AI adoption calls for complete overhaul of digital and energy infrastructure

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AI adoption calls for complete overhaul of digital and energy infrastructure

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Artificial intelligence is continuously reshaping contemporary life, affecting our experiences of humanity, creativity and culture while also raising concerns about safeguarding human identity and values.

We are developing knowledge systems that remain partially understood and unpredictable, necessitating regulations for human control and containment.

This oped highlights the unprecedented speed of AI-technology adoption, the massive increase in data generation, the rising demand for data centers, and the energy needed to support exponential computing.

It also emphasizes the significant capital expenditure required to establish a robust digital and energy infrastructure amidst the ongoing climate crisis.

Data growth began modestly with social media in 2010, expanded with streaming and content creation in 2015, and rapidly escalated with the launch of ChatGPT at the end of 2022.

Today, AI is integrated into many applications, and people are becoming more aware of the substantial energy required to power these advanced AI models.

Significant investments and energy consumption are necessary to train AI, with the expectation that these costs will yield benefits.

Lina Tayara

For instance, while a Google search consumes a baseline of energy, Language AI (like ChatGPT) uses 10 times that amount, Image AI (such as DALL-E) consumes 320 times, and Video AI (like Sora) requires a staggering 10,000 times.

This situation calls for a complete overhaul of our digital and energy infrastructure.

Amazon’s global capital expenditure is projected to exceed $50 billion this year, while Meta is increasing its expenditure to accommodate the sharp rise in usage across its applications, including WhatsApp, Facebook and Instagram.

WhatsApp alone boasts a user base of over 2.8 billion worldwide, with video content driving adoption trends.

While the internet provides a low-cost technological solution for ecommerce, AI technology comes with high expenses that need justification through its ability to solve complex problems.

Significant investments and energy consumption are necessary to train AI, with the expectation that these costs will yield benefits.

Advocates believe that AI’s capability to process vast amounts of data rapidly will lead to energy efficiencies and solutions for pressing issues like disease and climate change.

A report by Google and the Boston Consulting Group suggests that AI could potentially reduce global greenhouse gas emissions by 5 to 10 percent by 2030.

It highlighted applications such as optimizing fuel-efficient routes for drivers and pilots to minimize contrail clouds, the highly polluting trails left by airplanes.

However, generative AI skeptics in the finance sector argue that claims regarding potential economic benefits are exaggerated and primarily serve the interests of Big Tech. They anticipate that AI has about 18 months to deliver on its promises before investors lose interest.

The competition for AI dominance also involves a race to construct the necessary digital infrastructure, which is becoming an emerging concern.

Energy is the most crucial factor driving large tech companies to seek new locations for their mega-scale AI training workloads.

Lina Tayara

Energy is the most crucial factor driving large tech companies to seek new locations with powered land and green energy for their mega-scale AI training workloads.

The demand for cloud services and AI tasks requires large campuses and higher densities that legacy markets cannot accommodate due to land, power, and grid limitations.

Consequently, the trend of hyperscalers assessing locations with stable and cost-effective energy will remain significant in 2025, with various countries competing to attract them.

The Nordic region, with its cool climate and abundant renewable energy, holds a considerable advantage.

With a limited pool of investors possessing both technical expertise and substantial capital to support the trillion-dollar digital transformation and energy transition, development will likely be limited to a select few private and public funds with a clear vision and strategy.

It is anticipated that hyperscalers including Meta, Amazon, Microsoft, Oracle and Google will invest over $1 trillion in data and energy infrastructure.

Saudi Arabia’s Project Transcendence aims to secure $100 billion in funding, positioning the Kingdom as a potential hub for growth, partnerships, and a rising contender in the AI-enabled digital and energy infrastructure landscape.

• Lina Tayara is a consultant in the digital infrastructure industry driving business development, market research and thought leadership on her platform Let’s Talk Tech.

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce

Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce
Updated 30 sec ago
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Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce

Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce

RIYADH: Industry leaders, policymakers, and investors gathered at the Real Estate Future Forum in Riyadh, where key announcements highlighted Saudi Arabia’s ongoing focus on property development, investment strategies, and tourism expansion.

