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Insights: Taking AI-driven data centres into the future

Prioritising modular and energy-efficient principles, and improving resource utilisation through zero water cooling, recycling, and low-carbon energy sources will power the growth of data centres

Otmane Benamar
Otmane Benamar

16 January, 2025

Insights: Taking AI-driven data centres into the future
Image: Supplied

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The pace of technological innovations in the last decade has seen the game-changing impact of artificial intelligence (AI) and machine learning (ML) permeate all aspects of our daily lives.

This democratisation of AI in an ever-growing digital economy has also led to explosive growth in the data centre industry as the demand for cloud services and the expanding use of web-enabled devices globally are spiralling upward.

The growing need for more and larger energy-intensive data centres brings with it an exponential growth in power requirements. A 2024 report by the International Energy Agency (IEA) estimates that data centres have the potential to double their energy usage by 2026. These critical infrastructures are an important new factor of higher electricity consumption, and this accelerated demand is expected to reach more than 1,000 terawatt-hours (TWh) — roughly equivalent to the entire electricity consumption of Japan.

Data centres today consume around 1.5 per cent of the world’s electricity, which accounts for around 1 per cent of energy-related greenhouse gas emissions.

Electricity demand in data centres primarily comes from two key processes. Computing activities account for around 40 per cent of the total energy consumption, while cooling systems that are essential for maintaining stable processing efficiency, contribute another 40 per cent. The remaining 20 per cent is used by other associated IT equipment.

As of March 2024, there are more than 10,000 data centres globally. As new facilities are commissioned, growth will be driven by increased adoption of 5G networks and cloud-based services. The rapid growth of AI-related services in the past year alone and the race to build more powerful generative AI models have significantly escalated usage, as the latest chatbots and AI models are computationally intensive.

On average, a ChatGPT query needs nearly 10 times as much electricity to process as a Google search. New AI capabilities like audio and video generation are expected to further increase energy demand.

Growing energy needs of data centres

This growing appetite for power imposes an increased challenge on utilities and the energy sources they manage. They see this as a challenge to their climate pledges (when faced with the challenge of expanding operations and accessing more power while remaining sustainable and reducing their carbon footprint).

To meet the growing energy needs of both data centres and traditional businesses and industries while maintaining the agreed pathways to net zero for their respective country, utilities have been moving from carbon-intensive conventional sources such as coal and liquid fuels to lower carbon power generation such as natural gas — ideally with hydrogen capabilities — and nuclear, and deploying cutting-edge renewables and energy storage technologies, especially battery energy storage systems (BESS), known for its capability to provide short-term storage.

While these technologies are engineered to mitigate the carbon footprint and address the power density challenges significantly, an often-overlooked aspect is that of AI’s ‘water footprint’. For instance, even a short conversation comprising roughly 20 to 50 questions and responses with ChatGPT requires 500ml of water to cool down the servers. This amount could vary depending on the type of power plant and the region, as water usage is influenced by local weather conditions and the cooling technology employed.

This significant water demand is driven by the cooling processes of both power generation and data centre operations. To offset the intense heat generated, most data centres are air-cooled in a process known as swamp cooling, which uses large amounts of water to reduce the temperature of the surrounding air.

Data centres are therefore turning to novel techniques such as liquid cooling which chills the equipment directly, and immersion cooling, a new liquid bath technique where servers are submerged into tubs of coolant to improve their performance and energy efficiency while reducing water usage. Rear-door heat exchangers, on the other hand, encourage better running conditions in dense server environments.

Energy efficiency and greenhouse gas emissions have become mainstream in the sustainability strategies of data centres, but to truly build toward sustainability, water must be part of the equation too, especially as a mid-sized centre in the US uses about 300,000 gallons of water a day, equal to the water consumption of 100,000 homes.

In 2027, the accelerated global AI demand is expected to account for 4.2 to 6.6 billion cubic metres of water withdrawal.

