Rethinking Building Performance in Energy Volatility

Rethinking Building Performance in Energy Volatility

Stunning night view of Doha skyline seen through decorative archways, reflecting vibrant city lights. by bilal findikci via pexels

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Rethinking building performance in an age of energy volatility

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Energy is no longer just a cost to manage; it is becoming a defining factor in how assets perform and how portfolios are valued.

According to Abdulrahman Alhabashi, ISRM KSA chapter vice chair, “Energy volatility is no longer a background concern for the real estate sector; it is becoming a material risk to long-term asset performance. Disruptions across global supply chains and energy flows are creating a more precarious outlook, where power availability, cost exposure, and resilience are increasingly defining competitiveness and value.”

Current geopolitical tensions continue to reshape global energy markets. Their impact is being felt far beyond supply chains and national economies. In the Middle East, where energy has historically supported economic growth and development, this evolving landscape reinforces a key reality: energy can no longer be taken for granted as stable or predictable, but must be understood within a broader, increasingly dynamic global context.

As Mohammed Chilmeran, a senior analyst at Wood Mackenzie, highlights: “Energy market volatility, amplified by conflict in the Middle East and broader geopolitical tensions, is likely to remain elevated in the near term, forcing investors to reprioritize security of supply, optionality in routes and feedstocks, and balance-sheet resilience across energy-dependent assets.”

Volatility in global energy markets is no longer a distant concern; it is now a daily operational reality. This is translating into real economic pressure worldwide, influencing government spending, private sector margins, and long-term investment strategies. In my work across large-scale developments in the Middle East, this shift is already visible, with stakeholders placing increasing emphasis on operational resilience, energy transparency, and long-term cost control.

The Middle East is undergoing one of the most ambitious development phases globally, with large-scale infrastructure, hospitality, tourism, and urban projects being delivered at an unprecedented pace. From giga-projects in Saudi Arabia to expansive urban developments across the GCC, the region is positioning itself at the forefront of global development in both scale and delivery.

This momentum brings significant opportunity, alongside a growing need to manage energy-related considerations effectively. As asset portfolios expand in size and complexity, the importance of actively managing performance across their lifecycle continues to grow.

Within this context, the built environment plays a critical role. Ensuring the long-term performance and efficiency of these assets is essential — not only from a sustainability perspective, but also from an economic and operational standpoint. Buildings are long-life assets, and decisions made today will shape their performance for decades to come.

The challenge is no longer limited to energy availability; it increasingly lies in how energy is managed and optimized during operations.

For conventional buildings, the implications are immediate and measurable. Energy performance directly influences operating costs, carbon emissions, and overall asset efficiency. Across large portfolios, even incremental improvements can deliver meaningful financial and environmental benefits over time.

Ultimately, in a world where energy is no longer stable, the real differentiator is not how buildings are designed, but how intelligently they are operated over time.

Ahmed Yousif

For iconic and large-scale developments, the stakes are even higher. Beyond operational performance, there is a clear priority to protect and enhance long-term asset value. These projects represent substantial capital investment and are often closely tied to national visions and global positioning. Sustaining high levels of performance through effective energy management supports both their economic value and intended legacy.

Addressing both requires a more strategic approach to asset management — one that goes beyond initial design and construction to focus on lifecycle performance. This means integrating continuous monitoring, optimization, and data-driven decision-making into day-to-day operations. Rather than viewing buildings as static deliverables, they should be understood as dynamic systems that evolve over time, benefiting from active management to sustain efficiency, resilience, and long-term value in an increasingly complex energy landscape.

Buildings are among the largest consumers of energy, particularly in regions where extreme climate conditions drive continuous cooling demand. In many cases, buildings account for over 30-40 percent of total energy consumption, with cooling systems representing the dominant share.

Yet despite their significance, many assets still operate without a detailed understanding of how energy is consumed at the system or equipment level. In practice, this often results in limited visibility, fragmented data, and missed opportunities for optimization — despite the growing potential to leverage detailed insights for real-time efficiency gains.

