AI could be worth $1 trillion to the Mena region, new research suggests

Artificial intelligence could unlock up to $1 trillion in economic value for the Middle East and North Africa region by 2030, according to research from the World Economic Forum. At the WEF's inaugural Annual Meeting of Global Future Leaders, which convenes leaders and experts from around the world, it's clear the potential for AI to drive growth in sustainability and economic sectors is immense.

If the region effectively leverages AI, it could see $200 billion in sustainable financing via the financial sector, $370 billion in investments enabled by the public sector, $250 billion in avoided long-term asset losses, $90 billion in increased valuation through improved sustainability in the energy sector, and $100 billion in new sustainable projects created through cross-sector partnerships. Altogether, these potential gains total more than $1 trillion.

Maroun Kairouz, the WEF's managing director, believes the Middle East and North Africa region possesses the resources, investment capacity, and ambition to become a major hub for AI-led growth. This vision hinges on innovation across data-center infrastructure, energy and water systems, and the application of AI to address sustainability challenges. Case studies from the UAE and other regional companies demonstrate the success of AI initiatives in sustainable finance, energy, and other sectors.

However, the WEF report also warns of the environmental impact of data centers powering AI infrastructure. Given the region's extreme heat and water scarcity, data-center cooling poses a significant challenge. The report identifies data-center cooling as a priority area for innovation, emphasizing the need for sustainable methods to ensure long-term efficiency and resilience.

Despite these challenges, there are still opportunities for data centers in the region, with experts noting that connecting new data centers to the grid can be completed much more quickly than in other mature markets.

The second WEF report highlights the urgent need to address rising energy and water demands associated with AI infrastructure. Abu Dhabi, for instance, has allocated $3.54 billion to integrate AI into public services by next year, showcasing the region's commitment to embracing this transformative technology. The potential for AI to drive economic growth in the region is undeniable, but realizing this potential will require cross-sector collaboration, particularly in the areas of data-center infrastructure, energy and water systems, and sustainable AI applications.