meed-logo

line1 line2 line3
SIGN IN / REGISTER

Unlocking AI’s carbon conundrum

31 January 2025

 

This package also includes: Trump 2.0 targets technology

Abu Dhabi has recently launched a $6bn project that combines 5,200MW of solar and 19 gigawatt-hours (GWh) of battery energy storage capacity to deliver 1,000MW of round-the-clock renewable power capacity, a world first. 

The project addresses the intermittency of renewable energy, which UAE Industry & Advanced Technology Minister Sultan Al-Jaber describes as the “moonshot challenge” of our time.

The goal is to deliver clean baseload capacity much more quickly and at a lower price than a gas or nuclear power plant.

At approximately $60 a megawatt-hour, the project aligns with the mandate of Emirates Water & Electricity Company (Ewec) to deliver the lowest-cost energy transition.

Abu Dhabi Future Energy Company (Masdar) will develop the project, which will help to boost its gross capacity, in line with expanding its renewable energy portfolio to 100GW by 2030.

Located on a land area of 90 square kilometres, the solar and battery project is due to become operational by 2027, Masdar’s chief operating officer, Abdulaziz Alobaidli, said on 14 January.

This is in addition to the 1.5GW of annual renewable capacity that Ewec intends to procure until at least the mid-2030s, in line with decarbonising the emirate’s electricity system and reaching net zero by 2050.

Following the project’s launch, Masdar announced the preferred engineering, procurement and construction and other sub-
contractors for the scheme. 

AI and power link 

In December, the US government reportedly approved the export of advanced artificial intelligence (AI) chips to a Microsoft-operated facility in the UAE, as part of the technology giant’s $1.5bn partnership with Mubadala-backed AI firm G42.

Three months earlier, in September, Sheikh Tahnoon Bin Zayed Al-Nahyan, deputy ruler of Abu Dhabi and national security adviser, met with Jake Sullivan, US national security adviser, in Washington to seal an agreement known as the Common Principles for Cooperation on AI, following a meeting between UAE President Mohamed Bin Zayed Al-Nahyan and then-US President Joe Biden.

The meeting took place a few days after US-based equity investment firm BlackRock announced a $100bn tech investment platform called Global AI Infrastructure Investment Partnership.

The fund’s partners include Mubadala-backed AI fund MGX, which aims to build $100bn in assets under management; US-based Global Infrastructure Partners; and Microsoft.

In January, MGX teamed up with US tech giant Oracle, Japan’s Softbank and ChatGPT creator Open AI to form the Stargate project, a joint venture that aims to invest $500bn in building AI infrastructure in the US over the next four years.

Abu Dhabi has not denied the link between its clean energy capacity buildout and the UAE’s national, and perhaps international, AI strategy.

A social media post on 14 January by President Mohamed Bin Zayed confirmed the 1GW solar plus battery project will directly support Abu Dhabi’s AI plans.

“The project will help power advancements in AI and emerging technologies, supporting delivery of the UAE National Strategy for Artificial Intelligence 2031 and the Net Zero by 2050 strategic initiative,” he said.

Investing in and developing AI infrastructure and applications at home and abroad is now a UAE government priority. It will create jobs and new revenues, and will boost efficiencies in every facet of governance and business.

“The UAE is well positioned [in the developing AI industry],” says Michael Liebreich, managing partner at UK firm EcoPragma Capital, noting that it has “the energy status, geographical advantage and regulatory framework”.

In light of a new US regulation made public in January that restricts access to US-made AI chips, he adds that “you don’t want to have a situation where the UAE will have to choose between one or the other”, referring to the ongoing power struggle over AI between China, an important energy and trade partner of the UAE, and the US, which is a vital political ally.

Investing in and developing AI infrastructure and applications … is now a UAE government priority

Choosing sides

It appears that this choice has been made previously, however.

In an interview in early 2024, G42 CEO Peng Xiao said that his firm is cutting ties with Chinese hardware suppliers in favour of US counterparts, adding: “We cannot work with both sides.”

In addition, in December, Axios – the US media outlet that reported the clearance of AI chip exports by the US to the Microsoft and G42 facility in Abu Dhabi – suggested that the deal is part of efforts by the US government to elbow China out of the UAE’s expanding tech industry.

In Abu Dhabi, Ewec is tasked not only with decarbonising its electricity system by integrating solar and nuclear plants into its gas-dominated power-generation fleets, but also with ensuring 24×7 clean and cheap baseload capacity gets delivered to a project that is a national priority.