The implications are significant. Even small inefficiencies, when considered across large-scale developments or entire portfolios, can translate into substantial cost impacts. At the same time, enhanced visibility supports more informed decision-making, helping operators and owners better navigate energy price dynamics and strengthen long-term cost control. In this context, improving energy performance is not only a technical consideration, but a strategic opportunity.

Today, advanced monitoring and analytics technologies are widely available and more cost-effective than ever before. What was once limited to highly specialized applications is now accessible across a broad range of asset types. These technologies enable real-time monitoring, predictive analytics, and data-driven performance enhancements at a rapidly evolving scale.

From identifying inefficiencies in cooling systems to optimizing energy use across entire portfolios, these solutions support a transition toward more proactive, value-driven decision-making. Instead of responding to issues after they occur, stakeholders are increasingly able to anticipate, diagnose, and address inefficiencies early—supporting both performance and reliability.

Importantly, the barrier to entry is no longer technological or financial. The tools exist, and they are increasingly accessible. The focus now is on awareness, education, and the ability to effectively implement and integrate these solutions into existing operations. This requires not only technical capability, but also a shift in mindset—recognizing energy management as a strategic lever for value creation.

In a region defined by ambition and rapid development, those who embed energy intelligence into their assets today will be well positioned to navigate uncertainty, enhance value, and contribute to the next phase of sustainable growth.

Ultimately, in a world where energy is no longer stable, the real differentiator is not how buildings are designed, but how intelligently they are operated over time.

• Ahmed Yousif is regional director, Middle East and North Africa at BEE Incorporations.

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Is Automation Really the Answer?  Regional Insights

Is Automation Really the Answer? Regional Insights

Is Automation really the Answer? The Hidden Challenge Inside the Middle East’s Recycling Boom

Egis Published on 10 April 2026

*As published in Waste & Cycling – April 2026

Is Automation really the Answer? The Hidden Challenge Inside the Middle East’s Recycling Boom. Let us what Abhijeet Chaudhary and Teeba Allaw of Egis say.


Across the Gulf Cooperation Council, recycling is moving from the margins to the mainstream. Governments are setting ambitious circular economy and waste diversion targets under national programs such as Saudi Arabia’s Vision 2030, Qatar National Vision 2030, the UAE Net Zero Strategy 2050 and Oman’s Vision 2040. These frameworks are reinforced by flagship projects such as NEOM, where sustainability and resource recovery are embedded in the city’s design. Collectively, they are backed by large-scale investment in new infrastructure, from waste-to-energy plants to material recovery facilities, designed to keep resources in circulation and reduce dependence on landfills.

Within this regional transition, material recovery facilities are taking centre stage. The latest plants combine conveyors, optical sorters and robotics to process hundreds of tons of recyclables each day. Automation aligns with the wider digital agenda promoted through the UAE National AI Strategy 2031, Qatar’s National AI Strategy and Saudi Arabia’s Data and AI Strategy. Together, these efforts signal a determined move toward smarter, data-led waste systems and measurable diversion outcomes.

Yet amid this momentum lies a practical design question: how much automation is enough? Can technology alone overcome the region’s complex waste composition, or does lasting efficiency depend on combining machines with informed human oversight?

Across Europe and the United States, recycling plants have evolved quietly but decisively. Cameras and robotic arms now handle tasks that once depended entirely on manual sorting. Computer vision distinguishes between aluminium cans, coloured plastics and glass fragments while learning from every batch it processes. In regions where households already separate their waste, these tools have raised recovery rates by as much as twenty percent and reduced worker exposure to hazards on sorting lines.

The GCC starts from a different baseline. According to the Gulf Statistical Center, municipal waste in member states contains between fifty and sixty percent organic material, while paper, cardboard and plastics form less than a quarter. This mix leaves recyclable streams heavily contaminated. In the United Arab Emirates, for example, studies show impurity levels of thirty to forty percent in recyclable waste. Behavioural patterns add to the challenge: only about one-third of household’s separate recyclables at home, while more than half still dispose of all materials together. When facilities receive such mixed feedstock, even advanced robotics struggle to produce clean and valuable output.

