It is a bit like the chicken and the egg question, but tri-faceted: we need AI to unlock new innovations, AI needs massive energy to run, and the energy sector needs massive investments to meet this demand. So, what comes first in this equation?
Let's begin at the end. AI has taken over the world. Not in a literal sense, but in every other sense of the word. The reason for the obsession with this relatively new technology is simple.
As humans, we are innately driven to seek tools that can enhance the quality of our lives and help us unlock new productivity levels. From the primitive stone axe to cars, all the way to the internet. It is no wonder, then, that we are so fixated on bots that can perform tasks beyond the capacity of human cognitive power, at a rate previously unimaginable.
But like everything else in the world, this advancement comes at a cost. And the cost for artificial intelligence is high. To understand that cost, we must first understand how AI operates.
At its core, AI is a very smart computer program that can analyse data, learn from it, and make predictions. The key word here is data; AI applications are only as good as the data you feed them. And they need to be fed a lot of data to reach the level they’re at now. This data then needs to be processed and stored somewhere. This is where data centres come into play.
Data centres provide this storage space and have the necessary computing resources required to analyse this huge amount of data. But in return, these facilities require a lot of energy to run, and they must run reliably and round-the-clock.
This may not seem that different from how the internet has worked for a very long time, but it is actually very different in its implications. The internet primarily functions as a global network that connects computers, enabling the exchange of information and communication. But AI can mimic a human brain, understanding context and recognising patterns through complex computations and large-scale data processing. And that is a very energy-intensive process that consumes about 10 to 15 times the electricity of a search on the web.
So how much does it cost to manufacture intelligence? We probably won’t have a definitive answer to this for years to come. Like any new technology, the AI revolution has yet to show us all its cards. But we have many projections and potential scenarios to go by.
The world does not have enough power generation or transmission capacity to fuel the data centres that are in the pipeline
The first undisputed fact is that it will cost an enormous amount of energy. Global energy consumption by data centres is projected to more than double before 2030. In some parts of the world, this increased demand will drive a surge in electricity growth not seen since the turn of the century. In the US alone, which hosts a third of the world’s data centres, an additional 50 gigawatts of data centre capacity is needed by the end of the decade. According to the International Energy Agency (IEA), data centres are expected to use up 6 per cent of the country’s power by 2026, compared to 3 per cent in 2022.
The world does not have enough power generation or transmission capacity to fuel the data centres that are in the pipeline. A recent McKinsey report estimates that generative AI could help create between $2.6 trillion and $4.4 trillion in economic value throughout the global economy. But these figures will not go beyond being futuristic estimations if the necessary investments in the power infrastructure don’t take place. And these investments are of magnificent proportions. In other words, AI will cost a lot of money.
To put it into perspective, these additional 50 gigawatts needed in the US would require an investment of more than $500 billion. Europe, which has the oldest power grid in the world, would need about $850 billion to $1 trillion to transform its grid for AI.
So what does this mean for the energy industry?
In a sector that already demands urgent financing solutions for the uphill battle of reaching net zero emissions, this is of course an added challenge. The rapid increase in energy demand must be balanced with the clean energy goals and climate pledges that took decades to cement.
But this also opens new doors for the industry, particularly the once-disregarded doors of gas and nuclear. These data centres don’t just need energy. They need energy that is 99.9 per cent reliable and that cannot afford intermittency or weather-dependency. This reality is pushing more and more tech companies towards gas and nuclear-powered solutions.
It is already anticipated that the incremental data centre power consumption will bring about a massive wave of new natural gas demand by 2030, which will require new pipeline capacity to be built. Nuclear is already taking centre-stage, with tech giants like Google and Amazon recently turning to it to cater for their increasing electricity needs.
These are major industry pivots that were probably not foreseen a few years ago, influenced heavily by technology trends. This goes to show that, even in a globalised and vastly growing world, energy, data and finance are more interlinked and interdependent than ever before.
At the centre of it all are energy companies (like ours, Siemens Energy), which are up for big opportunities, and equally big responsibilities. With a new wave of customers hungry for (electric) power, and a growing strain on the grid, we have a big role to play in striking the right balance for all.
We should not let the AI frenzy get the best of us. Meeting the world’s towering demand for energy is essential, but we must do so in a sustainable manner that doesn’t compromise on the needs of our planet. We must balance the needs of a digital world with the imperatives of a sustainable future, ensuring that our advancements in technology are powered by wisdom just as much as by watts.
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Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
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Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
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- Keep an open mind
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
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5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
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What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
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Zayed Sustainability Prize
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