INTRODUCTION

As data centers rapidly multiply across the GCC, the region’s energy infrastructure is under immense pressure.

How can the power grid keep up with the surge in demand driven by AI, 5G, and cloud technologies? The global proliferation of internet adoption and digital services consumption has experienced a record level growth. Global internet users have increased by over twice as many times since 2010, and internet traffic worldwide has grown 25-fold. This growth, driven by cloudification and digitalization, deployments of 5G, and generative AI, has boosted infrastructure demand in the form of data centers to handle, store, and move massive data volumes.

In the middle of this global change, the GCC is turning into a strategic point for data centers. However, rapid development challenges the T&D infrastructure readiness as the region is pivoting from fossil-based energy sources to clean energy. This surge is pressuring T&D utilities to expand capacity and modernize grids across the region.

This article will explore the growth trajectory of data centers in the GCC, assess its impact on T&D equipment providers, and examine the implications for electric utilities and grid infrastructure.

INSIGHT PREPARED BY OUR KNOWLEDGE PARTNER: Power Technology Research (PTR)