Investment patterns further shape outcomes. Robotic sorting lines, recognition systems and specialised software require high initial capital and continual spending on maintenance, energy and skilled technicians. In Europe and the United States, consistent waste data and stable recycling policies make such investments predictable. In the GCC, data on waste generation and composition is collected by national authorities but is not always publicly available or detailed enough for private operators to base technology decisions on. This limited visibility makes it harder to compare performance or evaluate long-term returns. That is beginning to change. Policy initiatives such as Dubai’s Green Building System, Saudi Arabia’s National Environment Strategy and Qatar’s National Waste Management Framework are improving data transparency and standardising recycling metrics. As information quality improves and source separation becomes more common, operators will be able to apply automation where it delivers measurable gains in purity and recovery instead of adopting technology for its own sake.

Building the next generation of waste infrastructure in the GCC is not only about installing new machines. It is about knowing what level of automation truly fits the market, what it costs to sustain and how it supports long-term diversion goals. These are complex questions that sit between policy, economics and technology. Egis works in this space, helping governments and municipalities interpret automation and translate it into practical, scalable design decisions.

Every engagement begins with data. Egis studies what the waste stream actually contains, how separation occurs at the source and what recovery levels are realistic within current market conditions. From that foundation, the firm assesses where automation improves purity and throughput and where simpler processes ensure resilience and easier maintenance. This approach shaped Egis’s advisory work for one of the GCC municipalities developing the region’s largest integrated waste-to-energy and material recovery facility under a public-private partnership model. The project combines large-scale energy recovery with a high-capacity facility for recyclables, showing how technology can serve as an enabler rather than a headline feature.

Egis also connects the GCC with global innovation. With offices and technical teams in more than one hundred countries, the firm maintains constant dialogue with technology developers, equipment suppliers and research partners from Europe to Asia and North America. This global reach allows Egis to test new ideas and offer governments a clear view of what truly performs under regional conditions. It replaces buzzwords with evidence and helps public authorities make confident, data-driven investment choices.

Across the region, Egis applies this collective intelligence to one persistent challenge: turning available waste data into actionable design guidance. By combining local datasets, site audits and digital modelling, the firm helps cities and ministries understand how automation influences performance, cost and operations. In doing so, Egis brings clarity to one of the most complex questions in modern recycling: how much technology is enough, and where human insight still adds the greatest value.

Across the GCC, the new measure of progress in recycling is not how automated a plant is but how well its design fits local reality. Real innovation lies in balance, where technology supports the goal of better recovery instead of becoming the goal itself. Consultants are central to that transformation. They link policymakers who set direction with technology creators who build solutions. Through this collaboration, automation becomes a means of solving the waste problem rather than a costly race to install equipment.

Egis stands at the centre of this change. Its strength lies in translating complexity into clarity and turning global technology insight into practical, data-driven choices for cities and ministries. By bringing together markets, governments and innovators, Egis is helping shape a circular economy in which progress is measured not by automation but by outcomes: cleaner materials, smarter investment and stronger systems.

 

Is Automation really the Answer? The Hidden Challenge Inside the Middle East’s Recycling Boom

Teeba Allawi, Graduate Environmental Consultant

………….……….………………………………..Is Automation really the Answer? The Hidden Challenge Inside the Middle East’s Recycling Boom.   

 

 

 

 

Abhijeet Chaudhary, Senior Waste & Resource Management Consultant

 

 

Designing Cities: Balancing History and Innovation

Designing Cities: Balancing History and Innovation

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Designing cities: should we build from scratch or keep history alive?

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Abeer Elshater, Ain Shams University and Hisham Abusaada, Housing and Building National Research Center

Cities are often described as living archives of human memory. Walk through an old neighbourhood in an Islamic city like Fez in Morocco or Cairo in Egypt, and you can see layers of history in its streets and buildings. Traces of the past remain visible in everyday life.

