AI Could Add $1 Trillion to MENA Economy, but Power and Water Supply Must Keep Pace
Artificial intelligence (AI) could create significant economic opportunities across the Middle East and North Africa, potentially adding $1 trillion to the region's economy. However, experts warn that reliable electricity supplies and sufficient water resources will be essential to support this growth.
According to a report featured by Khaleej Times, two new World Economic Forum studies highlight the region's potential to benefit from the rapid expansion of AI infrastructure.
Data centre connectivity offers an advantage
The MENA region's ability to connect data centres to electricity grids quickly could give it a competitive advantage as countries invest in artificial intelligence and digital technologies.
Data centres are essential for running AI applications, processing information and supporting cloud computing services. Their expansion could create opportunities for businesses, governments and technology companies across the region.
Growing energy and water requirements
Despite the economic potential, AI infrastructure requires substantial amounts of electricity. Data centres also need cooling systems to maintain reliable operations, which can increase water demand depending on the technology used.
The World Economic Forum studies warn that rising energy consumption and cooling requirements could weaken the region's competitive advantage if infrastructure development fails to keep pace.
Infrastructure investment will be crucial
Governments and businesses across MENA may need to strengthen power networks, improve resource efficiency and develop sustainable cooling solutions to support the expansion of AI.
Careful planning and investment in reliable infrastructure could help countries capture the economic benefits of artificial intelligence while managing pressure on natural resources.
AI presents a major economic opportunity
The projected $1 trillion contribution highlights the potential scale of AI-driven growth in the region. However, achieving this potential will depend on how effectively countries balance technological development with energy availability, water management and long-term sustainability.
As AI adoption accelerates, infrastructure readiness is likely to become an important factor in determining the region's future competitiveness in the global digital economy.
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