Building on these initiatives, the Governor of Asir Region Prince Turki Bin Talal revealed that the Public Investment Fund has nine projects in development, with four already launched and five underway. 

“The largest PIF projects in the Kingdom are in the Asir region,” the governor said, adding that this is accompanied by an investment portfolio valued at SR30 billion ($7.9 billion).

Regarding hospitality, the governor highlighted that Asir currently has between 6,000 and 8,000 approved and licensed hotel rooms.

In line with this momentum, he also announced that the Ministry of Sports has officially recognized Abha’s World Cup bid as the best in the Kingdom.

Meanwhile, Prince Saud Bin Talal, governor of Al-Ahsa and acting CEO of the Al-Ahsa Development Authority, outlined plans for expanding the hospitality sector in the region. 

“In our pipeline, we have more than seven or eight hotels and over 25 rural lodges. Among the key developments are three five-star hotels: Hilton, Radisson Blu, and Hilton Garden Inn,” he said.

The Saudi Minister of Tourism Ahmed Al-Khateeb underscored the rapid growth of the hospitality sector, revealing that the Kingdom currently has 475,000 hotel rooms, with projections to reach 675,000 by 2030. 

Regarding hyper-tourism, he discussed the impact of the King Salman International Airport expansion and Riyadh Air, forecasting that at least 50 percent of the Kingdom’s tourism will be centered in the capital, while ensuring that efforts will not push the figure beyond 80–90 percent.

The expansion of King Salman International Airport is a key milestone in Saudi Arabia’s aviation growth, aligning with the country’s Vision 2030 objectives.

The first phase of the Terminal 1 expansion at King Khalid International Airport in Riyadh was inaugurated on Jan. 8, increasing the airport’s capacity to accommodate up to 7 million passengers annually.

This follows the completion of Terminals 3 and 4 in November 2022. 

The airport has consistently been recognized as the Kingdom’s top-performing facility, upholding the highest compliance and operational standards.

In the financial sector, the Chairman of the Capital Market Authority Mohammed El-Kuwaiz highlighted the increasing focus on Saudi Arabia’s real estate investment market. 

“Today, we have approximately 55 files for IPOs (initial public offerings) in the financial market, covering various sizes and companies. Around 20 percent of these files belong to real estate companies of different types,” he said.

He emphasized the growing diversity in real estate services, including developers and marketers, aligning with the Kingdom’s goal of securing financing across all productive sectors.

El-Kuwaiz further provided insights into best practices for listing companies, saying: “The best time to list a company is when its financial situation is stable and its funding needs are clear.”

He added: “If you’re prepared to share information as if they were partners, involve them in decision-making as if they were partners, and handle conflicts of interest as if they were partners, then you’re welcome.”

In a landmark decision, he also announced that listed companies owning properties in Makkah and Madinah can now welcome foreign investors, effective immediately. “On behalf of the CMA, we congratulate these companies,” he said.

Foreigners can now invest in Saudi-listed firms owning real estate in Makkah and Madinah, with non-Saudi ownership capped at 49 percent. The CMA said in a press release that the move enhances market competitiveness and supports Vision 2030.

The Real Estate Future Forum, running from Jan. 27 to 29 at the Four Seasons Hotel in Riyadh, aims to serve as a global platform for shaping the future of real estate. 

With over 300 speakers from 85 countries, the event will focus on innovations, sustainability efforts, and investment strategies driving the sector under the theme, “Future for Humanity: Shaping Dreams into Reality.”


Pakistan court sentences four men to death for ‘online blasphemy’

Pakistan court sentences four men to death for ‘online blasphemy’
Updated 2 min 5 sec ago
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Pakistan court sentences four men to death for ‘online blasphemy’

Pakistan court sentences four men to death for ‘online blasphemy’
  • Many of the online blasphemy cases are being brought to trial by private “vigilante groups” led by lawyers
  • National Commission for Human Rights says 767 people jailed, awaiting trial for blasphemy allegations 

