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NASHVILLE: The CEO of a leading tech company has played down concerns over the environmental impact of data centers and said that in areas such as the Gulf there were green options for cooling.

Data centers generate a vast amount of heat and as such need to be continuously cooled.

It is already well documented that data centers are considered to negatively affect the environment through an enormous consumption of electricity in the cooling process, which in turn leads to greenhouse gas emissions and climate change.

The cooling process consumes a significant amount of water, which critics believe can strain local resources — especially in countries such as the UAE and ������Ƶ where there are plans to create world leading data facilities. 

Likewise, the rise of artificial intelligence is further increasing these demands for energy, water, and infrastructure. 

But speaking on the sidelines of the Autodesk AU 2025: The Design & Make Conference the tech company’s president and CEO, Andrew Anagnost, told Arab News that he believed the benefits far outweighed any long-term impact.

And while acknowledging there was an impact, Anagnost added: “But it’s trivial relative to all the other usage out there in the world. And at the same time we’re able to optimize the usage of these tools to have less need for the computing process.”

According to a report published by the UN Environment Programme, on June 12, internet users worldwide have more than doubled while global internet traffic has expanded to 5.54 billion people worldwide.

The report also noted that the International Energy Agency estimated the data centers would “drive more than 20 percent of the growth in electricity demand between and 2030.”

The report went on to explain that many data centers also use significant volumes of water.

“According to the World Economic Forum, a one-megawatt data center can consume up to 25.5 million liters of water each year only for cooling, comparable to the daily water use of around 300,000 people,” the report added.

������Ƶ is already working on the creation of Humain, the Kingdom’s new AI company, with the construction of its first data centers in the Kingdom, which are expected to come online in early 2026.

The centers will be in Riyadh and Dammam, in the Eastern Province, and are expected to launch in the second quarter, each with an initial capacity of up to 100 megawatts.

Depending where you look, data centers can use anything from one megawatt to several hundreds — and in the same type of search up to 300 Saudi homes will use a single megawatt.

But Anagnost said the power used by these centers did not have to be taken from a country’s national grid and as such could be generated on a hyperlocal basis by methods such as nuclear or solar.

“I’m much more worried about other things such as carbon emissions, that are associated with other types of mechanisms and I am not worried about data centers and AI, because everybody’s already building these things to be self-sustaining and use power sources that are actually pretty green in terms of carbon emissions.”

He said that while water consumption was initially comparatively large, once circulated, the center’s water would be contained within and reused once treated and cooled.

The ease of cooling the water used to maintain a suitable temperature in data centers is dependent on differing factors such as the external temperature — in a cold a country the process can be eased by something as straightforward as leaving the door open to allow a flow of cooler air.

Anagnost said the planning in the design of data centers needed to be flexible.

Various factors create “absolutely different ways of passive and active cooling for centers … in the desert you have a lot more sun.”

And that sunlight he said, could be used to generate solar energy, which in turn could be used to power cooling systems.

Whatever the methods used for cooling, the collection of data in centers is going to continue as more processes become digitized.

The engineering and industry sectors waste 95 percent of all data collected.

The introduction of AI is gradually leading to more efficient production methods which can make these sectors and many others more cost effective and less wasteful, with the materials used and the data collected.

RIYADH: ������Ƶ advanced its industrial and investment partnerships with China and Japan through two separate high-level ministerial visits aimed at expanding strategic cooperation, technology transfer, and private-sector investment. 

In Beijing, Minister of Industry and Mineral Resources Bandar Alkhorayef met with leaders of ZGC Group, a government-backed innovation platform, to explore collaborations including advanced manufacturing, renewable energy, smart mobility, and aerospace technologies.  

These discussions included plans for ZGC to establish operations in Riyadh in partnership with the National Industrial Development and Logistics Program. 

These initiatives build on the growing depth of Saudi–China economic ties. China is ������Ƶ’s largest trading partner, accounting for 14 percent of the Kingdom’s exports and 28.9 percent of its imports in May, according to official statistics.   

