Tencent Eyes Middle East Cloud Expansion as Regional Tech Spending Accelerates

Tencent is preparing to deepen its presence in the Middle East as part of a broader push to scale its cloud computing business internationally. Dowson Tong, chief executive of Tencent Cloud, told CNBC that the company plans to expand the number of its cloud “availability zones” — designated regions that can host clusters of data centers — across Asia Pacific, Europe and the Middle East over the next 12 to 18 months.

In the Middle East specifically, Tong said Tencent is actively exploring the construction of new data centers to serve regional customers, though he declined to name specific countries or provide a firm timeline. He added that the company intends to step up investment in the region and strengthen partnerships with local players as demand for cloud services grows.

Tencent’s interest comes as the Middle East attracts heavy spending from global technology firms seeking to build artificial intelligence and cloud infrastructure. The region has emerged as a strategic hub for large-scale data center projects, supported by government-backed investment and ambitious digital transformation agendas. Last year, companies including Nvidia and OpenAI committed to major AI infrastructure initiatives in the United Arab Emirates.

According to forecasts by Gartner, information technology spending across the Middle East and North Africa is expected to reach $155 billion in 2025, representing nearly 9% annual growth and outpacing the global average. That growth trajectory has intensified competition among cloud providers.

Tencent has already established an availability zone in Saudi Arabia, giving it a foothold in the region. Any further expansion would place the company in more direct competition with U.S. cloud giants such as Amazon, Microsoft and Google, all of which are expanding aggressively in Middle Eastern markets.

Tong noted that Tencent is already serving customers in Saudi Arabia, including Keeta, the international food delivery arm of Meituan. Gaming companies in the region — an important customer segment given Tencent’s dominance in gaming — are also using its cloud services based in the kingdom.

While gaming remains Tencent’s largest revenue contributor, cloud computing has become a key pillar of its diversification strategy. The company believes it can differentiate itself globally by leveraging relationships with Chinese enterprises that already rely on Tencent Cloud at home and may want consistent infrastructure as they expand overseas.

The Middle East is increasingly central to that strategy. Other Chinese companies are also stepping up their regional presence, reflecting the area’s growing role as a bridge between Asia, Europe and Africa. Lenovo, for example, has established its regional headquarters in Saudi Arabia and is building a manufacturing facility there.

With governments in the Gulf pouring resources into digital infrastructure and AI, Tencent sees an opportunity to position itself early in a market that is rapidly becoming one of the world’s most competitive battlegrounds for cloud and data center investment.