Urban historians sometimes call this a palimpsest – a place where layers of history remain visible, like old writing faintly showing beneath new text.

But in many parts of the world today, cities are being transformed so rapidly that these historical layers are disappearing. Entire neighbourhoods and older areas are demolished and replaced with new districts, infrastructure corridors, or megaprojects. It’s a process that might remind one of French civil servant Georges-Eugène Haussmann’s dramatic demolition and reshaping of Paris in the 1800s.

Designing cities: should we build from scratch or keep history alive? A grand mosque in the centre of a vast city.

In Cairo historical Muslim districts have been preserved.
Omar Elsharawy/Pexels, CC BY

Today’s speed and scale of development challenge the idea that cities grow slowly over time. Building places from scratch is often described as tabula rasa – a “blank slate” approach in which everything is cleared away and rebuilt as if nothing had existed before.

As scholars of architecture and urban design, we recently researched this tension between erasure and memory in urban design. We argue that urban transformation today cannot be understood simply as a choice between preserving the past or starting anew. Instead, cities are increasingly shaped by a complex interaction between the two.

Understanding this tension matters because it influences not only the identity and heritage of a city but also the social and cultural lives of the people who inhabit it. Our argument is grounded in the importance of understanding history to guide future development based on solutions that have been tested successfully in the past.

The myth of the blank slate

For centuries, planners and philosophers have been fascinated by the idea of the tabula rasa. In practice, however, urban space is never truly empty.

Even after buildings are demolished, the forces shaping the city remain: economic pressures, planning regulations, infrastructure networks, and political agendas. Clearing land often produces what French social theorist Henri Lefebvre described as “abstract space”. These are spaces designed mainly for efficiency, profit, or control – rather than for people’s memories or everyday life.

An old painting of a vast open walkway in a city, people strolling. Napoleon III commissioned Haussmann to demolish overcrowded medieval neighbourhoods to open up and beautify Paris. Camille Pissarro / Museum of Fine Arts of Reim

Modern urban renewal projects have often replaced historic districts with standardised environments such as large housing estates, business districts, or transport infrastructures. These environments can feel disconnected from local identity because the historical context that once gave the place meaning has been removed.

For example, Pruitt‑Igoe in St Louis in the US replaced dense, mixed-use neighbourhoods with high-rise public housing that ignored existing street patterns and community life. In Beirut in Lebanon, post-war reconstruction of the city centre prioritised modern commercial developments over the urban fabric and social networks that had defined it for decades.

Designing cities: should we build from scratch or keep history alive?

An old black and white photo of large blocks of residential units as far as the eye can see, open walkways between them.

Pruitt-Igoe, a massive housing complex completed in 1954, was demolished by 1976, becoming a symbol of urban decay.
The Myth of Pruitt-Igoe/Flickr, CC BY

French anthropologist Marc Augé described many of these environments as “non-places”: spaces of transit and consumption, such as airports, highways, and anonymous commercial zones. People pass through without forming lasting attachments.

Cities as layered memory

At the opposite end of the spectrum lies the idea of cities as palimpsest. Historic districts, archaeological remains, street patterns, and even place names all contribute to a layered memory. Urban designers often create designs that draw from the history of a site.

But the palimpsest approach also has limits. Preserving historical layers does not necessarily guarantee meaningful engagement with the past. Sometimes heritage becomes a form of nostalgia –replicating historical styles without understanding their social or cultural significance.

Designing cities: should we build from scratch or keep history alive?

A picturesque city square with old stately buildings and people at a market.

Warsaw’s Old Town, destroyed in the second world war, was rebuilt using paintings and historical evidence.
Egor Komarov/Pexels, CC BY

French philosopher Paul Ricoeur helps clarify this by distinguishing between two types of memory: repetition memory and reconstruction memory.

Repetition memory reproduces the past, often superficially. In Sydney, efforts to revitalise Indigenous neighbourhoods between 2005 and 2019 ended up repeating patterns of colonial land displacement.

