Energy and infrastructure are key to AI’s future

Energy and infrastructure are key to AI’s future

Energy and infrastructure are key to AI’s future
Aerial view of a data center owned by Google in Santiago, Chile. (AFP)
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At the heart of the artificial intelligence surge is infrastructure. Rapid advances in AI are driving a record-breaking demand for data centers. But a shortage of reliable power is becoming a major bottleneck, sparking a global wave of investment in both energy and digital infrastructure.

Today, AI is increasingly seen not as a passing trend, but as a new essential utility — just like electricity or the internet.

Private markets are riding this wave of optimism. AI-related deals now make up about 3 percent of all transactions, but a hefty 15 percent of total capital invested.

At the same time, venture capitalists are pouring money into AI application platforms at a dizzying pace, showing early signs of a possible investment bubble. Funding for AI platforms has soared to 10 times previous levels, with valuations running five times higher than typical venture capital investments.

For these AI companies, the median funding multiple is about 25 times revenue — and for the top performers, it is as high as 40 times. These eye-watering figures reflect strong expectations for future growth and profits.

Large technology firms have also become ever more intertwined with the global economy, now representing about $15 trillion, or about 15 percent of global gross domestic product.

If momentum continues, this figure could grow to $35 trillion — or even $50 trillion if AI’s influence continues to expand, accounting for about 35 percent of global GDP.

Supporting all this growth requires massive infrastructure expansion. During the original internet boom, the US built about 2 gigawatts of data center capacity over 16 years. In the cloud computing era, this rose to 6 gigawatts.

While the opportunities in AI are huge, building the power and infrastructure needed to support it will be one of the world’s greatest challenges.

Lina Tayara

Today, thanks to AI, the US is adding between 2 to 7 gigawatts of capacity every year — half of it driven by hyperscale companies.

The Middle East, meanwhile, is perfectly placed to capitalize on the AI era, thanks to its affordable, abundant energy.

Global investment firm KKR recently announced a $5 billion investment in Gulf Data Hub, a UAE-based data center company, with 300 megawatts of new capacity aimed at boosting AI growth across the GCC — including a major expansion in , unveiled at LEAP.

AI’s hunger for computing power is also fueling massive investments in graphics processing units.

Over the past six to eight years, the size of processor clusters used for AI model training has exploded by 20 to 40 times, leading to the rise of enormous “giga campuses” with up to 1 million processors.

But with all this expansion, two big questions loom. Can the flow of capital keep up? And can infrastructure projects scale fast enough?

KKR points to two global megatrends that could shape the future: An estimated $100 trillion needed for infrastructure investment over the next 15 years, and another $200 trillion required to achieve global net-zero emissions by 2050.

The bottom line: While the opportunities in AI are huge, building the power and infrastructure needed to support it will be one of the world’s greatest challenges.

Lina Tayara is a consultant in the digital infrastructure industry driving business development, market research and thought leadership on her platform Let’s Talk Tech.
 

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

What We Are Reading Today: ‘The Little Book of Weather’

Photo/Supplied
Photo/Supplied
Updated 2 min 40 sec ago

What We Are Reading Today: ‘The Little Book of Weather’

Photo/Supplied
  • “The Little Book of Weather” is an accessible and enjoyable mini-reference about the world’s weather, with examples drawn from across the globe

Author: ADAM SCAIFE

Packed with surprising facts, this delightful and gorgeously designed book will beguile anyone who is curious about weather.

Expertly written and beautifully illustrated throughout with color photographs and original color artwork, “The Little Book of Weather” is an accessible and enjoyable mini-reference about the world’s weather, with examples drawn from across the globe.

It fits an astonishing amount of information in a small package, covering a wide range of topics—from weather forecasting and extreme events to the future of weather with climate change.

 


Lebanese government vows to rein in Hezbollah after defiant Raouche Rock display 

Lebanese government vows to rein in Hezbollah after defiant Raouche Rock display 
Updated 2 min 42 sec ago

Lebanese government vows to rein in Hezbollah after defiant Raouche Rock display 

Lebanese government vows to rein in Hezbollah after defiant Raouche Rock display 
  • Prime Minister Nawaf Salam announced swift legal action on Friday to uphold state authority after Hezbollah openly violated a government directive by projecting images of slain leaders onto Beirut’s iconic Raouche Rock 

BEIRUT: The Lebanese government pledged swift legal action after Hezbollah brazenly defied an official ban, projecting images of its late leaders onto Beirut’s landmark Raouche Rock, a public display that has reignited fierce debate over state authority and deepened political tensions across the country. 

The expanded consultative ministerial council, led by Lebanese Prime Minister Nawaf Salam at the Grand Serail, condemned Thursday’s event as “a clear breach of the permit” granted for the gathering, and pledged to take necessary measures to protect the prestige of the state and its decisions. 

Ministers stressed the government’s commitment to Lebanon’s stability and social cohesion, vowing to counter divisive rhetoric and halt hate campaigns that threaten national integrity. 