Alkhorayef’s official visit to China, which runs from Sept, 22 to 26, includes a series of high-level meetings with senior Chinese government officials such as the minister of natural resources, the minister of industry and information technology, the chairman of the National Development and Reform Commission, and the chairman of the State-owned Assets Supervision and Administration Commission.   

He is also scheduled to meet with executives from leading industrial and mining companies including BOE, Kyland, and TBEA, as well as Ganfeng Lithium, China Minmetals Corporation, and Gotion Hi-tech, with discussions focused on technology transfer, advanced manufacturing, and investment opportunities in ������Ƶ.  

As part of the program, the Ministry of Industry and Mineral Resources will sign a work plan with the China Mining Association to strengthen cooperation in the mining sector.  

The initiative is expected to cover knowledge exchange, identification of mineral opportunities, and new efforts to support the growth of ������Ƶ’s mining industry, a central component of Vision 2030.  

The Kingdom will also participate as guest of honor at the China International Industrial Fair in Shanghai in November, where it will present its industrial transformation agenda and highlight opportunities for collaboration with Chinese partners.  

ZGC also presented a detailed showcase of its key factories and future plans for establishing a presence in Riyadh.  

In a press statement published on its official X handle, the ministry stated: “The visit aims to broaden economic partnerships between the two countries, attract high-quality investments, and transfer the latest technologies in the industrial and mining sectors.”  

The minister's tour included visits to several ZGC subsidiaries. These included FlightWin, a company specializing in the manufacturing of helicopters and drones; UISEE, which develops autonomous vehicles used in airports and logistics operations; and China Power Energy Storage Energy, known for its innovations in energy storage and integrated renewable power systems.  

 ZGC Group’s potential entry into Riyadh through NIDLP highlights the relevance of its role as Beijing’s innovation platform.  

The group supports companies across the “Idea–IP–Industry–IPO” chain, making it a strategic partner for localizing advanced manufacturing and research and development in ������Ƶ.   

Subsidiaries such as FlightWin and UISEE align directly with Vision 2030 goals.  

FlightWin’s expertise in helicopters and unmanned aerial vehicles supports the Kingdom’s objective to localize 50 percent of defense procurement and expand aerospace services, while UISEE’s autonomous mobility solutions match efforts to digitize logistics and advance smart-city operations.  

The focus on energy storage technology reflects ������Ƶ’s broader renewable energy transition.   

The Kingdom aims to generate 50 percent of its electricity from renewables by 2030. This has already created demand for large-scale storage.  

Alkhorayef was joined by Saleh Al-Solami, CEO of the National Industrial Development Center, Jamil Al-Ghamdi, acting CEO of NIDLP, and other senior officials from the Saudi industrial and mining ecosystem.  

Saudi-Japan ties strengthen with investment minister visit

In Japan, Minister of Investment Khalid Al-Falih chaired the 8th Saudi-Japan Vision 2030 Committee alongside Japan’s Minister of Economy, Trade and Industry Yoji Muto and State Minister for Foreign Affairs Hisayuki Fujii. The meeting reviewed bilateral progress and concluded with the signing of official minutes to reaffirm commitments under Vision 2030. 

The high-level visit by Al-Falih highlights Saudi-Japanese collaboration, with trade between the two countries reaching $138.2 billion in 2024, making Japan ������Ƶ’s third-largest trading partner, while Japanese investment in the Kingdom totaled $23.1 billion, focused on energy, water and waste management, transport and logistics, and manufacturing. 

On its official X handle, the ministry stated: “The Minister of Investment Khalid Al-Falih met leading financiers at the Saudi-Japan Financial Roundtable to explore sectoral opportunities, financial complementarities, and global challenges, while advancing cooperation between peers in the Kingdom and Japan.” 

It added: “Held under the Saudi–Japan Vision 2030 framework, the roundtable congregated 40 senior leaders of Japan’s major industrial firms. The Ministry of Investment–Keidanren Strategic Investment Platform was launched to foster quality investments and private-sector initiatives.” 

Prince Faisal bin Bandar bin Sultan, chairman of the Saudi Esports Federation, and Masayuki Hyodo, vice chair of Keidanren, also took part in the roundtable discussions.