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Rabat – As Morocco is rapidly expanding its offering of data centers to power AI (Artificial Intelligence), Nvidia CEO Jensen Huang on Friday highlighted the need for vast sources of renewable energy, touting nuclear energy as one of the few viable options.
Huang told Bloomberg Television that “nuclear is wonderful as one of the sources of energy, one of the sources of sustainable energy.” The Nvidia CEO assed that “it won’t be the only one. We’re going to need energy from all sources and balance the availability and the cost of energy as well as the sustainability over time.”
It is clear that Morocco has its work cut out when it comes to expanding its energy infrastructure to accommodate for the increasing global need for computing power in data centers. Driven by the ongoing AI revolution, tech companies around the world are shelling out billions to build new data centers.
Currently a variety of countries are rapidly expanding and building new data centers. The United States leads the pack with 6,381 data centers, while countries like Germany, South Korea, China, and India are undergoing rapid growth in data centers that support AI or cloud technology.
Morocco has recently become a popular destination for investment in local data centers as the need for computers to train and run AI models has led to a race between some of the world’s largest tech firms.
As Morocco has transitioned from a limited set of data centers to fill domestic telecom needs, the country’s green energy potential and investor-friendly landscape has prompted increasing interest among international investors and AI-oriented companies.
Morocco’s entry into the growing data center market truly took off in 2023 with the launch of the $90 million N+ONE Data Centers initiative. In May, US AI infrastructure startup Lozera.AI announced plans for a vast 386 MW data center in Tetouan, Morocco. The project is set to cost $500 million, with construction set to start at the end of the year.
The rapid growth in interest in the strategically-located country has seen recent reports tout Morocco as an “emerging leader” in the regional data center market.
Read also: Report Ranks Morocco as Emerging Leader in North Africa’s Data Center Market
With millions of foreign currency flowing into the emerging new market, it is only natural that Morocco’s government is welcoming the investment and facilitating the entry of new players eager to expand Morocco’s data center capacity.
Still, Huang Jensen’s statement could pose as a warning to countries like Morocco where the capacity for energy generation is limited. Data centers are incredibly energy-demanding and require constant operation.
Goldman Sachs has estimated that energy needs for AI data centers will increase from the current 400 Terawatt Hours to more than 1,000 Twh by 2030. In 2023, Goldman Sachs estimates, AI will require 19% of all electricity generated on earth. Preparing the European power grid for this increased need for electricity would cost an estimated $1 trillion, the same report predicts.
These trends could become crucial for the growth and sustainability of Morocco’s new data center market. The country’s role as a regional leader on green energy is a key part of its appeal to investors, but far greater investment in sustainable energy generation is likely to be required as the percentage of Moroccan electricity that is consumed by data centers grows.
Similarly, increased energy needs of data centers could threaten Morocco’s goal of generating 52% of its energy needs from renewables. The reality is that Morocco still relies on fossil fuels for 90% of its domestic energy needs.
The country could face the risk where new expansions of renewable energy are largely dedicated to data centers, while massive fossil fuel imports remain direly needed.
Still, the popularity of data centers could also provide a powerful incentive to boost investment in local renewables, as each new solar or wind initiative could grow Morocco’s appeal as a palace to build “green” data centers.
