Saudi Arabia is making a bold move to dominate the AI industry, and it's all thanks to their abundant natural resources. In a recent interview, Aramco CEO Amin Nasser revealed a surprising strategy to CNBC: leveraging cheap energy to establish the kingdom as a global AI data center hub.
But here's the twist: Aramco, the oil giant, is investing in a new AI company, Humain. The Saudi Arabian government's sovereign wealth fund, PIF, owns a majority stake in Humain, which entered the market in May. Aramco plans to acquire a significant minority share, as announced in October.
According to Nasser, Saudi Arabia's competitive edge lies in its low-cost renewable energy and natural gas. This advantage will fuel the growth of Humain, positioning it as the nation's AI champion. Tareq Amin, CEO of Humain, has ambitious goals, aiming to rank Saudi Arabia as the third largest AI player globally, trailing only the U.S. and China.
The energy equation is fascinating: Data centers, crucial for training and running AI applications, consume vast amounts of electricity. By 2030, these centers will use nearly four times the electricity of the entire global electric vehicle fleet. Nasser confirms that gas and renewables will power these facilities, with a focus on gas.
Aramco is directing a substantial portion of its capital spending towards two key areas. First, boosting natural gas production by over 60% by 2030 to meet the energy demands of these data centers. Second, investing in Humain to accelerate its growth. This year alone, Aramco targets capital expenditures of $52-58 billion.
Looking ahead, Aramco anticipates oil and gas demand to rise for decades, especially in developing Asian markets. Nasser predicts a daily demand increase of 1.1-1.3 million barrels this year, with a similar growth rate expected for 2026. He believes emerging economies hold immense growth potential.
And this is where it gets controversial: Is Saudi Arabia's strategy a sustainable approach to AI development? Can a country's energy resources alone drive its AI ambitions? Share your thoughts in the comments, and let's explore the intersection of energy and AI together.
