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Nvidia partnered with Qatar telco to deploy AI data centers across the Middle East amid US export control tightening

Mavis Tsai; Jerry Chen, DIGITIMES Asia 0

Credit: DIGITIMES

Qatar-based telecom giant Ooredoo has signed an agreement with Nvidia to deploy thousands of Nvidia Tensor Core GPUs in its AI data centers amid the US's tightening export controls to the region.

This collaboration aims to provide GPU-as-a-Service to government and enterprise customers in several Middle Eastern countries, capitalizing on the growing opportunities in generative AI and accelerated computing.

Ooredoo's CEO, Aziz Aluthman Fakhroo, highlighted that this partnership gives the company exclusive access to Nvidia's technologies ahead of its competitors.

Regional head-start

According to Reuters, Ooredoo believes these B2B customers will gain access to services that their competitors won't have for the next 18 to 24 months.

The company is also investing in the expansion of its data centers. According to Finance Magnates, Ooredoo is making substantial investments to expand its data center capacity by 20-25 megawatts, with plans to triple this capacity by the end of the decade.

This agreement marks Nvidia's first major deployment of AI technologies in the Middle East since the US tightened its export controls on advanced chips in late 2023. However, the specific Nvidia technologies involved have not been disclosed.

Across the Middle East

Ooredoo announced that it will deploy thousands of Nvidia Tensor Core GPUs in its data centers, providing access to Nvidia's latest full-stack AI platform for government, enterprise, and startup prospects in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives.

Ronnie Vasishta, Nvidia's senior vice president of telecommunications, noted that these technologies will enable Ooredoo to assist customers in deploying generative AI applications more smoothly.

The agreement was signed on June 19 at the TeleManagement Forum in Copenhagen, Denmark, but the financial details of the transaction remain undisclosed.

The US restrictions

In October 2023, the US Department of Commerce added several Middle Eastern countries to its list of destinations requiring licenses for exporting advanced chips or chip-making equipment to. According to Bloomberg, in the weeks before late May 2024, the US government either delayed responses or did not respond to applications from chip designers seeking to export AI accelerator products to Saudi Arabia, the UAE, and Qatar.

This delay is partly due to concerns that Chinese entities might acquire chip technology through Middle Eastern countries to enhance their military capabilities.

This agreement with Ooredoo represents Nvidia's first large-scale export of AI technology to the Middle East since the US tightened export controls. Both companies have not detailed the specific technologies involved, with Ooredoo stating that this will depend on availability and customer needs.