Prime Highlights:
- Tencent plans to increase its cloud services in the Middle East, strengthening partnerships and expanding beyond gaming.
- The company aims to leverage its large Chinese customer base to compete with global tech giants like Amazon, Microsoft, and Google.
Key Facts:
- Tencent already provides cloud services in Saudi Arabia to companies, including Keeta and regional gaming firms.
- IT spending in the Middle East and North Africa is expected to reach $155 billion in 2025, growing nearly 9% year-on-year.
Background:
Chinese technology giant Tencent is planning to expand its cloud computing operations in the Middle East, signaling a major push into international markets. The move comes as countries in the region attract significant investments in data centers and technology infrastructure.
Dowson Tong, CEO of Tencent’s cloud division, told that the company aims to increase the number of “availability zones”, locations designated for clusters of data centers, across Asia Pacific, Europe, and the Middle East over the next 12 to 18 months. While Tong did not provide specific countries or timelines, he emphasized that Tencent is actively exploring opportunities to establish cloud services in the Middle East.
“We plan to increase our investment in the region and strengthen our partnerships,” Tong said, highlighting Tencent’s focus on growing internationally.
The Middle East is becoming an important region for technology, especially for cloud computing and data centers. Last year, companies like Nvidia started big technology projects in the United Arab Emirates. Experts predict that IT spending in the Middle East and North Africa will reach $155 billion in 2025, growing about 9% from last year, which is higher than the global growth rate.
Tencent is already working in Saudi Arabia, providing cloud services to companies like Keeta, the food delivery part of Chinese tech firm Meituan. Gaming companies in the region also use Tencent’s cloud, showing it’s expanding beyond gaming.
Tencent plans to use its large Chinese customer base to compete with Amazon, Microsoft, and Google. Customers who use Tencent’s cloud services in China may also choose the company’s services abroad.
The Middle East is also attracting other Chinese technology firms. Lenovo, for instance, has established its regional headquarters in Saudi Arabia and is building a new manufacturing facility there.
“Investments and initiatives in the Middle East are growing rapidly, and we see significant opportunities for expansion,” said Winston Cheng, Lenovo’s CFO. Tencent’s move reflects the growing importance of the region for Chinese technology companies seeking to expand their global footprint.
