Tencent is pushing into the Middle East's booming cloud market, plotting an aggressive data center expansion that puts it on a collision course with Amazon, Microsoft, and Google. The Chinese tech giant plans to roll out new availability zones across the region over the next 12 to 18 months, banking on a Middle East IT spending surge that Gartner projects will hit $155 billion in 2025—a 9% jump that outpaces global growth. It's a high-stakes gamble for a company desperate to diversify beyond gaming revenue.
Tencent is making its move on the Middle East. The Chinese tech giant just confirmed plans to expand its cloud computing footprint across the region, setting up a showdown with the American hyperscalers who've dominated enterprise infrastructure for years.
Dowson Tong, CEO of Tencent's cloud division, told CNBC the company is "actively" exploring new data center locations across the Middle East, Asia Pacific, and Europe. The timeline? Next 12 to 18 months. The strategy? Leverage Tencent's massive Chinese customer base to crack international markets where Amazon, Microsoft, and Google have long called the shots.
"We do intend to increase our investment in the region and establish a stronger partnership network. And that's all in the plan," Dowson said, though he stopped short of naming specific countries or exact deployment dates.
The timing isn't random. The Middle East has become ground zero for cloud infrastructure investment, with IT spending in the region expected to reach $155 billion in 2025—up nearly 9% year-over-year, according to Gartner analysts. That growth rate beats the global average, driven by ambitious national tech strategies and massive AI buildouts.
Just last year, Nvidia and OpenAI committed to the Stargate AI infrastructure project in the United Arab Emirates, a signal that the region's cloud appetite goes far beyond basic compute needs. Countries like Saudi Arabia and the UAE are pouring billions into becoming tech hubs, not just oil exporters.
