The Kingdom of Saudi Arabia is channeling a vast investment of $266 billion into its energy infrastructure over the next six years, with a focus on catering to the global transition towards clean energy. Despite this ambitious effort, the capacity of the power grid to sustain daily Artificial Intelligence (AI) operations remains significantly lacking, a challenge that is becoming increasingly pronounced as global energy demands escalate. This was a key point highlighted by the CEO of the newly established Alat company during an interview with Al Arabiya Business.
Alat, which falls under the auspices of the Public Investment Fund (PIF), is dedicated to creating sustainable manufacturing solutions. The company aims to leverage the Kingdom’s plentiful clean energy resources to meet the needs of its global partners.
Power requirements from AI are expected to surge more than 200-fold in the next five years. This underlines the growing reliance on AI applications to meet our needs, positioning AI at the heart of future services,
explained Amit Midha, CEO of Alat, in his conversation with Al Arabiya Business.
Midha emphasizes the importance of developing clean energy infrastructure that can adequately power AI technologies, which he believes are vital for serving the future needs of humanity.
Alat’s primary mission is to enhance the power grid and facilitate decentralized electricity production. This endeavor is envisioned as a prolonged journey that necessitates expedited investments. “Power is key to powering the AI of the future,” Midha notes.
With a collaboration alongside NEOM, Alat’s operational focus spans industry and manufacturing, aiming to penetrate global energy markets. The company’s reach includes international collaborations with entities in Japan, China, the US, Saudi Arabia, and across the MENA region.
By 2030, Alat plans to allocate 375 billion riyals (approximately $99.98 billion) to invest across nine business units that are centered around sustainable technology manufacturing.
Midha conveys that companies worldwide are seeking to transition towards clean energy and integrate AI to spur innovation. Alat intends to support this global transition by forging partnerships with these companies and by introducing top-tier manufacturing capabilities to the Saudi market.
He added, “The Kingdom is poised to become a key player on the global stage in addressing challenges such as decarbonization, and in accelerating AI and innovation, thereby solidifying its role within the global manufacturing supply chain.”