AI Could Unlock $1 Trillion for MENA, but Energy and Water Infrastructure Must Keep Pace

Artificial intelligence could unlock more than $1 trillion in economic and sustainability value across the Middle East and North Africa by 2030, according to two new World Economic Forum reports. The opportunity includes up to $200 billion in sustainable financing, $370 billion in public-sector-enabled sustainable investment, $250 billion in avoided long-term asset losses, $90 billion in increased energy-sector valuations and $100 billion in sustainable projects created through cross-sector partnerships.

But capturing that value will depend on whether the region can expand electricity, water and digital infrastructure quickly enough to support AI growth. The WEF says MENA could connect new data centres to the grid within two to five years, compared with more than 10 years in some mature markets, giving the region an infrastructure advantage if energy and water pressures are managed effectively.

 

AI Adoption Still Trails Its Perceived Potential

 

The WEF’s Unlocking Value: AI for Resilient Growth in MENA report, developed with Bain & Company, found strong expectations for AI among sustainability leaders. Around 89% of respondents to the MENA Chief Sustainability Officers Network survey said AI has high or very high potential to advance their organisations’ sustainability goals.

Actual deployment remains much lower. Depending on the use case, only 40% to 55% described adoption as being at the pilot or scaled stage. The report therefore identifies a gap between organisations recognising AI’s potential and integrating it into operational sustainability programmes.

 

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Finance and Public Investment Represent the Largest Opportunities

 

The report estimates that AI could enable up to $200 billion in sustainable financing through the financial sector and another $370 billion in sustainable investment flows through the public sector. It also highlights potential applications in risk management, sustainability analysis and public-private project development.

Case studies include First Abu Dhabi Bank examining AI applications for sustainable finance, Bahrain’s Ministry of Sustainable Development developing an AI-enabled sustainability prototype, ADNOC exploring resilience and sustainability applications, and Saudi Arabia’s Ministry of Economy and Planning developing a tool to support public-private sustainability initiatives.

 

Data Centres Could Become a Regional Competitive Advantage

 

A separate WEF report developed with Saudi Research and Media Group examines the infrastructure required to support hyperscale AI development. It argues that data centres should be treated as an integrated energy, water and digital infrastructure challenge rather than simply as technology projects.

"MENA has the resources, investment capacity and ambition to become a major centre of AI-led growth," said Maroun Kairouz, Managing Director at the World Economic Forum. "Turning that ambition into reality will require innovation across data-centre infrastructure, energy and water systems, and the application of AI to drive sustainability solutions."

 

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Cooling and Electricity Demand Could Become Major Constraints

 

The region’s hot climate makes cooling particularly important. The report notes that cooling can account for more than 40% of total electricity consumption in data centres globally, while AI workloads can create sudden and less predictable changes in electricity demand.

Without coordinated planning, rapid data-centre construction could place greater pressure on power and water systems. The report recommends advanced cooling, AI-enabled operations, smarter infrastructure design and updated regulation to improve efficiency and resilience as capacity expands.

"NENA is uniquely positioned to lead the next wave of digital infrastructure by bringing together its energy capabilities, investment capacity and technological ambition," said Nedaa Almubarak, Managing Director at SRMG Think. "The opportunity lies in aligning intelligent infrastructure with efficient resource use to build resilient, sustainable and competitive digital ecosystems that drive long-term economic growth and innovation."

 

The $1 Trillion Opportunity Depends on Infrastructure Delivery

 

MENA’s investment capacity and relatively shorter grid connection timelines could give it an advantage in attracting AI infrastructure. But the scale of the opportunity means energy and water systems will need to develop alongside computing capacity rather than after it.

The central test will be whether governments, utilities and technology companies can turn rapid data-centre expansion into resilient economic growth without creating new pressure on electricity networks and scarce water resources. The $1 trillion estimate therefore depends as much on infrastructure planning and resource efficiency as on AI adoption itself.

 

Source: World Economic Forum