Meanwhile, in Rio de Janeiro, the push to redevelop the waterfront for the 2014 Football World Cup and 2016 Olympics wiped out Afro-Brazilian cultural heritage. It replaced it with a sleek, futuristic vision of a global city.

More broadly, across cities in Africa, Asia and Latin America, speculative real-estate projects and investment-driven urban developments have turned land into a commodity. This has fuelled gentrification and pushed local communities to the margins.

Reconstruction memory, by contrast, uses fragments of the past to interpret and reinvent them for the present. For example, in Warsaw in Poland after the second world war, the Old Town was rebuilt. Not as an exact replica but as a carefully interpreted reconstruction, using historical paintings, archaeological evidence, and surviving fragments to evoke the city’s pre-war character. At the same time it accommodated modern needs.

Designing cities: should we build from scratch or keep history alive?

A skeletal old structure with an intact turret and facade against a river and a city in the distance.

Hiroshima preserved ruins of war to create memorial spaces within the Japanese city.
Hoi Wai/Pexels, CC BY

Similarly, Hiroshima’s post-1945 reconstruction preserved certain ruins, such as the Genbaku Dome, while redesigning the surrounding urban fabric to create a memorial landscape. This both honours the past and supports a functional, modern city.

Moving beyond preservation vs demolition

Rather than choosing between total preservation and total erasure, urban design needs to recognise the dynamic relationship between memory and transformation.

We propose thinking about cities through what philosophers call a negative dialectic – a relationship in which two opposing forces, erasure and memory, continually reshape one another. We argue that:

  • Urban clearance does not create a neutral blank slate. It produces new forms of space shaped by political and economic power.
  • Historical memory is not a fixed archive. It is continually reconstructed through interpretation and design.

Understanding cities in this way opens the door to new design strategies. Instead of replicating historical forms or ignoring them entirely, designers can work with fragments, traces, and spatial relationships to generate new urban forms.

For example, in the historic centre of Lugano, Switzerland, the traditional public markets that take place on medieval streets and lake‑edge promenades have long shaped the city’s social life and spatial patterns. Today, these markets interact with contemporary cafés, restaurants and pedestrian routes. They knit together old street networks and new uses in a living urban tapestry rather than freezing them as static heritage relics.

This kind of layering, where everyday activities and historical paths inform modern public space design, shows how urban form can evolve by reintegrating historical traces into present-day life. But urban transformation today is largely driven by rapid development, erasure, and less visible forces.

This makes it essential to rethink how memory, preservation and design methods work together. It requires a shift in design practice away from established paradigms and toward more flexible, context-sensitive strategies.

Designers have tools to respond to rapidly changing urban environments in ways that remain meaningful to communities. These tools include cognitive mapping, which visualises how people perceive and move through a city; layered analysis, which examines overlapping aspects of urban life; and network thinking, which conceptualises cities as interconnected systems.

Designing cities in a rapidly changing world

The future of cities will likely involve even more rapid transformation. Urban sprawl, technological change, and shifting economic systems are already reshaping urban environments, challenging established planning models. For urban designers, this means learning to work in situations where historical precedents are incomplete or unstable.

Cities react to destruction and change in very different ways. Some take a tabula rasa approach. They wipe out communities and rebuilding from scratch, sometimes referencing the past in form or style. This happened in Warsaw’s Old Town. It was rebuilt to look like the prewar city, even though the original residents were gone. Brasília in Brazil, meanwhile, was planned entirely from scratch, clearing old settlements to create a modernist vision.

Others take a more layered, incremental approach, working with what’s already there and letting communities adapt over time.

In Harare’s Dzivarasekwa Extension, for instance, informal settlements were gradually formalised. Housing, services and land tenure were improved, but streets and social networks were preserved. Some cities mix both strategies, like Hiroshima did.

The challenge today is to design urban spaces that acknowledge history while remaining open to new possibilities. For us, the city is neither a blank slate nor a finished story but constantly rewritten through memory and change.The Conversation

Abeer Elshater, Professor of Urban Morphology, Ain Shams University and Hisham Abusaada, Professor of Architecture and Urban Design, Housing and Building National Research Center

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The Conversation.


