Is there a chance that the Middle East is overlooking an opportunity for artificially intelligent solutions in the realm of clean energy?
In the dynamic landscape of technology and energy, Middle Eastern countries are making significant strides in AI and clean energy investments. Amidst potential geopolitical tensions, these nations are positioning themselves as key players in the global tech industry.
Saudi Arabia, UAE, and Qatar, collectively, have committed approximately $2.5 trillion to major technology investments, including AI technology and data center infrastructure. This substantial investment is not limited to the government sector, as Emirati companies like Abu Dhabi-based Group 42 (G42) and Saudi Arabian entities such as the Saudi Data and AI Authority (SDAIA) have made considerable investments in AI technology and infrastructure over recent years.
One of the notable developments is the launch of HUMAIN, an AI startup backed by the Saudi Arabia's Public Investment Fund (PIF). HUMAIN plans to build up to 1.9 GW of data center capacity by 2030 and has signed deals worth $23 billion with global tech suppliers. Another significant player is G42, which has received an investment of $1.5 billion from Microsoft and will use Microsoft's Azure cloud services for its AI services.
The focus on clean energy is also evident, albeit less pronounced. Clean energy accounts for roughly 15% of total energy investments in the Middle East, lower than in most other developed regions of the globe. However, efforts are being made to change this. ADNOC, Microsoft, and Masdar have described using AI to reduce methane emissions and having Masdar provide renewable energy systems to power Microsoft's data centers in the region.
DataVolt, a Saudi Arabian data center company, is targeting the construction of hyperscale AI campuses in Saudi Arabia, the U.S., and global markets, with a commitment to power the data centers with renewables and green hydrogen. EDGNEX Data Centers, a Dubai-based developer, has AI data centers under development in the Middle East and Europe and recently announced a $20 billion expansion into the U.S. market.
The UAE's commitment to clean energy and AI is further evident in its agreements totaling $200 billion with the U.S., including one to establish a "US-UAE AI Acceleration Partnership" and a five GW data center campus. Qatar, too, has devoted $2.5 billion to AI projects as part of its Digital Agenda 2030 and inked a strategic partnership with U.S.-based Scale AI to explore AI integration into public services.
The Middle Eastern countries are not only investing in technology and infrastructure but also aiming to establish their own AI industries and position the region as a third AI power center, distinct from the U.S. and China. This ambition is reflected in initiatives like Project Transcendence, a $100 billion initiative devoted to creating a tech hub around AI, analytics, and advanced tech in Saudi Arabia.
However, these ambitious plans are not without challenges. Only five of the countries in the region have set net-zero targets, and the makings of a war are escalating in the Middle East, potentially threatening the stability that has helped fuel the growth and investment in the countries' AI and energy infrastructure.
Despite these challenges, the Middle Eastern nations remain steadfast in their pursuit of technological advancement and clean energy solutions. With significant investments from major tech companies like Microsoft and strategic partnerships with global players, the region is poised to make a significant impact in the global tech landscape.