“The policy the government committed to in its ministerial statement calls for extending the sovereignty of the Lebanese state with its own forces across all its territories, and … enforcing the laws on all citizens without exception,” it said, adding that this places “great responsibility” on security services to deliver on this mandate. 

“The Lebanese are equal before the law, and the state does not discriminate between one citizen and another, or between one group of citizens and another.” 

The ministers of defense, interior, and justice attended the Grand Serail at Salam’s request for an emergency meeting, which later expanded to include Minister of Labor Mohammed Haidar (Hezbollah’s representative in the government) and Minister of Finance Yassin Jaber (representing the Amal Movement), along with a number of other ministers. 

Discourse intensified Friday morning regarding Hezbollah’s violation of the official ban on using national monuments for “propaganda purposes and to hold activities in which partisan and political slogans are raised” by lighting the Raouche Rock with images of Hassan Nasrallah and Hashem Safieddine. Hezbollah party supporters launched a campaign of insults on social media against the prime minister, openly challenging his decision. 

Salam canceled all his appointments on Friday, a move initially perceived by the media as a retreat. However, he quickly informed his ministerial and parliamentary visitors that he “wanted to devote himself to following up on the Raouche Rock issue,” emphasizing the necessity of holding accountable those who violated the Lebanese state’s decision. 

In a firm statement issued Thursday night in response to Hezbollah’s defiance, Salam condemned the event as “a clear violation” of the prohibition on illuminating Raouche Rock and projecting images on it. 

Salam described Hezbollah’s actions as a breach of “the explicit commitments of the organizing party and its supporters, and is considered a new lapse on their part, negatively impacting their credibility.” He asserted that “this reprehensible behavior will not deter us from the decision to rebuild a state of law and institutions, but rather increases our determination to fulfill this national duty.”

Salam directed the interior, justice, and defense ministers to “take appropriate measures,” including arresting those responsible and subjecting them to investigation and prosecution under applicable laws. 

Minister of Justice Adel Nassar confirmed that the Public Prosecution is working with security services to identify those involved, regardless of political considerations. He said that “the law applies to everyone without discrimination.”

In response to Hezbollah’s defiance, Kataeb Party leader MP Sami Gemayel, after meeting with Salam, said: “The question today is: Is there a state or not? Will Hezbollah accept the state’s conditions, or does it want to remain above them? Our battle is to restrict weapons, not to light the Rock of Raouche.”

Lebanese Forces leader Samir Geagea praised Salam’s “ongoing efforts to establish the desired state,” adding that “Hezbollah has learned nothing from everything that has happened. What happened at the Raouche Rock constitutes an additional black mark on Hezbollah’s record.”

MP Melhem Khalaf also weighed in, saying: “Hezbollah cannot participate in a government while violating its decisions.”

Sami Abi Al-Mona, Sheikh Aql of the Druze community, emphasized the importance of “strengthening the state’s role, preserving its prestige, and developing the work of its institutions in accordance with the Taif Agreement.”

MP Michel Moawad described what happened at Raouche Rock as “a political May 7 against the state, its institutions, and the people of Beirut,” noting that “Hezbollah’s weapons are not directed against Israel,” and highlighting ongoing disputes over arms control, which Hezbollah appears to reject. 

In parallel, the Israeli army carried out a series of raids on Friday on the eastern mountain range at border sites straddling Lebanon and Syria. 

Israeli army spokesman Avichay Adraee stated that Israeli forces “attacked a Hezbollah precision missile production site in the Bekaa Valley, and that the presence of this targeted site constitutes a violation of the understandings between Israel and Lebanon. The army will continue to work to eliminate any threat to the state of Israel.”


Spotify introduces measures to tackle AI misuse

Spotify introduces measures to tackle AI misuse
Updated 5 min 53 sec ago

Spotify introduces measures to tackle AI misuse

Spotify introduces measures to tackle AI misuse
  • Company urges musicians, producers to adopt new standard

DUBAI: Spotify is rolling out new policies to curb misuse of artificial intelligence and encourage greater transparency from artists and publishers about their use of AI on the platform.

Akshat Harbola, Spotify’s managing director for the Middle East, North Africa, and South Asia, told Arab News: “Every industry is reflecting on the implications of AI right now, and music is no exception.”

The company wants to be thoughtful and responsible in its approach, putting the artist at the center, he added.

As part of this effort, Spotify is urging musicians and producers to adopt a new standard developed by the Digital Data Exchange, a standards-setting organization for the music industry.

Although the system works on a voluntary basis, Spotify said more than 15 labels and distributors had committed to comply with these standards.

The company is also planning to remove tracks impersonating an artist’s voice without consent, and to crack down on fraudulent uploads to artist profiles.

Additionally, over the coming months, Spotify will roll out a music spam filter targeting mass uploads, duplicates, and other spammy practices, which it said are easier to carry out with AI.

The audio streamer will keep updating its policies and tools as it learns more about “how AI fits into the future of music,” Harbola said.

The need for such safeguards became apparent earlier this year when viral band The Velvet Sundown were revealed to be entirely AI-generated — from lyrics and compositions to their virtual members.

