-25 MW, tripling it by the decade’s end.
- Competitive Edge: This deal positions Ooredoo ahead of regional competitors in AI services, offering unique capabilities 18-24 months ahead of others.
At DTW24 Ignite, TM Forum’s event in Copenhagen, NVIDIA announced a pivotal deal with Ooredoo. The company plans to integrate advanced AI technology into data centers across five Middle Eastern countries. This strategic partnership aims to bolster the region’s digital infrastructure amidst stringent US sanctions.
NVIDIA Eyes Export License to Supply AI GPUs to the Middle East
NVIDIA, a cutting-edge AI and high-performance computing (HPC) GPU-producing company, has recently faced challenges due to US-imposed sanctions. The restrictions on the export of its most advanced chipsets to China and specific Middle Eastern nations have largely affected the company’s profitability. Despite these limitations, NVIDIA is optimistic about securing an export license that would allow it to supply AI GPUs to Middle Eastern telecom companies, thereby mitigating the impact of these sanctions.
Ooredoo to Invest $1B in AI-Driven Data Centers, Tripling Capacity
On the other hand, Ooredoo, a leading telecommunications company, has committed to investing $1 billion to enhance its data center capacity by 20-25 megawatts (MW). Currently, Ooredoo operates with a capacity of 40 MW. The company plans to triple this capacity by the end of the decade. This strategic move will position Ooredoo at the forefront of AI-driven services in the region. Furthermore, the collaboration will initially cover Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives. As a result, Ooredoo will be the first in the Middle East to offer NVIDIA-powered services, particularly in generative AI applications.
Ooredoo has restructured its operations to strengthen its competitive edge by separating its data centers into distinct entities. Additionally, the company is in the process of spinning off its undersea cables and fiber network into another independent entity. This strategic segmentation aims to streamline operations and enhance focus on each sector’s growth potential.
Ooredoo to Lead AI Services with 18-24 Month Competitive Edge
While the financial specifics of the deal remain undisclosed, the implications are significant. For Ooredoo, this partnership augments its capacity and cements its leadership in offering advanced AI services ahead of regional competitors. Their business-to-business (B2B) clients will gain access to services that their competitors may not be able to offer for another 18 to 24 months. This head start will provide a substantial competitive advantage in the burgeoning AI market.
NVIDIA-Ooredoo Deal to Transform Middle East’s Digital Landscape
The US sanctions aim to curb the flow of sophisticated AI technology to China and certain Middle Eastern nations, thereby preventing Chinese firms from gaining access to cutting-edge innovations. However, NVIDIA’s confidence in obtaining the necessary export license underscores the importance of these technologies to the development of digital economies in the Middle East.
The region is poised for a technological transformation as Ooredoo ramps up its data center capacity and integrates advanced AI solutions. The success of this initiative will largely depend on the availability of the GPUs and the demand from Ooredoo’s clientele. Hence, should these elements align, Ooredoo could spearhead a new era of AI-driven services in the Middle East, setting a benchmark for other telecom companies to follow.
