AI Could Add $1 Trillion To Mena Economy, But Power And Water Must Keep Pace

(MENAFN- Khaleej Times) Artificial intelligence (AI) could unlock more than $1 trillion (Dh3.67 trillion) in economic and sustainability value across the Middle East and North Africa (Mena) by 2030, but realising that potential will depend on faster grid connections and effective management of rising energy and water demand, according to two new World Economic Forum (WEF) reports published on Wednesday.

“Mena has the resources, investment capacity and ambition to become a major centre of AI-led growth. 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,” said Maroun Kairouz, managing director at the WEF.

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The reports, Unlocking Value: AI for Resilient Growth in MENA, developed with Bain & Company, and Optimising Hyperscale Data Centre Infrastructure in Mena, developed with Saudi Research and Media Group (SRMG), examine how the region can turn its AI ambitions into sustainable economic value while building the infrastructure to support growth at scale. They stress that resilient energy, water and digital systems will be essential.

The reports were released during the inaugural Annual Meeting of Global Future Leaders 2026, which brings together more than 400 leaders and experts in Dubai from October 13 to 15. The WEF said insights from the meeting will inform its year-round work and discussions at the Annual Meeting 2027 in Davos-Klosters.

The Bain & Company report breaks down the potential value into five areas – up to $200 billion in sustainable financing through the financial sector; $370 billion in sustainable investment flows enabled by the public sector; $250 billion in long-term asset losses avoided; $90 billion in increased valuation for the energy sector through improved sustainability performance; and $100 billion in sustainable projects launched through cross-sector partnerships.

Christophe De Vusser, worldwide managing partner at Bain & Company, said AI presents a different mix of opportunities and challenges in each region, spanning growth and innovation, energy cost and supply, and risk management.

“This report uniquely covers how that mix sits in Mena, with disproportionate focus on resilience, while leveraging its unique energy and geopolitical position as a boundary region,” he said.

Gap between potential and adoption

The report identifies a significant gap between AI's perceived potential and its implementation. While 89 per cent of sustainability leaders surveyed by the Mena Chief Sustainability Officers Network see high or very high potential for AI to advance their organisations' sustainability goals, only 40-55 per cent describe their adoption of sustainable AI use cases as“piloting” or“scaled”, depending on the use case.

The second report frames AI infrastructure as a systems challenge rather than solely a technology one, with gigawatt-scale deployment dependent on the integrated planning and operation of energy, water and digital infrastructure.

It says Mena could connect new data centres to the grid within two to five years, compared with more than 10 years in mature markets, giving the region a potential competitive advantage.

“Mena 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 of 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.”

Risks

However, the report cautions that managing rising energy and water demand will be key to scaling sustainably. Cooling can account for more than 40 per cent of total electricity consumption in data centres globally, and the extreme heat across much of the region makes efficient cooling particularly energy-intensive. AI workloads can also create sharp and unpredictable spikes in demand.

The report warns that Mena's grid and energy advantages could erode if data centres cannot absorb volatile AI loads without destabilising power and water systems. It recommends smarter design, AI-driven operations, advanced cooling and updated regulation to support a more resilient data-centre ecosystem.

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