The group, which had millions of Spotify streams, eventually admitted on social media they were a “synthetic music project guided by human creative direction, and composed, voiced, and visualized with the support of artificial intelligence.”

On their online profiles, the band are described as: “Not quite human; not quite machine. The Velvet Sundown lives somewhere in between.”

For Spotify, the use and abuse of AI in music is not “just about one AI-generated band or a fleeting online trend,” but rather “part of a broader cultural shift we’re all experiencing together,” Harbola said.

He added: “Whether music is AI-assisted or not, our focus is on helping real artists connect with listeners and upholding the trust and authenticity that make music so powerful.”


Oldest human settlement in Arabian Peninsula discovered near Tabuk

Oldest human settlement in Arabian Peninsula discovered near Tabuk
Updated 14 min 32 sec ago

Oldest human settlement in Arabian Peninsula discovered near Tabuk

Oldest human settlement in Arabian Peninsula discovered near Tabuk
  • Archeological excavations at the Masiyon site northwest of Tabuk, were carried out by the commission in partnership with Japan’s Kanazawa University, and in collaboration with Neom

RIYADH: The oldest architectural settlement in the Arabian Peninsula, dating back to the pre-pottery Neolithic period of 10,300-11,000 years ago, has been discovered near Tabuk, ’s Ministry of Culture announced on Thursday.

Dr. Ajab Al-Otaibi, director general of the Heritage Commission’s antiquities sector, said the find was “among the oldest settlements in the world.”

Archeological excavations at the Masiyon site northwest of Tabuk, were carried out by the commission in partnership with Japan’s Kanazawa University, and in collaboration with Neom.

Although the area has been listed on the National Antiquities Register since 1978, studies in December 2022 revealed it to be the earliest known example of human settlement in the Arabian Peninsula.

Four excavations seasons were conducted up to May 2024 using advanced methods such as documenting stratigraphic layers, classifying artifacts, and analyzing organic samples to establish absolute dating.

Semi-circular granite structures were uncovered — including residential buildings, passageways, hearths and storage areas — suggesting a functional layout supporting hunting and early grain cultivation.

Other finds included stone tools such as grinding stones, knives and arrowheads, along with decorative objects, ceramics, agricultural tools, beehives and human and animal skeletons. Stones engraved with geometric patterns were also unearthed. 

The commission described the discovery as a landmark in understanding the origins of human settlements in ’s northwest and the Kingdom’s wider history.

Al-Otaibi said the findings “highlight the pivotal role of the Arabian Peninsula in the emergence of human civilization.”

They also support the theory that the northwest was a natural extension of Mesopotamia, the Levant and Southern Anatolia — otherwise known as the Fertile Crescent — and that it was home to humanity’s early transition from nomadism to settlement.


Hamilton misses F1 tire test to care for his seriously ill dog Roscoe

Hamilton misses F1 tire test to care for his seriously ill dog Roscoe
Updated 5 min 51 sec ago

Hamilton misses F1 tire test to care for his seriously ill dog Roscoe

Hamilton misses F1 tire test to care for his seriously ill dog Roscoe
  • Hamilton said Roscoe was resuscitated after his heart stopped while under sedation for pneumonia treatment
  • “We don’t know whether he’ll wake from this,” Hamilton wrote on Instagram

SCARPERIA E SAN PIERO, Italy: Lewis Hamilton missed a chance to test Formula 1’s 2026 tires for Ferrari on Friday as he stayed with his bulldog Roscoe, who was in a coma following a pneumonia infection.
Hamilton said Roscoe was resuscitated after his heart stopped while under sedation for pneumonia treatment.

“We don’t know whether he’ll wake from this,” Hamilton wrote on Instagram. “Tomorrow we’ll try to wake him up. I’m by his side and want to thank you all for your prayers and support.”
Hamilton’s former Mercedes teammate George Russell offered support, commenting: “Thinking of you mate.”
The 12-year-old Roscoe has been a regular sight in the F1 paddock for much of Hamilton’s career and has 1.3 million followers on Instagram.
Ferrari reserve driver Zhou Guanyu took part in Friday’s test with tire supplier Pirelli at the Mugello circuit in Italy alongside Hamilton’s teammate Charles Leclerc.
The test runs were disrupted by rain which meant Leclerc and Zhou spent most of the day on intermediate and full wet tires, rather than the hard-compound slicks they were meant to be testing. It was a chance to gather data ahead of wide-ranging changes to F1 regulations in 2026.
Also Friday, Romain Grosjean got back behind the wheel with the Haas team in a 2023-specification car at Mugello. It was a symbolic and emotional return to F1 five years after a fiery crash in his last race of 2020.
“Fantastic, just felt a bit rusty at first and then everything came back,” Grosjean said, adding he was in tears under his helmet visor at the sight of staff from Haas, Ferrari, Red Bull and Pirelli applauding on his final lap.
“I’m very, very grateful. There are just no other words,” he said.
Grosjean wore a helmet with designs drawn by his children. He planned to wear it for what would have been his final race in 2020 in Abu Dhabi, but had to miss it because of burns sustained in the crash a month earlier in Bahrain.