At the forefront of sustainable manufacturing, Alat, backed by the Public Investment Fund, has recently announced the launch of two innovative business units focused on electrification and artificial intelligence (AI) infrastructure. This strategic move aims to position Saudi Arabia as a leading global production center.
The announcement was made during the prominent Milken Institute Conference in Los Angeles, marking a significant milestone for the company.
In a recent statement, Alat revealed that these initiatives are integral to the company’s mission to revolutionize industry sustainability and enhance Saudi Arabia’s international industrial presence.
“I am pleased to announce these two exciting new divisions as they will make a significant contribution to Alat’s overall strategic goal of developing an advanced, sustainable future for the industry,” stated Amit Midha, Alat Global CEO.
The electrification division is set to strengthen grid infrastructure, meeting the increasing electrical needs prompted by the rapid growth of renewable energy sources such as solar, wind, and hydrogen.
The firm is poised to leverage Saudi Arabia’s abundant solar energy and other renewable resources to create pioneering solutions that will accelerate the worldwide energy shift and support the decarbonization of various industries.
Key areas of focus for the electrification arm include advancing transmission and distribution technologies, integrating renewable energy into established grids, and leading the development of gas and hydrogen generation and compression technologies.
Meanwhile, the AI Infrastructure business unit will tackle the soaring global demand for AI technologies applicable across numerous sectors.
Tasks include producing state-of-the-art network and communications equipment, servers, data center networking, storage solutions, industrial edge servers, and computing technologies aligned with Industry 4.0.
The statement highlighted that the global electrification market, valued at $73.64 billion in 2022, is projected to surge to approximately $172.9 billion by 2032, advancing at a compound annual growth rate (CAGR) of 8.91% from 2023 to 2032.
Furthermore, the global market for AI Infrastructure is predicted to soar to $460.5 billion by 2033, with a significant CAGR of 28.3%, propelled by the widespread integration of AI in various industries to foster innovation, enhance decision-making, and automate tasks.
As a gold sponsor of the Milken Institute Conference, Alat now boasts nine business units dedicated to the production of sustainable technologies.
According to the company’s plans, Alat is set to invest an impressive $100 billion by 2030 into these business segments, aiming to forge vital partnerships and establish advanced manufacturing capacities within Saudi Arabia, thereby creating jobs and promoting economic diversification in the Kingdom.