Gulf’s AI Boom Has an Undersea Cable Problem

Gulf AI ambitions depend on something incredibly fragile: few submarine cables through some streams of water that are very stagnant.

Countries like it Saudi Arabia and UAE they have spent billions building AI infrastructure, attracting hyperscalers and positioning themselves as exporters of computing. But as the world transitions from a fossil fuel economy to an AI-driven economy, these data-carrying devices are increasingly vulnerable.

Undersea cables have been used to power the Internet around the world. Now, they are living Geopolitical assets.

Following the escalation of tensions between the US, Israel, and Iran earlier this year, experts warned that regional tensions could threaten the Gulf’s steel reserves. In May, media reports said Iran was considering taking control all seven cables under the sea through the Strait of Hormuz.

Subsea cables carry simulations 95 percent of all countries the amount of data. In the Gulf, the problem is permanent: the region’s main connections to Europe and the US still depend on the limited routes through the Red Sea and the Strait of Hormuz.

The Middle East straddles Europe, Asia, and Africa, making the region one of the world’s most important regions with Internet access.

These days, a broken cable can do more than speed up the internet. It could disrupt the entire AI business model emerging in the Gulf.

In many ways, the Gulf countries are trying to transform the energy economy into the basis of AI – exporting computing power and cloud computing as much as they export hydrocarbons.

For economies in the Middle East, which are poised to become major exporters of computing, the need and reliance on these cables is growing, especially as the hyperscale companies setting up shop in the region want to be more resilient than ever.

Unlike Internet traffic, AI infrastructure relies on the flow of data between hyperscale data centers, cloud providers, and enterprise customers. Even short-term disruptions can have significant operational and financial consequences, making fiber reinforced materials a commercial necessity rather than a luxury.

“Hypercalers and regional carriers are pushing for diversification because their needs have gone beyond bandwidth. Now they need multiple ways to be independent, predict the future, and survive in times of geopolitical crisis,” says Imad Atwi, partner at Strategy & Middle East management firm.

AI Forces Gulf to Rethink Connectivity

The pressure is on. In 2025, two connecting cables Europe to the Middle East and Asia were cut off in the Red Sea, disrupting Internet connectivity across the Gulf for days and costing $3.5 billion in lost jobs.

These developments occurred before AI deployments began to accelerate and data centers began to come online. Now, hyperscalers are demanding consistent standards of consistency across the Middle East that already rely on trans-ocean and transpacific routes. These markets often operate on four or five separate channels to minimize confusion.

The Gulf, by comparison, was more dependent on narrow channels.

“Hyperscalers are now looking for diversification of routes in the Middle East, connecting Gulf-Europe and Europe-Asia across the region,” said Bertrand Clesca, a partner at subsea cable specialist Pioneer Consulting.

For years, land and sea routes across the Middle East struggled to progress due to roadblocks, political instability, and regional conflicts.

Now, many of those same corridors are being rethought as digital necessities.

Atwi describes the multi-faceted process that is emerging across the Gulf. The first part covers the Gulf coast connected through the land corridors of Saudi Arabia, the UAE, and Oman, then towards Europe and Asia through Jordan and the Levant. The second phase could introduce a new submarine system that passes through the area around Egypt and Bab el-Mandeb. The third phase will create a northern corridor through Iraq, Syria, and Turkey.

The New Strategic Corridors on the Internet

Some of the most interesting issues in the region involve countries that have previously seen conflict.

Terrestrial routes, such as those provided through Syria, can support up to 144 fiber pairs compared to 24 in today’s submarine cables, meaning the potential is huge. The downside is that they are above ground, making them more vulnerable to physical disturbances. This is not dangerous.