MENA’s balancing act: AI growth and sustainable energy solutions

The MENA (Middle East and North Africa) region is poised to establish itself as a significant player in the global digital and artificial intelligence (AI) landscape, anticipated to contribute around $320 billion to its economy by 2030. However, this ambitious growth trajectory raises a pressing question: how can MENA manage its AI expansion while simultaneously pursuing sustainability objectives and avoiding an increased dependence on fossil fuels and overburdening national electricity grids?

The energy demands associated with operating AI datacentres are considerable. Currently, datacentres account for nearly 3% of global electricity usage, a figure projected to rise to 4% by 2030. These facilities, particularly the expansive hyperscale datacentres that power AI systems like OpenAI’s ChatGPT and Google’s DeepMind, are intensive consumers of electricity. They require continuous access to power for extensive computational tasks over prolonged periods and necessitate robust cooling systems, particularly in the Gulf states where ambient temperatures can exacerbate energy needs.

Saudi Arabia exemplifies the region’s increasing electricity consumption, with forecasts indicating that its demand could nearly double in just six years, reaching 120 gigawatts (GW) by 2030. The burgeoning AI sector is a primary driver of this anticipated growth. As countries within MENA, including Saudi Arabia and the UAE, ramp up their AI initiatives, the challenge lies in securing around-the-clock electricity without adversely affecting fuel consumption or environmental targets.

In response to these challenges, small modular nuclear reactors (SMRs) are gaining attention as a potential solution. These compact, reliable nuclear units offer the possibility of powering the burgeoning AI economy in a sustainable manner, thanks to their low carbon emissions and scalability. If successfully deployed, SMRs could firmly establish MENA as a leader in advancing nuclear technology for sustainable energy solutions.

The MENA region is currently experiencing a digital boom, driven by strategic investments, high-performance infrastructure, and favourable energy costs. Although the UAE and Saudi Arabia are taking the lead, countries like Qatar, Bahrain, and Egypt are making significant strides in AI development and related technologies. Recent partnerships have catalysed this growth; for instance, Google has collaborated with Saudi Arabia’s Public Investment Fund to establish a $100 billion AI hub, while Amazon Web Services is investing $5.3 billion in datacentres within Saudi Arabia. Microsoft is also investing $1.5 billion into Abu Dhabi’s G42, an AI-focused holding company. Furthermore, Egypt is developing its first hyperscale datacentre, supported by the Emirati firm Khazna.

However, the increasing digital infrastructure demands are creating a new challenge regarding how to balance this growth with sustainable energy solutions. Although transitioning to low-carbon energy is vital for reducing reliance on fossil fuels, energy from renewable sources like wind and solar may not always align with the constant power requirements of AI datacentres. While energy storage technologies could help address this intermittency, they would require significant investments in land and infrastructure.

SMRs emerge as a feasible option, providing the necessary power density and reliability for AI facilities. Their smaller footprint compared to traditional nuclear plants could allow for co-location near datacentres, thus reducing transmission costs and enhancing energy efficiency. Global interest in nuclear energy for digital infrastructure is rising, with major technology companies exploring SMRs as a sustainable energy solution.

The enthusiasm for SMRs in MENA is notable, particularly in countries with stable regulatory frameworks and government backing, such as Saudi Arabia and the UAE. Morocco is also considering incorporating SMRs for their energy needs, and Bahrain sees their compact nature as a solution to land constraints faced by renewable energy initiatives. Yet, widespread acceptance is contingent upon overcoming challenges related to security, oversight, and the establishment of universal safety standards.

Despite these hurdles, the push for SMRs represents an opportunity for MENA states to take a pioneering role in shaping global nuclear energy standards and demonstrating practical implementations. Governments can position datacentres as catalysts for clean energy innovation by refining regulatory frameworks and promoting knowledge-sharing across borders. By collaborating with technology giants and international nuclear organisations, MENA can streamline governance and harness the benefits that SMRs may offer.

In the context of the MENA region’s rapid digital transformation, the dual emphasis on AI advancement and energy sustainability could prove instrumental. Achieving the necessary balance between growth in the digital sphere and commitment to sustainability calls for significant investment in innovative energy systems. SMRs stand out as a viable solution, offering a pathway for MENA to not only become a hub for AI but also a leader in the sustainable energies of the future.

Source: Noah Wire Services