UAE AI Buildout Puts Water Security At Centre Of Infrastructure Race
The country's data centre and industrial expansion is turning power, cooling and desalination into strategic infrastructure for the next phase of artificial intelligence investment.
The UAE's push into artificial intelligence and advanced industry is increasing the strategic weight of water infrastructure, as data centres and industrial projects require reliable cooling and utility capacity. The National reported that Abu Dhabi is building Stargate UAE, a 1 gigawatt artificial intelligence supercomputing and data centre project expected to cost more than $30 billion.
AI-related investments in the UAE for 2024 and 2025 exceeded Dh543 billion ($147.9 billion), with global firms including Microsoft and KKR announcing major investments in the country, according to the report. Abdulaziz Alobaidli, director general for regulatory affairs at Abu Dhabi's Department of Energy, said new desalination plants are expected to meet rising demand and that Abu Dhabi is building a desalination plant in Shuweihat, while another project was commissioned in the second quarter of this year.
The report linked the utility buildout to the UAE's wider industrial strategy, including the Make It In The Emirates drive and the target of increasing the industrial sector's contribution to GDP to Dh300 billion by 2031 from Dh133 billion in 2021. The National also cited regional data showing the Middle East spent $53.4 billion on desalination capacity between 2006 and 2024, with a further $26 billion expected up to 2028.
Email Edition
Receive The Emirates Intelligencer by email
Subscribe for the daily AI investment bulletin when the latest issue is published.