Solving the ‘trilemma’

Solving the power, carbon, and cooling trilemma in data centres will be key going forward, as providers work towards fulfilling the demand reliably and more sustainably. A promising, more modern and sustainable technology to power even the largest data centres with a significantly smaller carbon footprint than reciprocating engines, all the while complementing renewables, are aero-derivative gas turbines, like GE Vernova’s LM series technology, and even heavy-duty gas turbines like GE Vernova’s H-Class. Their fuel diversity attribute allows these turbines to run on various alternate fuel sources, including hydrogen, blends of natural gas, and associated gas, supporting data centres on their sustainability journey, including the path towards net zero carbon emissions and low water consumption.

In addition to advanced power generation, grid technology also plays a critical role in ensuring the reliability of power supply in data centres, which is crucial for their continuous operation. By integrating advanced grid systems, data centres can maintain a stable and uninterrupted power flow, even in the face of fluctuations or disruptions in energy supply. This reliability is vital for preventing downtime and data loss, which can have significant financial and operational consequences.

Furthermore, grid technology can enable seamless integration with BESS and renewables, supporting the decarbonisation efforts.

The sustainability challenges associated with data centres will have implications in the Gulf countries too with the UAE and Saudi Arabia on their path to becoming regional AI superpowers. With a 15.3 per cent increase in live IT capacity, reaching 235.3 MW, the UAE is the top data centre hub in the Middle East and North Africa (MENA) while Saudi Arabia’s 29.7 per cent rise in live IT capacity (109MW) positions the kingdom as the fastest-growing data centre market in the region.

The future of data centres is inextricably linked to the future of energy, and in a water-scarce region like the Middle East, there is a greater urgency to shape a more sustainable digital landscape by integrating sustainable practices into data centre operations.

Prioritising modular and energy-efficient principles, and improving resource utilisation through zero water cooling, recycling, and low-carbon energy sources will power the growth of data centres in a way that aligns with national and global sustainability goals.

The writer is the CTO of EMEA, Gas Power, GE Vernova.

GE Vernova has recently published a whitepaper focused on data centres, that can be downloaded here.

DMCC, REIT Development to build Crypto Tower in Dubai’s JLT

Crypto Tower will offer 150,000 square feet of leasable space including nine office floors and dedicated floors for blockchain incubators, VC and investment firms, and AI innovation

Gulf Business
Gulf Business

15 January, 2025

DMCC, REIT Development to build Crypto Tower in Dubai’s JLT
Image: DMCC

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DMCC, Dubai’s leading international business district, and REIT Development have announced the launch of the highly anticipated ‘Crypto Tower’ in Jumeirah Lakes Towers (JLT), a new 17-storey project designed to support the rapidly growing community of blockchain, decentralised finance (DeFi), and Web3 companies in Dubai. The development aims to strengthen DMCC’s position as a global hub for innovation and advanced technologies.

Crypto Tower will feature over 150,000 square feet of leasable space, including nine floors dedicated to advanced office spaces for crypto startups and established firms.

Additionally, three floors will house blockchain incubators, venture capital firms, and investment companies, while another floor will be devoted to artificial intelligence (AI) innovation, powered by Chatoshi.ai.

The building’s infrastructure will integrate cutting-edge AI solutions and state-of-the-art facilities to enhance business operations.

Blockchain tech at the foundation

Blockchain technology will play a key role in streamlining tenant interactions and transactions through on-chain voting, smart contracts, and other automated services. This integration aims to reduce administrative burdens, increase transparency, and set a new standard in community decision-making and management.

Ahmed Bin Sulayem, executive chairman and CEO of DMCC, commented: “The Crypto Tower is a pioneering development that sits at the interface of blockchain, Web3, and real estate. With over 150,000 square feet of leasable space, including nine office floors, three dedicated floors for blockchain incubators, an AI innovation floor, a crypto club, gold bullion shop, and vault storage area, the tower will provide a range of cutting-edge facilities and services for the benefit of our members.

