New Delhi 

The World Economic Forum (WEF) has called for countries in the Middle East and North Africa (MENA) to classify artificial intelligence (AI) data centres as “critical dynamic loads” and overhaul energy planning, warning that rising electricity demand, water scarcity and extreme heat could threaten the region’s ambitions to become a global hub for AI infrastructure.

In its report, the WEF said the region’s electricity capacity needs to increase by 40 per cent by 2030, but current projections indicate growth of only 15 per cent, raising concerns about the ability of power systems to support the rapid expansion of energy-intensive AI facilities.

“The question is no longer simply whether to expand digital infrastructure but how to do so efficiently, sustainably and resiliently at scale,” the report said.

The report recommended that governments distinguish AI data centres from conventional industrial and commercial electricity consumers, introduce mandatory energy-demand forecasts and establish coordination mechanisms involving developers, utilities, grid operators and regulators.

It also proposed requiring data centre projects exceeding 10 megawatts of IT load to submit detailed electricity-demand forecasts as part of grid-connection applications.

The report highlighted the growing pressure from AI workloads, with AI server racks consuming between 30 and 100 kilowatts of power, compared with 3-10 kilowatts for traditional web workloads. Sudden fluctuations in demand could destabilise electricity grids, particularly when multiple facilities disconnect or reconnect simultaneously.

Water and cooling requirements present another challenge. The report said cooling accounts for more than 40 per cent of electricity consumption at data centres in the region, while extreme temperatures and limited water availability increase operating costs and resource pressures.

To address these risks, the WEF outlined four areas for action: smarter infrastructure design, integrated energy systems, advanced cooling and water management, and forward-looking regulation.

It recommended greater use of solar power combined with battery storage, on-site electricity generation, AI-based energy management, closed-loop cooling systems and treated wastewater. Small modular nuclear reactors and enhanced geothermal systems could also offer longer-term power solutions, although their commercial viability remains a constraint.

The report said behind-the-meter electricity generation could accelerate data centre deployment by 12-36 months by reducing dependence on utility grid connections.

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It also urged regional governments to harmonise regulatory standards and promote cross-border cooperation to improve infrastructure efficiency and investment confidence.

The report said the recommendations provide a working framework for the next five years, as AI-driven demand intensifies and decisions on power supply, cooling and regulation increasingly shape the region’s digital competitiveness.