The rapid expansion of artificial intelligence is driving a surge in electricity demand as tech companies build larger data centers that need continuous, reliable power. Unlike many industrial facilities, AI data centers run around the clock, making them hard to supply with solar and wind alone due to their variability. This is pushing utilities and governments to invest more in energy storage, smarter grids, and flexible demand management rather than just adding more renewable capacity. Technology firms are signing long-term clean electricity purchase agreements that provide financial certainty for new renewable projects. Interest is also growing in advanced geothermal energy, which can deliver carbon-free baseload power. For Oman, which has ambitious renewable targets and a green hydrogen strategy, the shift presents an opportunity to attract data centers and energy-intensive industries if it strengthens grid flexibility and invests in storage.
