How the GCC can align its data centre expansion with its climate ambitions

At the heart of the GCC’s unprecedented digital expansion are data centres. Yet the rapid rise of data centres is also intensifying energy and sustainability pressures, raising an urgent question: how can the GCC reconcile its digital ambitions with its climate commitments? Ramez Shehadi from Accenture shares his perspective.

Digital-first is no longer just a buzzword in the Gulf Cooperation Council (GCC). The region is undergoing a digital renaissance riven by bold national visions, strategic public-private partnerships, and a clear ambition to lead in artificial intelligence, cloud computing, and smart infrastructure.

AI and Infrastructure Investments

• Global data center investment nearly doubled since 2022 to reach $500 billion in 2024. Electricity consumption is set to more than double by 2030, fueled by AI demand.
• In the GCC, data usage is projected to surge 400% between 2022 and 2028. 
• The UAE is emerging as a strategic hub, hosting OpenAI’s largest project outside the US – a 5 GW hyperscale complex in Abu Dhabi --alongside record-breaking chip imports to power next-gen AI models.
• Saudi Arabia is scaling its infrastructure rapidly, integrating AI into projects like NEOM, while Qatar, Bahrain, Kuwait, and Oman expand capacity through sovereign-backed ventures and tech partnerships.
• Qatar has accelerated its digital transformation with the launch of the Digital Agenda 2030, which focuses on advanced compute infrastructure and leveraging AI for economic growth, building on strategic programs like TASMU Smart Qatar.

The momentum for AI and infrastructure investments in the region is underpinned by several advantages, including bold national strategies such as Saudi Vision 2030, UAE’s AI Strategy 2031; a business-friendly regulation; abundant low-cost energy; and strategic global connectivity.

Enablers of Growth

So, what are the factors driving growth in the region’s data centres landscape?

Policy & Regulation

• Regulatory reforms – like Saudi Arabia’s Cloud Computing Framework and Data Protection Law – are improving investor confidence.
• Dubai Internet City is a success story, enabled by tax incentives and 100% foreign ownership in its free zone.
• Qatar has formalized its commitment to unlocking data value by adopting a comprehensive National Data Policy and Standards, led by the NPC, to enforce unified data sharing, interoperability, and quality across government entities, specifically enabling AI-driven services and insights.
• Across the wider Middle East, countries like the UAE, Morocco and Lebanon have established dedicated Ministries of AI, signifying a growing regional trend to centralize and accelerate digital policy. Furthermore, nations like Egypt are advancing their digital strategies with new laws and incentives to develop local tech hubs, highlighting the three maturity clusters: GCC, Eastern Med, and North Africa.

Connectivity & Location

• The region offers low-latency access to Europe, Asia, and Africa via major submarine cable corridors.
• It’s becoming a strategic data corridor for east-west and north-south routes.

Public-Private Partnerships

• National champions like Khazna (UAE) and Tonomus (KSA) are partnering with Microsoft, Oracle, and OpenAI, embedding the region in the global digital fabric.

Energy

• GCC countries offer abundant renewal energy through major solar projects like Sudair and Al Dhafra (KSA) and Mohammed bin Rashia Al Maktoum Solar Park (UAE).
• The region boasts both lower energy costs and lower tariffs.

Sustainability & Resilience Risks

Yet the rapid expansion of data centres introduces significant challenges and complex trade-offs:

• High energy and water use: Some hyperscale facilities consume as much water daily as small cities.
• Extreme heat and humidity challenge cooling design and site selection.
• Grid readiness, urban land scarcity and cost inflation are rising concerns.
• Uptime expectations 24/7 demand resilient, low-carbon infrastructure.

From a policy-planning perspective, GCC policymakers are faced with three strategic questions:

1. How can digital infrastructure scale without breaching national climate targets?
2. What energy mix and site strategies can enable sustainable growth in harsh desert environments?
3. How can AI itself be used to reduce the energy intensity of the infrastructure it powers?

AI as an Enabler of Sustainable Infrastructure

AI is not only the demand driver – it’s also part of the solution. When applied to digital infrastructure, AI can:

• Optimize compute loads and reduce energy waste
• Utilize digital twins to simulate and improve system performance
• Enable predictive cooling and renewal energy forecasting

This not only reduces emissions per unit of compute but also boosts grid flexibility, operational efficiency, and local AI capacity.

Planning for Net-Zeo Infrastructure: A Blueprint for the GCC

To meet its dual goals of digital leadership and sustainability, the GCC should:

• Align infrastructure expansion with national climate plans
• Introduce green building standards, low-carbon design incentives, and ESG compliance benchmarks
• Encourage solar + storage integration and AI-enabled cooling for data centers
• Pursue modular and grid-friendly designs that shift compute loads to solar-heavy hours
• Scale public-private ventures to attract green capital, enable innovation and strengthen regional leadership.

Key Takeaways

Some clear takeaways emerge for policymakers and planners.

• Sustainability must be built into digital infrastructure from the outset – not added after the fact
• AI can reduce infrastructure emissions while increasing performance
• Energy strategy, site selection and climate policy must be integrated
• Public-private collaboration is essential to navigate cost, complexity, and innovation at scale
• The GCC’s natural advantages in connectivity, capital and energy must now be matched by global leadership in sustainable infrastructure design.

Crucially, only through grid resilience planning and long-term energy strategy alignment can the GCC region reconcile its digital ambitions with its climate commitments.

About the author: Ramez Shehadi is Strategy & Consulting Lead for the Middle East at Accenture.