The global boom in artificial intelligence (AI) is prompting some countries to delay their energy transition plans for fear of missing out on the economic potential of a rapidly evolving trillion-dollar industry, experts warned during Dubai AI Week.

In a session titled ‘AI’s Energy Future: Strategies for Sustainability’, Zaid Al Ansari, Executive Director of EPRI Gulf, highlighted the soaring energy demands of generative AI tools.

'When you run a simple Google search through a model like ChatGPT, it consumes around ten times more energy than a traditional search,' he said. 'Some countries are extending the lifespan of fossil fuel plants just to meet AI-related energy needs, while others are holding back on their renewable transition goals to remain competitive in the AI race,' he added.

Al Ansari stressed the urgency of integrating data centres with renewable energy sources, while Dr Mounir Boukadidi, Regional Director, Oracle Energy & Water MEA, pointed to the UAE’s strategic advantage: 'The UAE generates approximately 166 terawatt-hours (TWh), while consuming around 158 TWh. This opens a major opportunity for regional energy trading, particularly for powering AI infrastructure.'

Dubai, it was noted, aims to become a regional hub for AI-powered data centres running on 100 per cent renewable energy by 2033.

Mansour Belhadj, General Manager at Microsoft, said: 'By 2026, data centres are projected to consume between 600 and 690 terawatt-hours of power. Around 60 per cent of this will be driven by the execution of AI, and 40 per cent by training models.'

Prof Mohamed Dawoud, Senior Advisor at the Environmental Agency, Abu Dhabi, explained how AI can support arid-region water management: 'We use AI to manage recharge dams and harvest rainfall efficiently.'