By Cornelius Matthes, CEO of Dii Desert Energy and the MENA Hydrogen Alliance
The recent work in the framework of our joint study (together with our Lead Partner innio) on Data Centers, the new super offtakers, revealed a key factor of why the middle east is also fast becoming a global front runner for data centers: speed
While the lowest cost solar and wind globally, world class infrastructure, a low cost of capital etc where among big competitive advantages, the factor speed has been an eye opener:
Everyone wants to have data centers rather yesterday than today, the additional required energy, massively increased by AI, brings additional challenges on how to deliver this, but also shows how abundant and fast availability of renewable energy are becoming the key currency of the future.
The Middle East has shown not only to deliver the lowest cost solar and wind in the world, but also in record time!
When we think about this speed factor, it becomes apparent, that here Europe or specifically a country like Germany have to catch up most.
Complex bureaucracy created over the past decades risk to paralyse important developments and throw these regions more and more behind.
Legislation, permitting and certain processes need to be re-assessed in democratic systems, else, countries risk to loose further terrain. We all know about the notoriously complex regulation for hydrogen, or the famous law on green supply chains.
Technology is moving very fast today and even leadership is at risk to be lost in just a few years, with an often complacent approach.
I can only encourage to look at how the Middle East is executing on many things, for sure not all perfect, but a lot to learn.
Also crises, such as Covid or the energy crisis in Europe, following Russia’s invasion of Ukraine, can teach a lot. We should not go back to business as usual.
Speed is such an important factor, and whoever does not understand this will lose the train 😉