 

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Middle East economic growth to slow to 1.8 percent

Middle East economic growth to slow to 1.8 percent

Skyline view of Riyadh’s modern architecture with distinctive skyscrapers. by Steven Jeffery via pexels

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Middle East economic growth to slow to 1.8 percent in 2026, says World Bank

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Middle East Economy Published: Thu 9 Apr 2026

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The forecast stands 2.4 percentage points below the World Bank Group’s January projections
Middle East economic growth to slow to 1.8 percent in 2026, says World Bank
In the event of a prolonged conflict, the current impacts on the region will be compounded through elevated energy and food prices, declining trade, tourism and remittances, increased fiscal pressures and displacement

Economic growth in the Middle East, North Africa, Afghanistan and Pakistan (MENAAP) region is expected to slow from 4.0 percent in 2025 to 1.8 percent in 2026, according to the World Bank’s latest Regional Economic Updates.

This forecast stands 2.4 percentage points below the World Bank Group’s January projections.

Energy disruptions weaken 2026 growth outlook

The World Bank noted that the latest conflict in the Middle East has taken a serious and immediate economic toll on countries’ growth in the surrounding region. The closure of the Strait of Hormuz and destruction of energy and public infrastructure have disrupted markets, increased financial volatility and weakened the 2026 growth outlook.

The conflict also comes as an additional shock to a region already suffering from low productivity growth, limited private sector dynamism and persistent labor market challenges, underscoring the urgent need to strengthen governance and macroeconomic fundamentals and take action to boost long-term job creation and resilience.

“The current crisis is a stark reminder of the work ahead for the region: not only to weather shocks, but to rebuild more resilient economies with stronger macroeconomic fundamentals, innovate and improve governance, invest in infrastructure and boost employment-creating sectors,” said Ousmane Dione, World Bank Vice President for the Middle East, North Africa, Afghanistan and Pakistan.

“Peace and stability are preconditions for the region’s durable development. With peace and the right action, countries can build the institutions, capabilities and competitive sectors that create opportunities for people,” added Dione.

GCC growth projected at 1.3 percent in 2026

In the Middle East, the decline in economic growth is concentrated in Gulf Cooperation Council economies and Iraq, which are heavily affected by the conflict. The World Bank has downgraded growth in the GCC by 3.1 percentage points since January and now projects it to slow from 4.4 percent in 2025 to 1.3 percent in 2026.

The World Bank added that risks are tilted to the downside. In the event of a prolonged conflict, the current impacts on the region will be compounded through elevated energy and food prices, declining trade, tourism and remittances, increased fiscal pressures and displacement.

“As countries face the heavy toll of the present conflict, it is important to also not lose sight of the work needed for long-lasting peace and prosperity,” said Roberta Gatti, World Bank Group Chief Economist for the Middle East, North Africa, Afghanistan and Pakistan.

Read: Fed seen holding interest rates higher for longer on energy inflation risks

2026 growth revised lower across key regions

Projections differed in each region but were all revised downward. Sub-Saharan Africa’s economic recovery from a decade of global shocks is showing signs of stalling, with growth projections for 2026 revised downward by 0.3 percentage points from estimates previously published in October 2025.

In the East Asia and Pacific (EAP) region, growth is projected to slow to 4.2 percent in 2026 from 5.0 percent in 2025, as the energy shock due to the Middle East conflict compounds the adverse impact of elevated trade barriers, global policy uncertainty and domestic economic difficulties.

Growth in China is projected to decelerate from 5.0 percent in 2025 to 4.2 percent in 2026 and 4.3 percent in 2027.

Meanwhile, economic growth in the developing countries of Europe and Central Asia (ECA) is expected to weaken to 2.1 percent in 2026. The World Bank added that Latin America and the Caribbean (LAC) is projected to grow 2.1 percent in 2026, below the 2.4 percent recorded in 2025.

