The importance of the Middle East for AI

Keywords:

• Artificial intelligence requires large and advanced computing capabilities on an ongoing and continuous basis.
• The computing on which a large part of artificial intelligence is based requires a huge amount of energy. 
• The Middle East region is a unique home for energy, and a unique future region for renewable energy.

Introduction: 

The end of 2022 witnessed the dawn of the era of the so-called artificial intelligence revolution (AI Revolution), when OpenAI launched the ChatGPT chat application as a simulation of discussions between humans and technology, to expand and become very quickly, a major part that intersects with various industries and fields, in order to make life easier and faster in a way that is closer to professionalism, which contributed to making it widespread and noticeable.

In this article will shed light on the importance of the Middle East for AI, through the energy that this region is rich in specifically.

First. The importance of energy for AI:

Before delving into the importance of the Middle East for artificial intelligence, it is necessary to define the importance of energy itself for artificial intelligence.

As artificial intelligence companies, such as Google, Microsoft and Apple, rely on huge centers to collect data that they will process and use later, which are centers that may reach areas extending over 10 thousand square feet, making them places in dire and permanent need of large amounts of energy to operate them.

The International Energy Agency indicates that these centers consume 40% of the energy for computing services, 20% for operating the associated IT equipment, and 40% for cooling.

With the accelerating growth of artificial intelligence and its overlap in various fields, this has been reflected in the amount of energy used by data centers of companies that provide this type of intelligence services.

The amount of energy used can be confirmed by reviewing the numbers through the International Energy Agency (IEA).

IEA expected that the total electricity consumption of these centers would double to more than 1,000 terawatt hours in 2026, an increase of more than 54% over what it was in 2022.

Also, the agency expected, through its report issued in July, that energy demand would grow by about 4% in 2024, which represents the fastest annual growth rate since 2007.

IEA also confirmed that artificial intelligence, in its continuously evolving form, will require advanced computing capabilities, which in turn will require large amounts of energy.

Second. The importance of the Middle East for AI:

Based on the previous information about the importance of data centers for artificial intelligence on the one hand, and the importance of energy for these centers on the other hand, places that can provide such an amount of energy become vital for companies that provide artificial intelligence services.

Here the importance of the Middle East for artificial intelligence emerges in terms of the region's abundance of different and enormous types of energy.

This was emphasized by Roberto Bocca, Head of the Center for Energy and Materials, and Member of the Executive Committee at the World Economic Forum.

This was when he pointed out the importance of the Middle East region and its enormous energy resources, making it one of the most vital regions for artificial intelligence.

Bocca told The National newspaper:

"The Middle East region has two important resources for the future of artificial intelligence, which are 'oil and solar'."

He also emphasized what some regions are doing in the field of nuclear energy, most notably the United Arab Emirates.

According to this enormous wealth enjoyed by the Middle East region, this makes it a destination for artificial intelligence companies that will find a unique opportunity to establish their data centers there.

Many countries in the Middle East are also interested in the issue of renewable energy, which has become a larger part of electricity generation, in a way that optimally provides energy, such as directing energy towards cooling without causing pressure on energy systems directed towards other matters such as computing, data processing and storage.

The Kingdom of Saudi Arabia and the United Arab Emirates are the most prominent countries in the Middle East that are accelerating the process of transitioning towards renewable energy sources and moving away from traditional energy sources such as oil and gas.

The International Energy Agency for Renewable Energy said that the Middle East region, along with some North African countries, can obtain a quarter of primary energy supplies from renewable sources by 2050, bringing its total share of renewable energy in the energy sector to 53%.

It is also possible to note the strategies of the Middle East region to meet the demand for renewable energy sources, through green hydrogen.

Third. Data centers and the Middle East region:

According to a report issued by the consulting firm Knight Frank, the Middle East region will witness significant growth in the data center sector, and an abundance of investment opportunities in this field.

The report highlighted the digital infrastructure and modern, advanced facilities, with Stephen Bird, co-head of global data centres at Knight Frank, saying:

"The foundations for data center growth in the Middle East are there."

The UAE is home to data centers in the Middle East and is open to foreign direct investment.

While Saudi Arabia is second in market share after the UAE, it is the fastest growing data center market in the Middle East.

As a result, although there are theories that AI does not consume a large amount of energy, this needs to be understood more.

As AI in its final form requires an endless amount of data, which in turn will require two things:

• Huge data centers to be used by AI to produce whatever it is asked to.
• Advanced infrastructure to use what AI produces.