An expanding AI industry will also increase the scope for environmental, social and governance (ESG) compliance.

While it is widely accepted that the use of advanced AI solutions such as large- or small-language models or agentic AI for industrial applications can enable some sectors to cut emissions, AI requires hyperscale data centres, and data centres generally are as polluting as the airline industry.

Although the high temperatures and water scarcity of the Middle East can be addressed by another ESG-sensitive industry – seawater desalination – these factors can lead data centres in the region to be more carbon positive than those in other geographies.

For this reason, Abu Dhabi’s 5.2GW/19GWh project is considered a major milestone, potentially blazing a trail that other regions can follow – assuming it is implemented on time and within budget, and despite opposing opinions on its technical and commercial feasibility.

Main image: Sheikh Tahnoon Bin Zayed Al-Nahyan, deputy ruler of Abu Dhabi and national security adviser, and Jake Sullivan, US national security adviser, signed a cooperation agreement on AI in September 2024. Credit: Wam

Trump 2.0 targets technology

READ MEED’s YEARBOOK 2025

MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

> GIGAPROJECTS INDEX: Gigaproject spending finds a level
https://image.digitalinsightresearch.in/uploads/NewsArticle/13353267/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Turkish Airlines plans further growth

    1 July 2025

    This package on UAE-Turkiye relations also includes:

    > UAE-Turkiye trade gains momentum
    > Turkiye’s Kalyon goes global
    > UAE-Turkiye financial links strengthen

     

    With a network covering 30 more countries than its closest competitor, Turkish Airlines has been recognised by Guinness World Records for the most countries flown to by an airline since 2012. “Over the past two decades, Turkish Airlines has experienced rapid expansion, becoming one of the world’s most recognised airlines and the largest carrier in terms of destinations served,” says Erol Senol, vice-president of sales at Turkish Airlines.

    The airline’s growth has meant it has become a competitor for the major Gulf carriers such as Emirates, Qatar Airways and Etihad. Senol says the growing aviation market offers opportunities for all carriers. 

    “The global centre of aviation is moving from the west to the east,” he says. 

    “This change is advantageous for all regions and carriers, provided there is the commitment to serve more effectively.”

    Extending reach

    Like the airlines in the Gulf, Turkish Airlines is based in a strategically important geographic location. “Istanbul is within a three-hour flight distance to 78 cities in 41 countries, making it a central hub for connections between Europe, Asia and Africa,” says Senol. 

    Since 2019, the airline has also been based at one of the world’s largest airports, Istanbul Grand airport (IGA), which has enabled it to continue growing. 

    “The transition to Istanbul Grand airport has marked a new era for Turkish Airlines, enabling the company to sustain its ambitious growth trajectory,” says Senol. 

    “Approximately 80% of its capacity is dedicated to Turkish Airlines, offering the airline the operational flexibility and technological support required to manage large-scale passenger and cargo flows.” 

    The congestion and capacity limitations that previously constrained operations at Ataturk airport were effectively resolved through this relocation. 

    “Aircraft movement capacity increased from 70 per hour at Ataturk to 80 at the initial stage of Istanbul airport, eventually reaching 120 movements an hour with the commissioning of the third runway. This has significantly reduced aircraft waiting times from 5% to below 1%, improving both punctuality and fuel efficiency,” he adds.

    IGA’s larger footprint, which Senol says is “seven times larger than Ataturk airport” has also enhanced passenger services and facilities, helping to improve customer satisfaction and streamline operations.

    Turkish Airlines has also increased its annual cargo handling capacity from 1.2 million tons at Ataturk to 2.5 million tonnes at IGA, with projections of reaching 5-6 million tonnes as the airport develops further. “Turkish Airlines has advanced from ninth place in 2018 to third place in 2025 in global air cargo traffic rankings,” says Senol.

    Supporting the cargo business is Turkish Cargo’s airport facility, SmartIST, which began operations in February 2022. In 2024, cargo volumes at SmartIST increased by 20% compared to 2023, reaching 1.99 million tonnes. Based on freight tonne kilometres, Turkish Cargo says its market share has reached 5.7%, ranking it third globally. Market share rose to 5.8% in the first quarter of 2025. 

    A second phase of expansion will further enhance Turkish Cargo’s operations capacity, allowing it to handle up to 4.5 million tonnes annually. The long-term target is to reach 3.9 million tonnes of cargo by 2033.

