Saudi Arabia is poised to revolutionize the AI industry with a bold strategy, leveraging its natural resources to become a global hub for data centers. But is this a sustainable path to AI dominance?
Aramco CEO Amin Nasser revealed an ambitious plan to CNBC, stating that Saudi Arabia's abundant and affordable energy sources will propel the kingdom to the forefront of artificial intelligence. This strategy involves a significant investment in Humain, an AI company majority-owned by Saudi Arabia's PIF. The CEO envisions Humain as the national AI leader, aiming to rank third globally, behind only the U.S. and China.
The key to this plan lies in Saudi Arabia's low-cost renewable energy and natural gas. Nasser highlights that the country's energy and land availability make it an ideal location for data centers, which are power-hungry operations. These facilities, responsible for training and running AI applications, consume vast amounts of electricity, primarily generated from renewables and natural gas. By 2030, they are projected to use four times more electricity than the global electric vehicle fleet.
Aramco is directing a substantial portion of its capital spending towards this vision. The company aims to increase natural gas production by over 60% by 2030 to meet the energy demands of these data centers and its investment in Humain. This year alone, Aramco targets capital expenditures of $52-58 billion.
Nasser also emphasized the long-term growth of oil and gas demand, particularly in developing Asian markets, predicting an increase of 1.1 to 1.3 million barrels per day in 2025 and a similar growth in 2026. He believes emerging economies hold immense potential for expansion in this sector.
But here's where it gets controversial: Is Saudi Arabia's focus on cheap energy a sustainable approach to becoming an AI leader? As the world shifts towards renewable energy, is this strategy future-proof? Share your thoughts in the comments below. Remember, every perspective matters in this evolving digital landscape!