Finally, growth in South Asia is expected to slow to 6.3 percent in 2026 from 7 percent in 2025 due to disruptions in global energy markets.

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AI Data Centers And The Thirst For Water

AI Data Centers And The Thirst For Water

A modern server room featuring network equipment with blue illumination.  Ideal for technology themes. by Panumas Nikhomkhai via pexels

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AI Data Centers And The Thirst For Water In MENA

Author: Fanack Water Editorial Team

Artificial intelligence needs vast computing power, and that power now depends on water. In the Middle East and North Africa (MENA), one of the world’s driest regions, this creates a serious new pressure on already scarce resources.

Why AI Data Centers Need Water

AI data centers generate intense heat as servers train and run large models. Operators often rely on water-based cooling, either through evaporative systems that directly consume freshwater or through chillers and towers that use large volumes indirectly. Water is also embedded in the electricity that powers these facilities, because many power plants themselves need water for cooling.

Recent research shows how quickly this adds up. Training a single large model can consume millions of liters of water when you include both onsite cooling and the power supply. One study estimates that answering 20 to 50 AI queries can use the equivalent of a 500‑milliliter bottle of water, when you count the full water footprint of the data center and grid.

A Thirsty Technology In The World’s Driest Region

MENA holds about 6.3% of the world’s population but only around 1.4% of its renewable freshwater, making it the most water‑stressed region on Earth. Of the 17 most water‑stressed countries globally, 11 are in MENA, and some forecasts warn that almost the entire population could face acute scarcity by 2050 if trends continue.

At the same time, Gulf states and other regional economies are racing to become AI and cloud hubs. New data centers are rising in Saudi Arabia, the United Arab Emirates, Qatar and beyond, often in areas where rainfall is minimal and summer temperatures soar above 40 degrees Celsius. Analysts expect regional data center water use to grow rapidly this decade as AI clusters demand denser, more water‑intensive cooling.

Desalination, Energy And The Water–Energy Nexus

Because natural freshwater is so limited, many MENA countries depend heavily on desalination. In Kuwait, about 90% of drinking water comes from desalinated sources; in Oman it is around 86%, in Saudi Arabia nearly 70%, and in the UAE more than 40% of municipal supply. The region already accounts for roughly 42% of global operational desalination capacity, with thousands of plants producing tens of millions of cubic meters per day.

Desalination is lifeline and burden at once. It is energy‑intensive and can harm marine ecosystems through brine discharges, so each extra unit of water for cooling AI infrastructure can also mean more emissions and coastal impacts if powered by fossil fuels. Experts argue that integrating solar and wind power into desalination and water treatment is essential to keep this nexus from becoming a vicious circle.

Emerging Solutions For Water‑Smart AI

There are promising technical responses. In the MENA, some large data centers now use closed‑loop systems and onsite treatment that recycle up to 96% of process water. Mega‑campuses in Saudi Arabia and the Gulf are pairing photovoltaic‑powered desalination with advanced cooling designs, using underground thermal storage and waste‑heat recovery to cut both water use and energy demand.

Globally, major cloud providers are also rethinking their strategies. Microsoft’s own projections showed that its annual water use for data centers could more than triple by 2030, before it revised designs and targets to curb the increase. Independent reviews still find sharp year‑on‑year rises in water consumption for Microsoft and Google, underlining how fast AI is outpacing earlier efficiency gains.

Policy And Transparency Gaps

Despite the scale of the challenge, water data for AI facilities in MENA remains patchy. Many companies do not disclose their withdrawals or consumption, because regulation has not yet caught up with the speed of investment. This lack of transparency makes it hard for communities and policymakers to judge trade‑offs between digital growth and local water security.

Some governments and regional bodies are starting to respond. New water‑energy strategies, desalination partnerships and water security task forces in the Gulf link future infrastructure to renewable energy, wastewater reuse and stricter efficiency standards. To keep AI compatible with a liveable future in MENA, these efforts need to go further—making water‑smart cooling, regenerative desalination and full public reporting standard features of every new data center, not optional extras.

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