The rapid expansion of artificial intelligence is creating new infrastructure demands across the Middle East and North Africa (MENA), where growing interest in AI-powered services is increasing the need for advanced data centres. Beyond computing capacity, the region’s ability to support this expansion will depend on reliable electricity supplies, efficient water management and sustainable cooling technologies.

A new report titled Powering AI at Scale: Optimizing Hyperscale Data Centre Infrastructure in MENA, published by the World Economic Forum in collaboration with SRMG Think, examines how infrastructure planning and resource efficiency can support the development of large-scale data centres across the region.

The report highlights an important consideration for governments, technology companies and infrastructure investors: building the facilities needed for advanced AI systems requires coordinated planning across the energy, water and digital technology sectors.

Why AI Expansion Requires More Infrastructure

AI systems depend on powerful computing equipment to train models, process information and deliver digital services. As demand for these capabilities increases, hyperscale data centres are becoming increasingly important to the technology ecosystem.

These facilities house large numbers of servers and networking systems that must operate continuously. Their electricity requirements can be substantial, while the heat generated by computing equipment creates additional cooling demands.

For MENA economies seeking to strengthen their digital industries, expanding data centre capacity could support cloud computing, financial technology, smart cities, industrial automation and public-sector digital services. However, these opportunities also create pressure to ensure that supporting infrastructure develops at a suitable pace.

Without adequate preparation, rapidly expanding computing facilities could place additional demands on electricity networks and water resources, particularly in locations where these resources already require careful management.

Energy Efficiency at the Centre of Data Centre Planning

Electricity availability is a fundamental requirement for large-scale AI infrastructure. Data centres need dependable power to maintain computing operations, protect equipment and provide uninterrupted services.

One approach to managing this demand is improving energy efficiency throughout facility design and operation. More efficient servers, optimised power distribution systems and advanced monitoring technologies can help reduce unnecessary electricity consumption.

Renewable energy can also contribute to the development of lower-carbon digital infrastructure when generation, storage and grid capacity are appropriately coordinated. Long-term electricity procurement arrangements may help operators improve supply planning and manage exposure to changing energy costs.

For policymakers and utility providers, forecasting future data centre demand is equally important. Coordinated planning can help ensure that new computing facilities do not outpace the development of generation capacity, transmission infrastructure and reliable electricity connections.

Water Management and Advanced Cooling

Cooling is another major consideration in the expansion of hyperscale data centres. High-performance AI hardware produces substantial heat, making effective thermal management essential for maintaining performance and preventing equipment damage.

Different cooling technologies have different resource requirements. Conventional air-cooling systems, liquid-cooling solutions and evaporative cooling methods can vary considerably in their electricity and water consumption, depending on their design and operating environment.

Water availability is especially important across parts of the Middle East and North Africa, where arid climates and competing demands can make freshwater resources particularly valuable.

Data centre developers can address these challenges by evaluating local climate conditions, water availability and infrastructure capacity before selecting cooling systems. Depending on the location, options may include closed-loop liquid cooling, improved heat transfer systems, greater use of air-side cooling where conditions permit, and carefully managed alternative water sources.

The objective is not simply to reduce electricity consumption or water use independently, but to evaluate how cooling choices affect the facility’s overall environmental footprint.

Better Planning for Resilient Digital Infrastructure

The development of AI infrastructure requires cooperation among data centre operators, energy providers, water utilities, technology companies and public authorities.

Early coordination can help identify suitable locations, estimate future resource requirements and reduce the risk of infrastructure bottlenecks. It can also improve investment decisions by allowing developers to assess power availability, network connectivity, cooling requirements and long-term operating costs together.

Regional differences must also be considered. Energy resources, water availability, climate conditions and regulatory frameworks vary across MENA countries, meaning that a single infrastructure model may not be appropriate everywhere.

A location-specific approach can help governments and businesses balance digital growth with resource constraints while strengthening the reliability of critical technology services.

Economic Opportunities and Sustainability

Investment in data centres can support the wider digital economy by creating demand for engineering, construction, cybersecurity, cloud services and specialised technical skills. Strong digital infrastructure can also help businesses adopt AI tools and develop new technology-based products.

However, the long-term value of these investments will depend on more than computing capacity alone. Projects must also remain economically viable, maintain reliable operations and manage their environmental impact.

Improving energy productivity, using water responsibly and integrating infrastructure planning into national development strategies can help countries pursue digital transformation without overlooking resource security.

The transition towards more advanced computing infrastructure may also encourage innovation in power management, cooling technologies and digital infrastructure design, creating opportunities for technology providers and engineering businesses.

Preparing MENA for the Next Phase of AI Growth

The World Economic Forum report, developed with SRMG Think, brings attention to the infrastructure decisions that will shape the region’s ability to expand AI deployment. Its central subject is the need to align hyperscale data centre development with energy efficiency, water management and long-term infrastructure planning.

As demand for AI services grows, MENA countries will face the task of developing computing capacity while ensuring that electricity systems and cooling resources can support it reliably.

A coordinated approach could help attract investment, strengthen digital competitiveness and improve the resilience of data centre operations. Ultimately, the success of AI expansion will depend not only on the sophistication of computing hardware, but also on the quality and sustainability of the infrastructure that powers it.