According to an analysis published by ORF Middle East, artificial intelligence data centres across the Gulf Cooperation Council (GCC) face procurement bottlenecks, global supply-chain vulnerabilities, and resource constraints. Mid- to large-sized AI facilities consume up to 5 million gallons of water daily and as much power as 2 million households, placing pressure on the arid region's power and water infrastructure.
The report identifies heavy dependencies across global hardware supply chains, noting that China accounts for 60 to 70 percent of semiconductor-relevant rare earth element mining and nearly 90 percent of processing capacity. Furthermore, advanced AI chip manufacturing remains concentrated with Taiwan Semiconductor Manufacturing Company, while lengthy lead times persist for ancillary hardware such as transformers, switchgear, and cooling units.
Energy profiles also diverge among GCC economies. As of September 2026, clean energy reached 32.4 percent of installed power capacity in the UAE, near its 2031 target of 35 percent. In contrast, Saudi Arabia generated 4 percent of its electricity from renewables against a 50 percent 2030 target, leaving fossil fuels to anchor grid reliability in the near term.
The authors also highlighted operational and security hazards, citing March 2026 drone debris-induced outages at facilities in the UAE and Bahrain. ORF Middle East noted that comparable severe outage incidents carry a median annual expense of US$76 million for affected enterprises, recommending site hazard reviews and upgraded cyber resilience.
Sources
- ORF Middle East · 2026-10-07
