Doha, July 01 (QNA) - Artificial intelligence is set to become a major driver of global electricity demand, with the rapid expansion of data centers placing increasing pressure on energy infrastructure, according to a senior Siemens executive.

In an interview with Qatar News Agency (QNA), Hakan Ozdemir, CEO of Siemens Smart Infrastructure Middle East and Siemens Qatar, said AI and digitalization are becoming the twin pillars of the energy sector's transformation.

However, he warned that the growing adoption of AI technologies will significantly increase electricity consumption because of the computing power required to operate them.

Ozdemir said electricity use by data centers is expected to double by 2030, while cooling systems alone account for between 30% and 40% of their total energy consumption.

He said findings from Siemens' Infrastructure Transition Monitor: Middle East 2026 reflected widespread awareness of these challenges. According to the survey, 62% of senior executives believe AI will reshape infrastructure operations within the next three years, while 57% said they are already using AI technologies to support carbon emissions reduction.

Rather than limiting investment in AI, Ozdemir argued that the priority should be using the technology to improve the efficiency of the infrastructure that supports it, as well as the energy systems that power it.

He said Siemens offers integrated solutions covering utility electricity networks, smart buildings and technologies capable of reducing the energy required for cooling data centers by up to 30%.

On the role of digitalization in the energy transition, Ozdemir said it has become the main driver of change across the sector. According to the survey, 68% of organizations in the Middle East identified digitalization as the most important factor enabling the energy transition.

He said digital technologies have moved beyond supporting sustainability goals to delivering measurable operational improvements through real-time data, greater transparency and smarter control systems, helping organizations improve energy efficiency and reduce carbon emissions.

Ozdemir also highlighted the limited capacity of electricity grids as one of the biggest obstacles to accelerating the shift towards cleaner energy. He said 62% of respondents in the survey believe existing grid infrastructure remains a barrier to wider electrification.

Ozdemir said modernizing electricity grids requires more than simply expanding their capacity. Instead, he argued, energy systems need to be redesigned to integrate energy storage, flexible demand management, advanced digital controls and data integration, while also strengthening collaboration between utilities, governments and major energy consumers.

According to Siemens' Infrastructure Transition Monitor: Middle East 2026, 64% of respondents identified smart grids and grid management software as key enablers of the energy transition, while 66% said electricity, gas, hydrogen and transport systems should be managed through a single digital platform.

Ozdemir said changing patterns of energy consumption are driving the need for closer coordination between grid operators and large industrial users. As more data centers, green hydrogen facilities and industrial complexes are connected to electricity networks, he said, electricity consumption, storage and local power generation must be managed in real time to maximize efficiency and reliability.

He also highlighted the growing importance of cross-border electricity interconnections, describing them as one of the key pillars for improving the resilience and reliability of power supplies. The Siemens index ranked regional grid interconnection among the three most important priorities for the future of electricity networks in the Middle East.

Ozdemir pointed to progress already made through the Gulf Cooperation Council's electricity interconnection network and the Saudi Arabia-Egypt electricity interconnection project, saying both initiatives lay the foundations for a more integrated power grid linking the Middle East and North Africa, with the potential for future connections to European electricity networks.

Looking ahead, he said the next phase of regional cooperation should move beyond physical interconnections towards the development of intelligent electricity networks capable of sharing data in real time and using artificial intelligence to optimize grid management and direct electricity to where it is needed most.

According to the survey, 70% of respondents believe greater data sharing between energy producers and consumers would directly improve the efficiency of energy systems.

Ozdemir said technologies including smart grids, digital substations and AI-enabled grid management systems would help build a more integrated and resilient electricity infrastructure while supporting regional energy integration and the long-term sustainability of the power sector. (QNA)