Artificial intelligence has been called the engine of the new global economy. Yet while AI feels virtual, its foundations are intensely physical. Every algorithm, every chatbot, every digital assistant depends on a vast ecosystem of chips, data centres and power grids. And as the world races to deploy more AI, these physical foundations are fast becoming the new frontiers of global competition.
Put simply, chips are the new oil – concentrated in just a few countries. Data centres are the new refineries – processing the digital crude. And power grids are the new pipelines, carrying the energy that fuels intelligence. Every AI model depends on a global chain of energy, minerals and capital. That means the future of AI will be shaped as much by energy policy and infrastructure as by algorithms and code.
Globally, AI’s growth is accelerating at a breath-taking pace. Goldman Sachs estimates that it could add $7 trillion to global gross domestic product over the next decade. McKinsey suggests it may drive up to 40 per cent of future economic growth in advanced economies. But this transformation comes with a surge in energy demand: the International Energy Agency forecasts that AI and data centres together could consume more than 8 per cent of global electricity by 2030, up from about 2 per cent today. Each hyperscale data centre already uses as much electricity as a small city.
AI’s hunger for power is already reshaping energy flows – from natural gas and renewables to transmission and storage capacity. In the US, data centre electricity use is growing at double-digit rates. In China, 80 per cent of new data centre power must come from renewables by 2030. Around the world, policymakers are realising that the energy transition and the AI transition are two sides of the same coin.
And that’s where our region has a powerful advantage. It is easier to move data than electrons – meaning energy-rich regions like ours, with affordable and reliable power, are strategically positioned to attract the next wave of AI infrastructure. We can offer what the AI economy needs most: affordable energy, agile policy and available capital.
The UAE in particular has been quick to act. The country is already developing one of the world’s largest data centre complexes, powered by clean energy and built in partnership with leading AI and technology players. This kind of integrated model – linking technology, energy and finance – is the blueprint for resilient growth. It shows how a nation that once exported hydrocarbons can now export digital capacity and clean power intelligence.
We’re also seeing new global alliances that highlight this convergence. Microsoft is turning to nuclear energy in the US to power its AI workloads. Amazon has partnered with Iberdrola in Europe to secure renewable supply. And here in the UAE, world-scale data centres are being built in collaboration with global AI leaders – powered by solar, nuclear and gas, and backed by strong regulatory frameworks. These partnerships show how energy producers and technology innovators are increasingly part of the same value chain.
as AI evolves, it will also depend on that same energy system for its survival
Governments can accelerate this opportunity by streamlining permitting and creating smarter, more predictable regulatory frameworks. Financial institutions can design integrated investment models that link energy producers, chipmakers and data operators – recognising that building 1 gigawatt of data centre capacity can require up to $40-50 billion in capital. And the private sector can work together across industries to ensure infrastructure is both scalable and sustainable.
AI is already transforming how the energy sector itself operates – from predictive maintenance to real-time optimisation of grids and carbon reduction. But as AI evolves, it will also depend on that same energy system for its survival. AI is the newest driver of energy demand, and energy is the enabler of AI progress. The winners will be those who can align both – technologically, economically and geopolitically.
As we gather in Abu Dhabi this week for Adipec, the world’s largest energy gathering, it’s clear that this conversation is already at the centre of global strategy. Under its theme “Energy. Intelligence. Impact”, Adipec showcases how energy and AI can drive prosperity together. And through “Enact” – an Adnoc initiative bringing together leaders in energy, technology, finance and policy – the UAE is providing a global platform to turn these ideas into action.
Our region has led every major wave of energy innovation for the past century. Today, we have the resources, the infrastructure and the vision to lead again – this time at the intersection of energy and intelligence. The challenge ahead is to build, at scale and speed, the physical foundations of the digital future.
If we get this right, our region won’t just power the AI revolution – it will help define it.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Huroob Ezterari
Director: Ahmed Moussa
Starring: Ahmed El Sakka, Amir Karara, Ghada Adel and Moustafa Mohammed
Three stars
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