ISLAMABAD: A Pakistan court has sentenced four men to death for posting blasphemous content online, a member of a group of “vigilante” private lawyers that brought the prosecution said on Monday.
The four men were sentenced in Rawalpindi, the garrison city that neighbors the capital Islamabad, Rao Abdur Raheem, a lawyer from the Legal Commission on Blasphemy Pakistan (LCBP), told AFP.
Blasphemy is an incendiary charge in Muslim-majority Pakistan, where even unsubstantiated accusations can incite public outrage and lead to lynchings.
Pakistan has witnessed a sharp increase in the prosecution of “online blasphemy” cases, with private groups bringing charges against hundreds of young individuals for allegedly committing blasphemy.
“They were sentenced to death... on Friday for spreading blasphemous content online against the Prophet Muhammad and the Qur’an,” Raheem told AFP on Monday.
“Our case was supported by forensic evidence from the devices used in this heinous act,” he said of one of the LCBP’s latest prosecutions.
Despite the conviction, Pakistan has never executed anyone for blasphemy.
A member of a support group formed by the families confirmed the sentence to AFP and said the group would challenge the conviction.
“The pattern of arrests and prosecutions in this case is consistent with previous ones,” said the support group member, who spoke on condition of anonymity due to security concerns.
“We urge the government to establish a commission to investigate the rise in these cases before these young individuals spend the best years of their lives behind bars.”
Many of the online blasphemy cases are being brought to trial by private “vigilante groups” led by lawyers and supported by volunteers who scour the Internet for offenders, rights groups and police say.
The LCBP is the most active of those groups in Pakistan.
Sheraz Ahmad Farooqi, one of the group’s leaders, told AFP in October that “God has chosen them for this noble cause.”
A report published by the government-run National Commission for Human Rights in October last year said there were 767 people, mostly young men, in jail awaiting trial over blasphemy allegations.
“In these cases, due process was notably disregarded, with significant procedural violations observed at multiple stages,” the report said.
“Arrests were often carried out by private individuals rather than law enforcement.”
Cases can drag through the courts for years, although death penalties are often commuted to life in prison on appeal at the Supreme Court.
A special court was formed in September to expedite the dozens of pending cases.


Pakistan’s Shahzeb Rind successfully defends lightweight title at Karate event in Florida 

Pakistan’s Shahzeb Rind successfully defends lightweight title at Karate event in Florida 
Updated 13 min 6 sec ago
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Pakistan’s Shahzeb Rind successfully defends lightweight title at Karate event in Florida 

Pakistan’s Shahzeb Rind successfully defends lightweight title at Karate event in Florida 
  • Rind, 26, defeats three-time world champion Edgars Skivers 7-0 
  • Rind boasts a combined Wushu and Kickboxing record of 75-4

ISLAMABAD: Pakistani Karate fighter Shahzeb Rind successfully defended his lightweight title against former three-time world champion Edgars Skrivers, defeating him 7-0 at the Karate Combat (KC) 52 event in Miami, the Pakistan Mixed Martial Arts Federation (PMMAF) announced on Sunday.

The KC52, a professional full-contact karate league, is part of a global karate MMA series featuring skilled fighters in action-packed competitions. 

Rind, who hails from the impoverished southwestern Balochistan province, won his first martial arts title in 2011 after claiming victory in a provincial-level competition. His first national title came in 2019 when he triumphed at the National Games in the northwestern Khyber Pakhtunkhwa province.

During the two and half years of an undefeated Karate Combat career, Rind has fought fighters from North America, Peru, Venezuela, Brazil, France and India.

“In a stunning display of skill and determination, Rind has claimed his second championship title after a hard-fought victory against Edgars Skrivers,” the PMMAF said. 

“The intense showdown unfolded on Friday in Miami, captivating audiences with its electrifying energy and showcasing the best of competitive spirit.”

The statement said Rind delivered an “extraordinary” performance that kept his fans excited throughout the match, adding that his “dedication, relentless training, and remarkable skill” had solidified his position as one of the top contenders.

“Rind’s triumph is a testament to the power of perseverance and hard work,” the sports body said. “As fans celebrate this incredible achievement, they eagerly await what the future holds for this rising star.”

The Pakistan Embassy in New York congratulated Rind on defending his title.

