A new multimillion-dollar regional data center is set to be built in Bahrain to bolster the digital transformation efforts across the Arab world, according to a state news agency report.

The Arab League’s Arab Federation for Digital Economy (AFDE) has signed a memorandum of understanding with ATDXT LLC, a digital transformation company, headquartered in the UAE to launch the first-of-its-kind data center to focus on localized data protection, enhanced security, and rendering digital transformation solutions. ICT spending in Bahrain is estimated to grow at a compound annual growth rate (CAGR) of 8.6% from US$1.4bn in 2019 to US$2.1bn in 2024, according to a leading data and analytics company.

The data center will serve all member states of the Arab League on supporting both government and private sector entities to host advanced technologies and digital transformation solutions, to improve the competitiveness of Arab economies and foster their integration into the global economy.

These solutions will also be extended locally in Arab league member nations such as the UAE, Oman, Saudi Arabia, Morocco, Kuwait, and Jordan in the first phase with other states to follow soon after.

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Commenting on the development, GS Murthy, founder & executive chairman, ATDXT Group, said, “We are delighted to partner with the Arab League and incubate the first of its many multi-million-dollar regional hubs, in Bahrain. The focus of this initiative will remain to be on digital transformation enablement, that will improve the competitiveness of the Arab nations, and foster their integration into the global economy.”

Meanwhile, Bahrain’s foreign minister Abdullatif bin Rashid Al-Zayani said, “I appreciate the ATDXT Group for choosing the Kingdom of Bahrain to be the digital transformation solutions hub, reflecting the excellence of the investment environment in Bahrain and the many facilities they provide to investors. This partnership will enable us to contribute to the transformation of the digital outlook of the countries of the Middle-East and to continue to provide leading services to our citizens, residents and region as a whole.”

Ambassador Hossam Zaki, assistant secretary-general of the Arab League, said, “The League of Arab States along with the Arab Union is actively promoting the joint Arab strategic vision for the digital economy. I’m confident that this partnership will contribute to strengthening Arab cooperation in the digital world.”

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