    The relocation of Turkish Airlines’ operations to IGA presented many challenges. 

    “The relocation project involved extensive pre-planning and meticulous attention to detail,” says Senol. 

    One of the key challenges was maintaining uninterrupted flight operations during the transition. With real-time monitoring and contingency planning, Turkish Airlines completed the transfer within 33 hours.

    The transition to Istanbul Grand airport has marked a new era for Turkish Airlines, enabling the company to sustain its ambitious growth trajectory
    Erol Senol, Turkish Airlines

    Future growth

    With major airport projects planned at other hubs, Senol offers some advice on how to ensure a seamless transition of operations. “Airlines should invest in full-scale simulations and contingency rehearsals well before the actual move, including load testing IT systems, coordinating logistics and stress-testing operational workflows,” he says.

    “Success hinges on strong coordination across departments – operations, IT, cargo, ground services, human resources, safety and more. Turkish Airlines created interdisciplinary task forces and embedded decisionmakers in each operational unit to allow for real-time problem solving during the transition. 

    “A relocation isn’t just physical – it’s digital,” he notes. “Turkish Airlines used the move to accelerate digital transformation: implementing contactless systems, integrating cargo automation and upgrading passenger services. Airlines should use relocation as a catalyst to modernise infrastructure and adopt scalable technologies.”

    Another factor is having room to grow. “Airlines should ensure their new base is not just sufficient, but expandable,” Senol adds.

    By 2033, Turkish Airlines aims to serve 171 million passengers across 400 destinations with a fleet of 813 aircraft. “Our strategic plan is built on an annual average growth rate of 7.6%,” he says.

    Turkish Airlines currently operates 481 aircraft, comprising 134 wide-body and 347 narrow-body planes. The airline has also placed orders for 355 new Airbus aircraft – 250 A321 Neos and 105 A350s – to support its growth strategy. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14178357/main.gif
    Colin Foreman
  • Qatar records largest local-currency bank bond issuance

    1 July 2025

    Register for MEED’s 14-day trial access 

    Qatar-based Commercial Bank has completed a QR500m ($137m) senior unsecured bond sale, marking the largest local-currency issuance by a Qatari bank to date.

    The three-year bonds, priced with a 4.9% coupon, were issued under the bank’s Euro Medium Term Note (EMTN) programme. The notes are listed on Euronext Dublin. DBS Bank and Standard Chartered acted as joint lead managers.

    The deal attracted strong demand from both regional and international investors, as lenders across the Gulf continue to diversify their funding bases amid high interest rates, Commercial Bank said in a statement.

    The issuance comes as Qatar’s domestic debt market gains momentum, with banks seeking to tap liquidity in both riyal and hard currency formats.

    Commercial Bank is rated A2 by Moody’s, A– by S&P, and A by Fitch, all with stable outlooks. The lender reported a net profit before tax of QR704.3m for Q1 2025, down from QR801.6m in the same period last year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14177167/main3557.jpg
    Sarah Rizvi
  • New Murabba signs MoU for project delivery solutions

    1 July 2025

    Saudi Arabia’s New Murabba Development Company (NMDC) has signed a memorandum of understanding (MoU) with South Korea’s Naver Cloud Corporation to explore technological solutions for delivering its 14 square-kilometre (sq km) New Murabba downtown project.

    New Murabba CEO Michael Dyke signed the agreement earlier this week during the company’s Investment and Partnership Forum in Seoul.

    According to an official statement: “The three-year agreement covers exploring innovative technology and automation to support the delivery of New Murabba, including robotics, autonomous vehicles, a smart city platform and digital solutions for monitoring construction progress.”

    NMDC is in Seoul to examine technological offerings, assess financing options and showcase the investment opportunities available for the New Murabba downtown development.

    The statement added that the excavation works for The Mukaab, the centrepiece of the overall development, have now been completed.

    The Mukaab is a Najdi-inspired landmark that will be one of the largest buildings in the world. It will be 400 metres high, 400 metres wide and 400 metres long. Internally, it will have a tower on top of a spiral base and a structure featuring 2 million square metres (sq m) of floor space designated for hospitality. It will feature commercial spaces, cultural and tourist attractions, residential and hotel units, as well as recreational facilities.

    Downtown destination

    The New Murabba destination will have a total floor area of more than 25 million sq m and feature more than 104,000 residential units, 9,000 hotel rooms and over 980,000 sq m of retail space.

