The Banking Executive Magazine - April 2025

the BANKING EXECUTIVE 40 ISSUE 196 APRIL 2025 FinTech and AI Chornicle The pace at which artificial intelli- gence is being adopted and de- ployed across sectors is no longer a novelty. It is an inevitability. But be- hind the scenes of impressive gener- ative outputs and algorithmic sophistication lies a story far less glamorous—a soaring demand for energy and natural resources that could soon exert unprecedented pressure on global infrastructure, en- vironmental sustainability, and fiscal policies. For senior decision-makers across the Arab world, especially those shaping financial systems, this evolving energy-intensive reality de- mands closer attention. THE STEEP CLIMB IN AI ENERGY DEMANDS What was once a modest footprint is fast becoming a formidable presence in the global energy landscape. The computing requirements of today’s advanced AI models are not growing incrementally—they are surging. Current projections suggest AI-re- lated electricity consumption is dou- bling at such a rate that it threatens to outpace even the most ambitious energy grid expansion plans. By 2025, AI-dedicated data centres alone may consume more power than the total capacity of nations like the Netherlands or major U.S. states such as California. AI’S GROWING APPETITE FOR ENERGY: A WAKE-UP CALL FOR FINANCIAL LEADERS IN THE ARAB WORLD