Artificial Intelligence (AI) could unlock more than $1 trillion across the Middle East by 2030, including $200 billion through sustainable finance and $370 billion through public investment. a new World Economic Forum report says.
A second report projects that the region could connect new data centres to the grid within two to five years, faster than mature markets, but effectively managing rising energy and water risks will be key to scaling sustainably.
Together, the new reports set out the investment, infrastructure and governance priorities needed to turn AI and data centre expansion into resilient regional growth.
However, the region’s strong potential to scale AI will depend on faster grid connections and effective management of rising energy and water demands, according to the reports.
Unlocking Value: AI for Resilient Growth in MENA, developed with Bain & Company, and Optimizing Hyperscale Data Centre Infrastructure in MENA, developed with Saudi Research and Media Group (SRMG), examine how the region can translate its AI ambitions into sustainable economic value while building the infrastructure required to support growth at scale. Together, the reports highlight MENA’s opportunity to translate AI investment and infrastructure development into last regional impact, while stressing that resilient energy, water and digital systems will be essential to realizing this opportunity.
"MENA has the resources, investment capacity and ambition to become a major centre of AI-led growth,” said Maroun Kairouz, Managing Director, World Economic Forum. “Turning that ambition into reality will require innovation across data-centre infrastructure, energy and water systems, and the application of AI to drive sustainability solutions."
The opportunities and challenges
Unlocking Value: AI for Resilient Growth in MENA estimates that AI could unlock more than $1 trillion in economic and sustainability value across the region by 2030. This includes up to $200 billion in sustainable financing through the financial sector, $370 billion in sustainable investment flows enabled by the public sector, $250 billion in long-term asset losses avoided, $90 billion in increased valuation through improved sustainability performance for the energy sector and $100 billion in sustainable projects launched through cross-sector partnerships.
“The opportunities and challenges that AI presents span growth and innovation, energy cost and supply, and risk management, and the mix differs by region around the world,” said Christophe De Vusser, Worldwide Managing Partner, Bain & Company. “This report uniquely covers how that mix sits in MENA, with disproportionate focus on resilience, while leveraging its unique energy and geopolitical position as a boundary region.”
The report identifies a significant gap between AI’s perceived potential and its implementation. While 89% of sustainability leaders surveyed by the MENA Chief Sustainability Officers Network see high or very high potential for AI to advance their organizations’ sustainability goals, only 40–55% describe their adoption of sustainable AI use cases as “piloting” or “scaled”, depending on the use case.
Through a series of case studies, the report highlights how AI could advance sustainability across key sectors in the region. First Abu Dhabi Bank explored how AI could accelerate sustainability outcomes for financial institutions; Bahrain’s Ministry of Sustainable Development developed an AI-enabled sustainability prototype for the public sector; Abu Dhabi National Oil Company examined how AI could strengthen sustainability and resilience across the energy sector; and Saudi Arabia’s Ministry of Economy and Planning developed a practical tool to drive sustainability solutions through public-private collaboration.
Optimising infrastructure for AI-enabled growth
Optimising Hyperscale Data Centre Infrastructure in MENA examines how the region can build and operate the data-centre infrastructure needed to support the next phase of AI development.
The report frames AI infrastructure as a systems challenge, rather than solely a technology challenge, with gigawatt-scale deployment dependent on the integrated planning and operation of energy, water and digital infrastructure. MENA could connect new data centres to the grid within two to five years, compared with more than 10 years in mature markets, giving the region a potential competitive edge.
“MENA is uniquely positioned to lead the next wave of digital infrastructure by bringing together its energy capabilities, investment capacity and technological ambition,” Nedaa Almubarak, Managing Director, SRMG Think. “The opportunity lies in aligning intelligent infrastructure with efficient resource use to build resilient, sustainable and competitive digital ecosystems that drive long-term economic growth and innovation.”
However, effectively managing rising energy and water demands will be key to scaling sustainably. Cooling can account for more than 40% of total electricity consumption in data centres globally, and extreme heat in much of the MENA region makes efficient cooling particularly energy intensive. AI workloads can also create sharp and unpredictable demand spikes.
The report warns that MENA’s grid and energy advantages could erode if data centres cannot absorb volatile AI loads without destabilizing power and water systems. It recommends smarter design, AI-driven operations, advanced cooling and updated regulation to support a more resilient data-centre ecosystem. -TradeArabia News Service
