Tencent cloud computing plans to expand its data centers across the Middle East, betting that regional AI demand, data sovereignty, and state-aligned digital infrastructure will fuel growth as Chinese providers gain ground against US tech giants in the region.
It’s an extension of a shift happening in the Gulf, with governments investing heavily in cloud and AI infrastructure, reassessing technology partners’ alignment with their national strategies.
For Tencent cloud computing, the Middle East is no longer peripheral but a core pillar of its effort to grow China cloud computing capabilities beyond China and accelerate Tencent cloud adoption.
Tencent’s Middle East Push Takes Shape
Tencent’s Cloud Group CEO, Dowson Tong, said the Chinese giant plans to expand its “availability zones,” over the next 12 to 18 months across Asia Pacific, Europe, and the Middle East as part of Tencent cloud computing broader international roadmap.
In the Middle East, Tencent is “actively” exploring building new data centers to support cloud customers through hybrid cloud solutions tailored to local requirements.
“We do intend to increase our investment in the region and establish a stronger partnership network. And that’s all in the plan,” Tong told CNBC, declining to specify exact countries or timelines, underscoring Tencent’s ambition to evolve into a regional cloud provider.
Tencent already operates an availability zone in Saudi Arabia, where it serves clients including Keeta, the international food delivery arm of Meituan, as well as gaming companies using its Saudi-based infrastructure, reinforcing the Tencent cloud computing position in China cloud computing expansion efforts.
Further expansion would place Tencent in more direct competition with Amazon, Microsoft, and Google, all of which have built significant cloud footprints across Bahrain, the UAE, and Saudi Arabia, while Tencent positions itself as a sovereign cloud partner aligned with national priorities.
The timing is deliberate.
Gartner forecasts IT spending in the Middle East and North Africa will reach $155 billion in 2025, nearly 9% year on year, outpacing global growth. Significant AI infrastructure announcements, such as the UAE’s Stargate project with Nvidia and OpenAI, highlight the region’s aspiration to be a global computing hub for Chinese cloud global players.
Why Chinese Cloud Firms Are Gaining Traction
Tencent’s strategy mirrors a wider approach adopted by Chinese cloud providers, who are reshaping the region’s digital infrastructure by aligning closely with government priorities rather than competing purely on technical benchmarks, often emphasizing hybrid cloud solutions over pure public cloud.
“Having strategic partnerships with government entities… ensures compliance with local data laws,” said International Data Corporation (IDC) director of cloud research for Europe, the Middle East and Africa (EMEA), Manish Ranjan.
Ranjan also highlighted that Chinese cloud providers have turned regulation into a competitive advantage in sectors like finance, healthcare, and smart cities tied to China cloud computing growth.
Tencent formally entered the regional cloud market at the LEAP 2024 event by announcing its Saudi Cloud Region, emphasizing the benefits of latency, sovereignty, and its alignment with the objectives of Vision 2030. Its emphasis on finance, media, and gaming is a response to increasing demand for localized AI and cloud services powered by Tencent cloud computing.
Trust and flexibility are proving just as critical as computing power. “Success in the Middle East depends as much on trust and cooperation as it does on computing power,” an analyst at data center firm Hawk, Luis Bravo, told Rest of World, pointing to the appeal of China cloud computing models.
As Gulf states begin to focus on alignment, hybrid models, and AI that is relevant to their region, Tencent and other Chinese companies are positioning themselves as flexible partners. Although US companies are still the leaders, the power dynamics in the cloud infrastructure of the region are gradually shifting in favor of Tencent cloud computing and the broader ecosystem.
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