Alat boosts sustainable manufacturing capabilities with the launch of electrification and AI infrastructure business

Alat boosts sustainable manufacturing capabilities with the launch of electrification and AI infrastructure business

Alat, a PIF company focused on transforming global industries (electronics and industrials) and creating a world-class manufacturing hub in the Kingdom of Saudi Arabia, has announced the launch of two new business units – Electrification and AI Infrastructure.

The two business units will address unprecedented global demand for AI infrastructure and the urgent need to support global energy transition by strengthening electricity grid technology.

Electrification is a key goal for Alat to not only strengthen grid technology for robust and increased use of technology, but also as the growth of electricity grows exponentially, with electricity being the key energy produced by solar, wind and hydrogen clean energy to power industrial processes.

By combining Saudi Arabia’s rich resources of solar energy and other clean energy sources with electric powered industrial systems, Alat intends to manufacture solutions that will contribute significantly to the global energy transition and the decarbonisation of industry.

The Electrification Business Unit will focus on transmission and distribution technologies. It will also include the connection of renewable energy sources to the grid and latest technologies for gas and hydrogen generation and compression.

The AI Infrastructure business unit is focused on technology necessary for AI capabilities and encompasses network and communications equipment, servers, data centre networking equipment, data centre storage, industrial Edge servers and industry 4.0 computing. The adoption of AI in combination with other industry 4.0 technologies including robotics, will enable a leap forward in smart manufacturing and the creation of intelligent factories. The AI Infrastructure Business Unit will not only manufacture solutions for Alat customers but will also contribute to Alat’s advanced technology goals.

“I am pleased to announce these two exciting new divisions as they will make a significant contribution to Alat’s overall strategic goal of developing an advanced, sustainable future for industry,” said Amit Midha, Global CEO at Alat.

The global electrification market size reached US$73.64 billion in 2022 and it is expected to hit around US$172.9 billion by 2032, growing at a CAGR of 8.91% between 2023 and 2032. The global AI Infrastructure market is experiencing remarkable growth, projected to reach a staggering US$460.5 billion by 2033, with a compelling CAGR of 28.3% over the decade.

This growth is fuelled by the increasing adoption of AI technologies across various industries, as organisations recognise the potential of AI to drive innovation, enhance decision-making processes and automate tasks.

The launch of these business units is driven by global trends for energy-efficient computing, to mitigate the environmental impact of large-scale data processing and renewable energy integration by leveraging renewable energy sources such as solar, wind and hydroelectric power into data centres and computing facilities.

In addition, the future of AI infrastructure entails the design and construction of green data centres that prioritise energy efficiency, sustainability and environmental responsibility. AI infrastructure also intersects with electrification efforts in transportation, particularly in the development of autonomous vehicles and electric mobility solutions. AI-powered transportation systems leverage data analytics, Machine Learning algorithms and sensor technologies to optimise route planning, traffic management and vehicle performance, contributing to the widespread adoption of electric vehicles and reducing reliance on fossil fuels.

AI plays a crucial role in optimising the operation and management of electric grids, enabling utilities to improve efficiency, reliability and sustainability. AI-driven grid optimisation solutions leverage advanced analytics, predictive modelling and real-time control algorithms to balance supply and demand, integrate renewable energy sources and enhance grid resilience in the face of disruptions or fluctuations.

Alat now has nine business units focused on sustainable technology manufacturing. Alat will invest US$100 billion by 2030 across these business units to develop key partnerships and build advanced manufacturing capabilities in Saudi Arabia to bring jobs and economic diversification to the Kingdom.

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