Which companies are expanding in the Gulf?

Oracle plans more data centers in Saudi Arabia and the UAE. Scale AI opened an office at the Dubai International Financial Center, and Snowflake projects $300 million in investment in Saudi Arabia through 2030.

What risks do these expansions face?

The Iran war makes building infrastructure pricier and riskier. Bloomberg economist Ziad Daoud wrote that hardened security adds 5% to 7% to costs.

Who are Snowflake's customers in Saudi Arabia?

Snowflake's customers there include dairy company Almarai and PIF-backed developer Red Sea Global.

AI Business & IndustrySemafor Tech13h agoOct 30, 2026, 22:01 JST

Oracle, Scale AI, Snowflake push Gulf expansion despite risks

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3 Key Points

What happened
Oracle plans more data centers in Saudi Arabia and the UAE, while Scale AI opened an office at the Dubai International Financial Center and Snowflake projects $300 million of investment in the kingdom through 2030.
Why it matters
The expansion shows some AI firms are not shying away from the region despite increased risks to digital infrastructure, with Snowflake also planning two more cloud computing regions and AI training for thousands of Saudis.

WHO IT HITSCloud and data-center operators building in the Gulf face higher security costs, as hardened security adds 5% to 7% to expenses according to Bloomberg economist Ziad Daoud.

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Context & Analysis

The Gulf expansion by Oracle, Scale AI, and Snowflake comes as US artificial intelligence firms are widening their presence in the region. Oracle's data-center plans in Saudi Arabia and the UAE are aimed at meeting rising demand, while Scale AI's Dubai office follows an agreement to work with a G42 unit to develop AI agents. Snowflake, led by former Google Ads chief Sridhar Ramaswamy, projects $300 million of investment in the kingdom through 2030 and counts dairy company Almarai and PIF-backed developer Red Sea Global among its customers there.

So far, data center construction has "barely moved the needle for Gulf economies," according to Bloomberg economist Ziad Daoud. The Iran war makes building that infrastructure pricier and riskier, with hardened security adding 5% to 7% to costs. Still, it appears there is willingness to absorb the new premium, suggesting the companies see enough demand to justify the added expense.

FAQ

Which companies are expanding in the Gulf?: Oracle plans more data centers in Saudi Arabia and the UAE. Scale AI opened an office at the Dubai International Financial Center, and Snowflake projects $300 million in investment in Saudi Arabia through 2030.
What risks do these expansions face?: The Iran war makes building infrastructure pricier and riskier. Bloomberg economist Ziad Daoud wrote that hardened security adds 5% to 7% to costs.
Who are Snowflake's customers in Saudi Arabia?: Snowflake's customers there include dairy company Almarai and PIF-backed developer Red Sea Global.

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