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The World Economic Forum (WEF) has urged countries in the Middle East and North Africa (MENA) to classify artificial intelligence (AI) data centres as “critical dynamic loads”. This move aims to overhaul energy planning, as rising electricity demand, water scarcity, and extreme heat could threaten the region’s ambitions for AI infrastructure.

The WEF report indicates that MENA’s electricity capacity needs to increase by 40 per cent by 2030. However, current projections show only 15 per cent growth, raising concerns about supporting energy-intensive AI facilities. The report highlighted that AI server racks consume 30 to 100 kilowatts of power, significantly more than the 3 to 10 kilowatts for traditional web workloads.

Cooling requirements also pose a challenge, accounting for over 40 per cent of data centre electricity consumption in the region. Extreme temperatures and limited water availability increase operating costs and resource pressures.

The WEF recommended that governments distinguish AI data centres from conventional industrial and commercial electricity consumers. It also proposed mandatory energy-demand forecasts and coordination mechanisms involving developers, utilities, grid operators, and regulators.

Key Recommendations

The WEF outlined four areas for action: smarter infrastructure design, integrated energy systems, advanced cooling and water management, and forward-looking regulation. It recommended greater use of solar power combined with battery storage, on-site electricity generation, and AI-based energy management.

Closed-loop cooling systems and treated wastewater were also suggested. Small modular nuclear reactors and enhanced geothermal systems could offer longer-term power solutions, though their commercial viability remains a constraint.

Regional governments are urged to harmonise regulatory standards and promote cross-border cooperation. This would improve infrastructure efficiency and investment confidence.

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