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UAE grapples with power demands as data centres boom

ByDiya Mathew
2025-05-27.16 days ago
UAE grapples with power demands as data centres boom
UAE tackles rising energy needs as AI-driven data centres surge, leveraging surplus power and sustainable solutions to secure its AI leadership ambitions.

The UAE is now crossing its path towards ambitious AI leadership. It has made heavy investments in AI, while grappling with the high-energy requirements of a burgeoning data-centre industry. AI application programs, especially generative ones of which ChatGPT is an example, consume far greater amounts of energy per single prompt than would be consumed by at least a single classic Google search. Alongside very high computation power requirement for training and running these AI models, it brings great pressure on existing energy resources.

UAE's Strategic Energy Position

While these challenges are present and simultaneously make the UAE institutionally sound in terms of energy, it produces about 166 terawatt-hours per year, consuming 158, and thus, can be tapped to have extra energy resources to support the AI infrastructure. As a result, the UAE is becoming a potential frontrunner in AI-based data centres, provided it manages the energy consumption that comes with it.

Also Read: OpenAI, Oracle, Nvidia, and Cisco Partner to Build UAE's Stargate AI Campus

Sustainable Solutions and International Collaborations

The UAE is also among the many countries looking for sustainable solutions to the energy problems. Other efforts include making renewable energy sources, especially solar energy, operative in data centres. International collaboration can help strengthen its AI strategy. Under the framework agreement between France and the UAE, a 1-gigawatt AI-based data centre is set to be established with investments of between $30 billion and $50 billion. This move aims at strengthening bilateral cooperation in advanced AI technologies and infrastructure development.

It is evident with the heavy investments made by the UAE in data centre facilities and the international partnerships established that the UAE is moving towards becoming an AI country. However, how energy demand will be balanced against sustainability within the AI sector will be crucial for the success of the country in that specific field. The UAE can address such dominance in AI infrastructures by leveraging its energy surplus, renewing energy solutions, and fostering international cooperation to connect with the global network.

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