Gulf pours billions into water security to boost AI and industry ambitions
Gulf countries are keen to grow their industrial base and are pouring hundreds of billions into data centres and AI infrastructure to write the next chapter of their new-age economies. However, none of that is possible without the very basic resource: water. The UAE, the Arab world's second-largest economy , is leading the race for AI investment. The capital, Abu Dhabi, is building Stargate UAE,…
Gulf countries are allocating substantial funds to develop their industrial sectors and bolster artificial intelligence (AI) infrastructure. The United Arab Emirates (UAE), the second-largest economy in the Arab world, is spearheading the effort in AI investment, with Abu Dhabi, its capital, constructing a massive 1 gigawatt AI supercomputing and data center project named Stargate UAE, expected to cost over $30 billion.
AI-related investments in the UAE for 2024-2025 surpassed Dh543 billion ($147.9 billion), attracting global firms such as Microsoft and KKR to increase their investments in the country.
Water availability is crucial for the UAE's push to expand its industrial base and lead the global AI and data center race. The technology sector's rapid growth, coupled with population expansion, is expected to increase water demand. Data centers require significant amounts of water for cooling purposes, with a typical data center using 300,000 gallons of water daily, equivalent to the demands of around 1,000 households.
Large data centers can consume up to 5 million gallons of water daily, enough to meet the needs of a town of up to 50,000 residents.
The UAE's industrial sector is set to contribute Dh300 billion to the country's GDP by 2031, up from Dh133 billion in 2021. The global use of water for industries accounts for approximately 20% of the world's total water consumption. Despite concerns regarding water shortages, the UAE remains confident in meeting its new economy ambitions through the construction of new desalination plants.
Abdulaziz Alobaidli, director general for regulatory affairs at Abu Dhabi's Department of Energy, stated that the emirate relies on desalination plants, which have proven to be a reliable source of potable water for the past 50 years. Ensuring the protection and resilience of the source of water, the sea, is the top priority for the UAE, as it has multiple sources of water, including the Arabian Gulf and the Gulf of Oman.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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