“The launch of Crypto Tower is both a real-world demonstration of the future of Web3, where transparency and ownership are ensured by blockchain technology, as well as a statement of our intent as we continue to consolidate Dubai’s position as the world’s leading innovation hub.”

Key offerings of the Crypto Tower

The Crypto Tower will also feature a 10,000-square-foot indoor event space, complemented by a 3,500-square-foot outdoor area for crypto and blockchain-related events. On the top three floors, the tower will house a 30,000-square-foot exclusive crypto club, designed to provide premium networking and leisure amenities for high-level collaboration within the blockchain community.

In addition to its core offerings, the tower will integrate high-end features such as an NFT art gallery, a gold bullion shop, an exotic car dealership, and a 5,000-square-foot vault storage area designed to securely store valuables including gold, cash, and cold wallets.

This multifunctional development aims to redefine the integration of technology, finance, and lifestyle in a single space, creating a secure and seamless environment for the world’s leading crypto players.

Brenda Stratton, communications director at REIT Development, added: “By combining blockchain technology with real-world construction in Dubai’s DMCC, we’re creating a physical tower that serves as a central hub for the crypto community. Every expense is on-chain, setting a new standard for transparency in the industry.”

The project, led by REIT Development, is known for its emphasis on incorporating advanced technology and sustainability into real estate developments.

Construction to be complete in 2027

Construction of the Crypto Tower is expected to be completed by Q1 2027, with full operations commencing shortly after.

Once finished, the Crypto Tower will serve as a key component of DMCC’s growing ecosystem, complementing the existing DMCC Crypto Centre headquarters in Uptown Tower and further solidifying Dubai’s status as a global leader in blockchain and advanced technologies.

Read: Dubai’s JLT to get its first service station

UAE’s AD Ports to invest $30m in greenfield grain terminal in Kazakhstan

The total investment in the grain terminal will exceed $50 million across both phases, with AD Ports contributing approximately $30m

Gulf Business
Gulf Business

15 January, 2025

UAE’s AD Ports to invest $30m in greenfield grain terminal in Kazakhstan
Image credit: Emirates News Agency

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AD Ports Group and Semurg Invest have commenced the construction of a new grain terminal at Kuryk Port in Kazakhstan.

Sarzha Grain Terminal, as the facility is known, will initially have the capacity to handle 570,000 tonnes of grain cargo annually in phase one. With the construction of phase two, its capacity will be expanded further to reach 1.5 million tonnes per year.

The total investment in the grain terminal will exceed $50 million across both phases, with AD Ports contributing approximately $30m. The state-owned logistics firm holds a 51 per cent shareholding in the facility, and Semurg owns the remaining 49 per cent stake.

With phase one scheduled for completion in H1 2026, Sarzha Grain Terminal is expected to advance global food trade by connecting Kazakhstan to Europe via the Transcaspian International Transport Route.

“The investment demonstrates AD Ports Group’s dedication to expanding our presence in Central Asia, and in Kazakhstan in particular. Sarzha Grain Terminal will not only boost grain trade and handling at Kuryk Port but also leverage modern technologies and sustainable practices,” Abdulaziz Zayed Al Shamsi, regional CEO of AD Ports Group.

The joint venture, which was initially unveiled in August 2023, follows AD Ports and its subsidiaries’ recent ventures in the Central Asian region.

Meanwhile, AD Ports strengthened its global position in 2024 by expanding internationally and investing in promising projects, boosting its network, capabilities, and international presence while maintaining a strong focus on sustainable innovation and operations.

Ventures in Angola, Egypt, Tanzania, Pakistan, and Georgia enabled the logistics firm to expand into global markets.

AD Ports, controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi and other ports and logistics parks in the Middle East, Northern Africa, the Indian Subcontinent, Central and Southeast Asia, and Europe.

