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.
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.
