US Sees UAE as a Key Ally in the Energy ‘Arms Race’ to Fuel the AI Revolution

The competition for supremacy in artificial intelligence (AI) is intensifying, but as Doug Burgum, US Secretary of the Interior, noted, the race is not about chips, data, or algorithms – it’s about energy. In discussing the importance of energy capacity, Burgum noted that we are living through an “arms race to build electrical power fast.”

His message is clear: the countries that can produce and deliver, and sustain massive amounts of reliable energy, will lead the AI revolution. With this in mind, the United States has recognised the United Arab Emirates (UAE) as a critical partner in its quest to secure and expand energy capacity for its future.

Why Energy is More Important Than Ever

The AI revolution has made energy the world’s most strategic resource. Massive AI models and corresponding data centres, and compute infrastructure consume extraordinary amounts of electricity in order to operate continuously.

Burgum emphasised that while the world is focused on semiconductors and software, the true foundation of AI leadership is in owning abundant and reliable energy.

“If we don’t have the power, we’re going to lose the AI arms race.”

This recognition elevates energy security and innovation to new levels of credibility in global competitiveness, ranking alongside or equal to defence or trade policy.

The UAE’s Expanding Role in the Energy-AI Equation

The United Arab Emirates is one of the most innovative energy thinkers and practitioners in the world. With a long history of oil and gas experience, the UAE’s investment in renewable energy and artificial intelligence will make it an important link between traditional energy and future energy systems.

Reasons why the UAE is an important ally to the US

• Capital and investment capabilities

Energy companies and sovereign wealth funds in the UAE are committed to investing in programs and projects related to sustainability and digital energy.

• Use of AI in energy

The country is using AI in oil exploration, to optimise grids, and in the management of modern renewable energy functions.

• Geography

It is situated at the intersection of multiple continents in a strategic location and is also a global centre for logistics, innovation, and data connectivity.

• Visionary leadership

The Net Zero 2050 strategy in the UAE connects with the US’s goal of a resilient energy future based on technology and investing in AI-powered energy technology.

This makes the UAE a natural contributing partner in the global effort to balance energy development and a sustainable future.

U.S. – UAE Partnership: Fueling the Future

The U.S.-UAE partnership focuses on applying AI and advanced technologies relevant to the energy sector at a global level. This partnership intends to: 

• Accelerate clean energy programs, such as renewable energy, hydrogen and carbon capture.
• Design AI-enabled grids to enhance efficiency, reliability, and sustainability.
• Develop data centres and digital infrastructure that can keep pace with the energy demands of AI industries.
• Make energy supplies more secure by ensuring stable supply chains to reduce burdens on non-allied producers.
• Train the next generation of energy and AI thinkers through joint educational programs and technical training.

By leveraging U.S. technological innovation with U.A.E. investment and energy expertise, both countries can position themselves as leaders of the energy-AI ecosystem globally.

The Strategic Importance of Energy in the AI Race

AI is expected to consume multiple times the energy in the next decade. Data centres can consume a total of up to 8% of all global electricity by 2030. This has now turned electricity into a geopolitical currency. Those who hold energy capacity control innovation.

Key Takeaways from Burgum’s Vision

Energy is a matter of national security: A healthy energy base enables technological sovereignty.

AI factories must have constant power: Energy interruptions or fluctuations in the grid can derail AI models.

Collaboration is necessary: It is impossible to replicate the benefit of energy-rich countries, technological innovation-driven countries like the UAE, to work alongside the US to promote AI growth and challenges.

Economic and Security Implications

The collaboration between these two countries has far-reaching implications for both nations and the global economy:

• Economic growth

By developing state-of-the-art energy and AI capabilities, both nations are building infrastructure that will attract investors and innovators from around the world.

• Climate leadership

This cooperation reinforces both nations’ dedication to cleaner energy, along with improving carbon emissions.

• National security

Investing in energy systems will ensure our protection from external shocks, cyberattacks and geopolitical instability.

• Technological leadership

The cooperation enables both nations to become leaders in the development of energy-efficient AI systems to provide their nation with a competitive advantage.

Looking Ahead: A Unified Vision for an AI-Enabled Future 

The US-UAE partnership is a collaboration for future energy innovation and digital transformation. It is a mutual recognition that energy leadership cannot be separated from AI leadership. 

In the years ahead, as countries sprint to fuel the next industrial age, partnerships like this will matter for economic purposes and for global security and sustainability.

For both the US and UAE, the pathway is clear: 

– Invest in better energy systems.

– Establish sustainable AI infrastructure. 

– Take the lead to produce an energy future that is balanced, intelligible, and secure. 

As Burgum pithily put it, “The AI arms race is really a race to see who can add the most electricity.” The US and UAE are not just racing against each other — they are partners in power in that race.