The shipping and logistics group posted Dhs4.66bn in Q3 2024 revenue, a 10 per cent increase from the same period last year. Its net profit jumped 11 per cent to Dhs439m.

Read: AD Ports expands global presence, boosts financial performance in 2024

Emirates Nuclear Energy Co’s ENEC Consulting to support global projects

The subsidiary will focus on the comprehensive lifecycle of nuclear energy projects, from strategic advisory and project management to operational readiness and capacity building

Gulf Business
Gulf Business

15 January, 2025

Emirates Nuclear Energy Co’s ENEC Consulting to support global projects
Image: ENEC

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Emirates Nuclear Energy Company (ENEC) has launched a strategic advisory subsidiary, ENEC Consulting, to support the global expansion of civil nuclear energy programms and related infrastructure.

The move follows the company’s recent rebranding efforts and ambition to become a leader in global nuclear energy solutions.

ENEC Consulting will leverage the company’s more than 15 years of experience, gained through the successful delivery of the UAE Peaceful Nuclear Energy Program and the Barakah Nuclear Energy Plant, which began full-fleet operations in September 2024.

The subsidiary will focus on the comprehensive lifecycle of nuclear energy projects, from strategic advisory and project management to operational readiness and capacity building.

ENEC Consulting’s launch marks a key step in the company’s overall mission to foster the responsible growth of nuclear energy, utilising the UAE’s experience in delivering safe, reliable, and sustainable nuclear power. The company aims to offer proven expertise to help other nations build robust and sustainable nuclear energy ecosystems.

Role of nuclear energy has become more relevant, says ENEC MD and CEO

Mohamed Al Hammadi, managing director and CEO of ENEC, said, “With the demand for clean baseload electricity surging, driven by heavy industry and energy-intensive sectors including data centres required for AI, the role of nuclear energy has never been clearer. The UAE has demonstrated a proven ability to decarbonise its grid, achieving the highest per capita addition of clean electricity globally in the past five years, with 75 per cent of this energy coming from the Barakah Nuclear Energy Plant.

“The creation of the entity comes at a time of significant global momentum in the nuclear energy sector – we are ready to help partners and stakeholders achieve energy security and sustainability. We look forward to expanding our reach, partnering with the industry’s best to drive a new wave of nuclear energy development.”

Services offered

ENEC Consulting will offer advisory services across multiple areas, including project management, regulatory frameworks, financing models, and workforce development. The company aims to replicate the success of the UAE’s nuclear programe by helping countries around the world integrate nuclear energy into their clean energy strategies.

Mohamed Al Braiki, general manager of ENEC Consulting, highlighted the company’s role in global nuclear energy expansion, saying: “As more countries commit to tripling nuclear energy capacity by 2050, ENEC Consulting is ready to deliver expertise gained from the UAE’s journey in successfully developing the Barakah Nuclear Energy Plant, one of the world’s most efficient nuclear new builds.

“Barakah showcases that nuclear energy projects can be delivered on time, cost efficiently, and in full compliance with national and international standards. Our mission at ENEC Consulting is to support other countries and organisations seeking to integrate nuclear energy into their clean energy strategies. By leveraging our insights and experience, we aim to accelerate decarbonisation of power grids through the development of sustainable nuclear energy solutions.”

The subsidiary’s offerings will include the development of oversight mechanisms for safe and efficient project delivery, drawing on the UAE’s internationally recognised standards in safety, security, and operational excellence. It aims to support the growing demand for nuclear energy solutions across both established and emerging nuclear nations.

Launch aligned with overall mission

The launch of the consulting firm is aligned with the UAE’s commitment to the Tripling Nuclear Declaration, introduced at COP 28 in 2023, which calls for the global nuclear capacity to triple by 2050 as part of efforts to achieve Net Zero emissions.

The new initiative is part of ENEC’s broader strategy to contribute to global decarbonisation and serve as a model for responsible and efficient nuclear energy development worldwide.

