Saudi Arabia’s Alat unveils electrification, AI Infrastructure business units

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Alat, a newly formed entity owned by Saudi Arabia’s Public Investment Fund (PIF), has launched two new business units – electrification and (artificial intelligence) AI infrastructure – to strengthen the global electricity grid technology and meet the growing demand for advanced AI infrastructure.

By combining Saudi Arabia’s clean energy sources with electric-powered industrial systems, the PIF-backed AI fund seeks to manufacture solutions that will contribute to decarbonisation and the global transition to renewable energy.

Alat’s electrification unit will focus on transmission and distribution technologies. The company said it will also include connecting renewable energy sources to the grid and the latest gas and hydrogen generation and compression technologies.

Similarly, the AI Infrastructure unit will manufacture AI tech capabilities including network and communications equipment, servers, networking equipment, data centre storage and Industry 4.0 computing.

“The adoption of AI in combination with other Industry 4.0 technologies including robotics, will enable a leap forward in smart manufacturing and the creation of intelligent factories,” the AI fund said in a statement.

Alat said the launch of the new business units is driven by global trends for energy-efficient computing, to mitigate the environmental impact of large-scale data processing, and renewable energy integration by leveraging renewable energy sources such as solar.

The global electrification market is expected to hit around $172.9bn by 2032, growing at a CAGR of 8.91 per cent between 2023 and 2032 while the AI Infrastructure market is projected to be valued at $460.5bn by 2033.

Alat bolsters Saudi Arabia’s AI ambitions

Meanwhile, Alat has launched nine business units focused on sustainable technology manufacturing since its founding in February. The company plans to invest $100bn by 2030 across the business units to develop key partnerships and build advanced manufacturing capabilities in Saudi Arabia.

Alat’s CEO Amit Midha said the company will announce partnerships with two US tech companies by the end of June and also plans to co-invest alongside an American investment firm.

The company unveiled a $200m partnership with a Chinese surveillance technology firm Dahua Technology to manufacture surveillance hardware in Saudi Arabia. The joint venture will also manufacture hardware, such as sensors, used in “smart cities” and establish a research and development centre in the kingdom.

Together with SoftBank, Alat will invest as much as $150m to establish a fully automated manufacturing and engineering hub in Riyadh. The venture will build industrial robots based on intellectual property developed by SoftBank, with the first factory set to open in December.

Furthermore, its partnership with Carrier Corporation aims to establish advanced manufacturing and R&D facilities focused on smart climate and energy solutions in the kingdom. The investment vehicle expects to sign deals with more key international players and invest in large industrial firms Saudi Arabia wants to see set up operations locally.

 Read: Alat: PIF’s new advanced tech firm to drive economic shift