# Global data center investment and regional shifts > Developing situation record from CLSTR: https://clstr.news/situations/global-data-center-investment-and-regional-shifts > Updated: 2026-10-27T12:39:00.000Z. Sources: 5. Developments: 2. The global data center landscape is experiencing significant shifts driven by regional economic advantages and geopolitical risks. In the Middle East, the region has emerged as the world’s least expensive area for data center construction, with an average cost of $9.93 per Watt. This cost advantage, fueled by low energy expenses and government support for AI infrastructure, is positioning countries like Saudi Arabia, Qatar, and the UAE as global computing hubs. Concurrently, geopolitical instability has influenced investment patterns elsewhere. The conflict between the US and Iran has increased perceived risks in the Middle East, leading to heightened interest in Malaysia as an alternative data center hub. Major technology firms including Google, Amazon, and Microsoft have already invested in Malaysia, and SoftBank Group Corp’s Masayoshi Son has reportedly selected locations in the country for US$50 billion in technology investments. ## Timeline ### 2026-10-27: Middle East emerges as global leader in cost-competitive data center construction The Middle East is now the most cost-competitive region globally for data center construction, averaging $9.93 per Watt due to low energy costs and strong AI infrastructure investment. 2 sources. https://clstr.news/cluster/middle-east-emerges-as-global-leader-in-cost-competitive-data-center-construction ### 2026-10-27: Malaysia attracts data centre interest amid Middle East conflict Malaysia is emerging as a preferred data centre hub as geopolitical instability in the Middle East drives investors toward more stable Southeast Asian locations. 3 sources. https://clstr.news/cluster/malaysia-attracts-data-centre-interest-amid-middle-east-conflict --- Cite as: Global data center investment and regional shifts. CLSTR, https://clstr.news/situations/global-data-center-investment-and-regional-shifts