In addition to its focus on advisory services, ENEC Consulting will assist in establishing regulatory frameworks that ensure projects are completed in full compliance with national and international standards, contributing to the global push for nuclear energy as a safe and sustainable solution for addressing climate change.

Abu Dhabi’s ADIA acquires stake in Canadian Firm Innocap

The Canadian platform has identified the Middle East as a key growth market and plans to open an office in Abu Dhabi in 2025

Kudakwashe Muzoriwa
Kudakwashe Muzoriwa

15 January, 2025

Abu Dhabi’s ADIA acquires stake in Canadian Firm Innocap
Image credit: Christopher Pike/ Getty Images

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Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is investing in Innocap Investment Management, a Canadian platform that makes it easier to allocate capital to multiple hedge funds.

The investment by a wholly owned subsidiary of ADIA is for a minority stake, which will be progressively increased to 10 per cent in the coming years. Innocap said that Mohammed Sghayer Khalaf Al Qubaisi, deputy director of the sovereign fund’s alternative investments department, would join its board “at that point”. The financial details of the transaction were not disclosed.

“Innocap’s platform provides ADIA with a more cash-efficient structure while allowing for greater investment flexibility for some of its hedge fund and equity exposures. Innocap has developed an industry-leading platform which offers a compelling service to asset owners who are seeking more transparency and capital efficiency,” said Al Qubaisi.

ADIA’s subsidiary joins Innocap shareholders, including senior management, Caisse de dépôt et placement du Québec (CDPQ), BNY, Walter Global Asset Management and BNP Paribas.

“Innocap’s shareholders recognise a clear shift in the industry towards dedicated managed accounts, which is notably driven by institutional allocators’ commitment to their fiduciary duty. The resulting network effect is leading to increased use of platforms, such as Innocap, as a superior way to access, structure and monitor their alternative investments,” the Canadian said in a statement.

Innocap operates a managed accounts platform, enabling investors to allocate capital across diverse funds with complete transparency and control over their investments.

The platform typically offers lower fees compared to traditional investment structures. It has identified the Middle East as a key growth market and plans to open an office in Abu Dhabi in 2025.

Read: Abu Dhabi fund ADIA invest $500m in US power firm AlphaGen

Ras Al Khaimah welcomes a record 1.28 million visitors in 2024

With plans to attract over 3.5 million annual visitors by 2030, the emirate is on track to achieve its ambitious goals

Gulf Business
Gulf Business

15 January, 2025

Ras Al Khaimah welcomes a record 1.28 million visitors in 2024
Image: Getty Images

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Ras Al Khaimah Tourism Development Authority (RAKTDA) has reported its strongest year on record, welcoming 1.28 million overnight arrivals in 2024, a significant milestone that highlights the Emirate’s robust tourism growth.

This performance marks a 12 per cent increase in tourism revenues and a 15 per cent rise in meetings, incentives, conferences, and exhibitions (MICE) visitors, reinforcing Ras Al Khaimah’s strategic vision to become a key global tourism destination.

With plans to attract over 3.5 million annual visitors by 2030, the emirate is well on track to achieve its ambitious goals.

Raki Phillips, CEO of RAKTDA, said, “The year 2024 was a milestone one for Ras Al Khaimah, showcasing our commitment to sustainability, enhanced connectivity, and diverse experiences tailored to every traveller. Looking ahead, our vision extends beyond attracting more visitors; we aim to position Ras Al Khaimah as a destination of the future. With significant investments, world-class events, and groundbreaking developments on the horizon, 2025 is set to be another remarkable year.”

Ras Al Khaimah tourism: Key milestones in 2024

Ras Al Khaimah’s impressive tourism growth in 2024 was driven by a variety of factors, including a growing hospitality portfolio, enhanced connectivity, and a dynamic calendar of international events. Among the key achievements were:

Record-breaking visitor numbers: Ras Al Khaimah welcomed 1.28 million overnight visitors, achieving a 12 per cent growth in tourism revenues and a 15 per cent increase in MICE visitors.

