Saudi Arabia: A Global Investment Powerhouse – Insights from Kevin O’Leary

Saudi Arabia’s Vision 2030: Transforming the Investment Landscape

O’Leary’s presence in Riyadh is no coincidence. In an era where economic stability, transparency, and opportunity drive global investments, Saudi Arabia has positioned itself as a prime destination for growth. With a government-led vision to diversify beyond energy, the Kingdom is attracting significant interest, particularly in real estate and infrastructure.

“When you’re transforming an economy, it requires a tremendous amount of highly trained people, capital, and technology,” O’Leary notes. “Saudi Arabia, along with the UAE, is leading the charge in attracting global investment.”

As AI-driven industries and data dependency surge, one sector stands out as the most lucrative and essential: data centers.

The Rise of Data Centers: A Transformative Asset Class

Data centers are rapidly becoming the backbone of the global economy. The demand for data storage and processing power is insatiable, with a current global need of 30 gigawatts and only 5 gigawatts of active projects under development.

Just two years ago, a 100-megawatt data center was considered massive. Today, developers are scaling up to one-gigawatt projects, requiring investments of $4 billion and a workforce of 400 engineers over a two- year period.

“Data centers are the backbone of AI,” O’Leary emphasizes. “There is no AI without data centers, and the demand is only going to increase.”

One of the biggest constraints in data center development worldwide is access to power. In many developed markets, energy supply limitations and policy roadblocks hinder progress. The United States, for instance, faces an emerging energy crisis, with local governments reluctant to approve massive power infrastructure projects due to the financial burden on residents.

“If you walk into any power authority today and request a gigawatt, they have never dealt with such a demand before,” O’Leary explains. “The cost of upgrading infrastructure falls on the local ratepayer, making large-scale developments politically challenging.”

In contrast, Saudi Arabia boasts an abundance of energy from multiple sources, making it a highly attractive destination for investors looking to build large-scale data centers. This gives it a strategic advantage over other markets constrained by power shortages.

The Crypto Factor: A New Era for Digital Assets

Beyond traditional real estate investments, the evolving regulatory landscape for digital assets is also driving economic shifts. With upcoming political changes in the U.S., pro-crypto policies are expected to gain traction, leading to increased adoption of digital payment systems and tokenization. Middle Eastern markets, particularly in Abu Dhabi, are emerging as global hubs for regulated cryptocurrency exchanges, reinforcing the region’s leadership in financial innovation.

At the core of this transformation lies the increasing demand for data centers. As cryptocurrency adoption grows, so does the need for high- performance computing infrastructure to support blockchain networks, digital transactions, and tokenized assets. The rising interest in regulated exchanges and institutional crypto investments is fueling a parallel surge in data center developments, particularly in regions with abundant power resources.

Real Estate Investment Beyond Data Centers

While O’Leary is heavily focused on data centers, he also acknowledges other high-potential real estate sectors. He compares the rise of data centers to past investment cycles in climate-controlled storage, where cap rates declined from 11% to 3.5% as the sector matured. The returns in data centers, however, surpass anything he has seen in his investment career.

“Developers who understand this space are in a unique position,” he states. “There are only about 25 teams globally capable of executing these projects, and demand is outpacing supply.”

O’Leary himself is actively securing land in strategic locations to capitalize on this demand.

“I’m locking up land around Sweet Gas, wherever I can find it,” he reveals. “It doesn't mean I've solved the problem. But you can't start any project without land.”

Navigating the Future of Global Investment

The coming years will be defined by strategic investments in energy, infrastructure, and digital finance. Investors who understand the intersection of these industries will be well-positioned for success. Saudi Arabia’s commitment to economic transformation, its access to power, and its investment-friendly policies make it a focal point for global capital.

Meanwhile, forward-thinking investors are securing land near energy sources, anticipating the rising demand for power-intensive industries like AI and blockchain.

For those looking to stay ahead, the key is clear: secure access to energy, embrace emerging technologies, and work collaboratively with policymakers to drive sustainable growth.

The Impact of Political Stability on Investment

With 2024 marking a record year for global elections, political stability remains a key factor for investors. O’Leary acknowledges the impact of potential political shifts in the U.S., anticipating a less regulated economic environment that could lead to increased market stability and investor confidence.

“For the Middle East, I expect continuity in investment trends,” O’Leary observes. “Saudi Arabia’s push for economic diversification aligns with the broader geopolitical landscape, making it a prime destination for institutional investors.”

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