2025-11-27T13:39:53+00:00
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Shafaq News – Washington
The Middle East’s ability to host
advanced artificial-intelligence data centers—especially in Iraq—will depend on
the stability of national electricity systems, a requirement many countries
still struggle to meet, according to US energy-security expert Paul Sullivan.
Sullivan told Shafaq News on Thursday
that AI facilities demand uninterrupted power and rapid load-management
capabilities, warning that grids lacking this reliability will not operate
these centers properly. He said energy requirements are high across the board:
data centers consume large amounts of electricity, much of it generated from
natural gas, as seen in the United States where gas supplies up to half of the
power feeding major data-center clusters.
Drawing on the US experience,
Sullivan described the American grid as the largest machine on Earth, a system
shaped by a mix of regulated and deregulated markets and decades of structural
change. This model, he said, shows how large-scale data-center expansion can
push electricity prices upward and create political challenges—pressures Middle
Eastern states must anticipate as they pursue AI investments.
On regional readiness, Sullivan
grouped countries by their level of preparedness. He identified the United Arab
Emirates and Saudi Arabia as the most capable of scaling AI infrastructure,
backed by strong grids and clear national strategies. Turkiye, he noted, is close
to being ready.
Egypt, by contrast, faces major
constraints driven by rapid population growth, rising power demand, and heavy
dependence on public grids—conditions that could spark public anger if
electricity prices rise to support data-center loads.
North African states such as Libya and Morocco are also eager to enter the AI
market but need substantial investment in power capacity, electricity-pricing
reforms, and local workforce development.
Turning to Iraq, the official
highlighted both opportunity and vulnerability. Modern data centers, he
explained, could enhance oil-and-gas efficiency by improving pipeline
monitoring, field operations, and export logistics, strengthening Iraq’s
position in global markets. Yet persistent electricity instability remains a
critical barrier. He described the Kurdistan Region as comparatively better
suited for early investment due to its relative stability.
Sullivan stressed that developing
local talent is essential for applying AI across industry, agriculture,
transportation, government services, and education. He also emphasized the
importance of international cooperation, pointing to potential support from the
United States and Japan in advancing energy efficiency and technological
integration.
Because data-center development
requires strong intellectual-property protection and complex contractual
arrangements, he advised governments to adopt behind-the-meter power
generation—dedicated systems that operate independently of national grids—to
avoid price spikes and public backlash.
The expert emphasized that AI is a
practical tool capable of raising productivity and reducing costs across
multiple sectors, citing European examples where excess data-center heat is
used to warm homes. In hotter countries such as Egypt, he noted, the priority
will be improving the efficiency of cooling systems through smarter electricity
use.
Countries delaying investment, Sullivan
warned, risk losing ground as others advance. The UAE and Saudi Arabia know
what they are doing and have the resources, he added, while Iraq, Egypt, and
Morocco have the potential but must strengthen infrastructure, train their
populations, and modernize electricity markets to join this future.
For Shafaq News, Mostafa Hashem,
Washington, D.C.