Sustainability recognition: Ras Al Khaimah is also the region’s first destination to receive the EarthCheck Sustainable Destinations Silver Certification.

Enhanced connectivity: The launch of new direct flights from key cities such as Moscow, Warsaw, Jeddah, Tashkent, and Bucharest helped improve access to Ras Al Khaimah, particularly through Ras Al Khaimah International Airport. These new routes supported increased tourism flows from various regions.

Expanded hospitality offerings: In 2024, Ras Al Khaimah’s hospitality sector saw the introduction of luxurious new properties, including the Sofitel Al Hamra Beach Resort and Anantara Mina Al Arab Resort. The latter features the Emirate’s first overwater villas, adding a unique luxury experience to the destination.

World-class events: Ras Al Khaimah hosted several internationally recognised events, including the HIGHLANDER Adventure hiking challenge, the Ras Al Khaimah Golf Championship, and the 16th Ras Al Khaimah Half Marathon. The emirate also launched the Seven Wonders experiential concert series, headlined by global DJ Armin Van Buuren.

Record-breaking NYE celebrations: Ras Al Khaimah’s 2024 New Year’s Eve celebrations set two new Guinness World Records for the largest aerial display of a tree and the largest aerial image of a seashell formed by drones.

Workplace excellence: For the fourth consecutive year, RAKTDA was recognised as a ‘Great Place to Work’ in multiple categories, including ‘Best Workplaces in the Middle East’, ‘Best Workplaces in Hospitality in the GCC’, and ‘Best Workplaces for Women in the GCC’.

Empowering local talent: The inaugural Emirati Hospitality Programme, in collaboration with Career Lab and Les Roches University, graduated 18 Emirati youth, providing them with the skills needed for leadership roles in the tourism sector.

Expanding its global reach: Ras Al Khaimah continues to diversify its tourism markets, with a particular focus on the CIS, GCC, Europe, India, and China.

In 2024, the emirate strengthened its presence in China through partnerships with major platforms such as Huawei Group and Trip.com. RAKTDA’s strategic campaigns on Chinese social media platforms like WeChat and Douyin helped boost visibility. Additionally, Ras Al Khaimah was recognised as the Fastest-Growing Tourism Destination by Huawei Petal Ads.

Sustainable growth

In addition to its environmental achievements, RAKTDA launched the Cultural and Heritage Vision, a roadmap to preserve 20 of its more than 80 historical and archaeological sites. The programme aims to develop these sites as key attractions, fostering authentic experiences for visitors and empowering Emiratis to actively participate in tourism.

The emirate also made strides in accessible tourism, partnering with Sage Inclusion to conduct the largest accessibility audit in the Middle East. The comprehensive assessment, completed in late 2024, covered over 40 hotels, 10 attractions, Ras Al Khaimah International Airport, and ground transportation, ensuring that the Emirate becomes a flagship destination for accessible tourism.

A thriving destination

Beyond its tourism goals, Ras Al Khaimah is focused on becoming an exceptional place to live and work. The emirate has gained global recognition as one of the top cities for expats, ranking among the top ten in the InterNations City Ranking 2024.

The emirate was also ranked as the world’s best city for expats to get started abroad, second for working overseas, and fifth for ease of settling in.

With its focus on sustainable growth, hospitality excellence, and a diverse range of experiences for both tourists and residents, Ras Al Khaimah is poised to continue its trajectory as a leading global destination. The emirate’s commitment to empowering local talent, through initiatives such as the Emirati Hospitality Programme, will ensure that its tourism sector remains innovative and globally competitive for years to come.

As Phillips concluded: “Our achievements in 2024 lay a strong foundation for the future, and with a clear focus on sustainability, global connectivity and exceptional experiences, Ras Al Khaimah is set to lead the way in shaping the tourism destinations of tomorrow.”

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