    The scheme will include 1.4 million sq m of office space, 620,000 sq m of leisure facilities and 1.8 million sq m of space dedicated to community facilities.

    The project will be developed around the concept of sustainability and will include green spaces and walking and cycling paths to promote active lifestyles and community activities.

    The living, working and entertainment facilities will be developed within a 15-minute walking radius. The area will use an internal transport system and will be about a 20-minute drive from the airport.

    The downtown area will feature a museum, a technology and design university, an immersive, multipurpose theatre, and more than 80 entertainment and cultural venues.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14177612/main.jpg
    Yasir Iqbal
  • Levant states wrestle regional pressures

    1 July 2025

    Commentary
    John Bambridge
    Analysis editor

    The Levant countries of Jordan, Lebanon and Syria are all in various degrees of distress, and collectively represent the Israel-Palestine-adjacent geography most severely impacted by that conflict, including in the latest phase initiated by Israel’s attack on Iran. In all three cases, however, recent developments have provided tentative hope for the improvement of their political and economic situations in 2025.

    In the case of Lebanon, still reeling from Israel’s invasion and occupation of the country’s southern territories in retaliation for Hezbollah’s missile attacks on northern Israeli cities, the hope has come in the form of the country’s first elected president since 2022, and a new prime minister. 

    The task before both leaders is to stabilise a deeply fragile political and economic situation while avoiding further degradation to Lebanon’s weakened state capacity. If the country can ride through present circumstances to the upcoming parliamentary elections in May 2026, the possibility could also emerge for a more comprehensive shake-up of its stagnant politics.

    In civil war-wracked Syria, the toppling of the Bashar Al-Assad government in December and the swift takeover by forces loyal to Ahmed Al-Sharaa have heralded a political transition – even if it is not the secular one that Syria’s population might have once hoped for. 

    The new president has already made progress in reaching agreements for the rollback of EU and US sanctions and an influx of foreign investment that his predecessor could only have dreamt of securing. This opens the door to a future of economic recovery for the country.

    The reopening and reconstruction of the Syrian economy also has the potential to benefit the entire region, by rebooting trade and providing growth opportunities.

    For Jordan, the recent conflict in Israel and the occupied Palestinian territories has hit tourism hard, while also pitching the country’s anti-Israel street against its US-allied government. Washington’s threats to cut aid and to raise tariffs on Jordan have added to the political strain on the country, and this has only been staved off by in-person overtures by King Abdullah II to the US government. 

    The outbreak of hostilities between Israel and Iran has only worsened the economic climate for Jordan, with both Israeli jets and Iranian munitions frequenting Jordanian airspace and providing a constant reminder of how close the country is to being dragged into regional unrest. Yet Jordan has avoided conflict to date, and the country’s GDP growth is expected to rise modestly in 2025 as an increase in exports and projects activity stimulates the economy, despite the wider regional headwinds.

    The overall picture for this region is therefore one of tentative recovery from recent shocks, ripe with potential for a better path forward as the Levant rebuilds and works together to overcome the challenges that have so long afflicted the region.

     

    MEED’s July 2025 report on the Levant includes:

    > COMMENT: Levant states wrestle regional pressures

    JORDAN
    > ECONOMY: Jordan economy nears inflection point
    > GAS: Jordan pushes ahead with gas plans 
    > POWER & WATER: Record-breaking year for Jordan’s water sector
    > CONSTRUCTION: PPP schemes to drive Jordan construction
    > DATABANK: Jordan’s economy holds pace, for now

    LEBANON
    > ECONOMY: Lebanon’s outlook remains fraught

    SYRIA
    > RECONSTRUCTION: Who will fund Syria’s $1tn rebuild?

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14122966/main.gif
    John Bambridge
  • Jordan’s economy holds pace, for now

    1 July 2025

    Download the PDF

    MEED’s July 2025 report on the Levant includes:

    > COMMENT: Levant states wrestle regional pressures

    JORDAN
    > ECONOMY: Jordan economy nears inflection point
    > GAS: Jordan pushes ahead with gas plans 
    > POWER & WATER: Record-breaking year for Jordan’s water sector
    > CONSTRUCTION: PPP schemes to drive Jordan construction
    > DATABANK: Jordan’s economy holds pace, for now

    LEBANON
    > ECONOMY: Lebanon’s outlook remains fraught

    SYRIA
    > RECONSTRUCTION: Who will fund Syria’s $1tn rebuild?

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14177596/main.gif
    MEED Editorial