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(Bloomberg) — Khazna, a data center developer in the United Arab Emirates, is planning a major expansion in neighboring Saudi Arabia as the oil-rich nations compete to power the artificial intelligence boom.<\/span><\/p>\n \u201cWe\u2019re hoping to get at least 25% of market share there,\u201d Hassan Alnaqbi, Khazna\u2019s chief executive officer, said in an interview at the company\u2019s Dubai headquarters.<\/span><\/p>\n Khazna has identified two locations for data centers in Saudi Arabia, where it competes with several local specialists and telecommunications firms. Alnaqbi also sees startup data center developers active in the market. \u201cNone of them have the experience to handle the hyperscalers, in terms of design, delivery and operation,\u201d he said.<\/span><\/p>\n American cloud-computing giants, or hyperscalers, have increasingly looked to the Persian Gulf for expansion, tapping the region\u2019s ample cheap energy and real estate. Meanwhile, the UAE and Saudi Arabia have made AI infrastructure central to their economic diversification strategy, setting off an expensive race to build warehouses that store servers and cutting-edge chips.\u00a0<\/span><\/p>\n Khazna, which was formed by wealth fund Mubadala, has\u00a0<\/span>said<\/a><\/span>\u00a0it is the largest data center operator in the Middle East and North Africa. In 2022, the company became part of G42, the Emirati tech conglomerate backed by Microsoft Corp. Alnaqbi said Khazna has 71% of the UAE\u2019s current data center capacity and is looking beyond the country after recent funding from Silver Lake and Abu Dhabi fund MGX.<\/span><\/p>\n