As the GCC region rapidly embraces digital transformation, the demand for data centers is soaring driven by technologies like AI, 5G, and cloud computing. This surge is placing unprecedented pressure on the region’s power infrastructure, especially its transmission and distribution (T&D) networks. The article, authored by Hassan Zaheer, Managing Partner & COO, and published by the World Utilities Congress, explores how the exponential rise in digital services and internet traffic is reshaping the energy landscape in the Gulf.

Governments and private-sector players are investing heavily in digital infrastructure, supported by national strategies such as Saudi Vision 2030 and the UAE Digital Economy Strategy. Global hyperscalers like AWS and Microsoft, alongside regional players, are establishing or expanding data center footprints across the region. However, the power-intensive nature of these facilities is straining electricity grids, especially in rapidly growing urban centers like Riyadh, Dubai, and Doha.

The report highlights the downstream effects on T&D equipment providers, who must now deliver high-performance technologies like GIS substations, SF6-free switchgear, and intelligent transformers to support evolving grid needs. For utilities, the challenge lies in maintaining grid reliability while adapting to volatile, high-load demand profiles. This necessitates modernizing infrastructure, integrating renewables, and developing dynamic interconnection strategies. The article concludes with a call for cross-industry collaboration. Energy planners, utilities, and digital infrastructure developers must work together to build future-ready power systems capable of sustaining the region’s digital ambitions ensuring reliable, efficient, and sustainable operations in the era of big data and AI.

Follow this link to learn more: What Does the Data Center Boom Mean for GCC’s Energy Sector?

###