“Heartfelt congratulations to MMA fighter Shahzaib Rind, the brave son of Pakistan who hails from Balochistan, on defending his lightweight title in Miami, Florida, USA and becoming the world champion for the second time,” the embassy said on X. “Shahzaib Rind dedicated his victory to the people of Pakistan.”

Rind boasts a combined Wushu and Kickboxing record of 75-4, the majority of which was attained while training himself by watching YouTube videos. He is currently training under Asim Zaidi at the renowned Goat Shed gym in Miami.

Zaidi is the president of Karate Combat, a brand that promotes the first professional full-contact karate league, hosting worldwide events since April 2018.


Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities

Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities
Updated 33 min 27 sec ago
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Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities

Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities
  • Pakistan’s Prime Minister Shehbaz Sharif chairs review meeting on Pakistan Railways performance
  • IMF has pressed Pakistan to improve governance in state-owned assets for financial bailouts

ISLAMABAD: Pakistan Railways has sacked 18% of its “unnecessary staff” in a bid to improve the state-owned asset’s performance, Prime Minister Shehbaz Sharif was briefed on Monday according to a statement from his office, as Islamabad moves to implement ambitious reforms mandated by the International Monetary Fund (IMF) in exchange for a financial bailout. 

Improving governance in loss-making state-owned enterprises (SOEs) has long been on the IMF’s list of recommendations for Pakistan, which has turned to the international lender for frequent financial bailouts, the latest of which was a $7 billion loan last year. Pakistan’s prolonged economic crisis has forced the country to implement an ambitious reforms program designed by the IMF, which includes privatizing public sector organizations and laying off unnecessary staff to enhance their revenue.

Pakistan’s SOEs have accumulated losses in the billions over the years due to mismanagement, operational challenges, high debt loads, inefficiencies and alleged corruption. Pakistan’s railways sector has also been poorly managed over the years, with the country witnessing several train accidents over the past few years due to decades-old signal systems and tracks.

Sharif chaired a meeting to review the railway sector’s performance on Monday which was attended by senior cabinet ministers and officials, the Prime Minister’s Office (PMO) said in a statement. 

“As part of the Pakistan Railways rightsizing process, 18% of unnecessary staff has been laid off,” Sharif was briefed during the meeting, according to the PMO. 

Sharif issued instructions to Pakistan Railways to attract passengers in a competitive manner, calling on the organization to provide better travel services to passengers through public-private partnerships. 

He also instructed railways to hire professional and capable manpower, and replace its old system with modern technology that is more in line with today’s age, the PMO said. 

Sharif was briefed that the railways suffered losses of Rs10 billion during the devastating floods of 2022, during which most of its tracks remained underwater for 35 days. 

“Pakistan Railways improved its performance through various measures after the 2022 floods and has so far earned a profit equal to the initial cost of its freight operations,” the PM was told. 

The Pakistani premier urged railways to use its land for business activities in collaboration with the private sector, directing it to formulate a strategy to increase trade in the region, especially with Central Asian countries. 


Pakistan ex-PM Imran Khan, wife appeal graft convictions: lawyer

Pakistan ex-PM Imran Khan, wife appeal graft convictions: lawyer
Updated 49 min 54 sec ago
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Pakistan ex-PM Imran Khan, wife appeal graft convictions: lawyer

Pakistan ex-PM Imran Khan, wife appeal graft convictions: lawyer
  • Imran Khan was sentenced to 14 years and his wife to seven earlier this month
  • A special graft court found the pair guilty of ‘corruption and corrupt practices’

ISLAMABAD: Pakistan’s jailed former prime minister Imran Khan and his wife Bushra Bibi on Monday appealed their convictions for graft, his lawyer said.
Khan was sentenced to 14 years and his wife to seven earlier this month in the latest case to be brought against them.
“We have filed appeals today and in the next few days it will go through clerical processes and then it will be fixed for a hearing,” Khan’s lawyer Khalid Yousaf Chaudhry said.
The papers were filed at the Islamabad High Court.
A special graft court found the pair guilty of “corruption and corrupt practices” over a welfare foundation they established together called the Al-Qadir Trust.
Khan, 72, has been held in custody since August 2023 charged in around 200 cases which he claims are politically motivated.