Saudi Arabia will capitalize on its abundant supply of cheap natural gas and renewables to transform the kingdom into a global leader in artificial intelligence, Aramco CEO Amin Nasser told CNBC in an interview.
Aramco, the world’s largest oil company, disclosed in late October that it plans acquire a significant minority stake in the new artificial intelligence company Humain. Saudi Arabia’s sovereign wealth fund, PIF, is the majority owner of Humain, which launched in May.
Humain will become Saudi’s national AI champion and will grow into a leader in the space, Nasser told CNBC’s Sara Eisen in an interview that aired Tuesday. Humain CEO Tareq Amin has said Saudi is aiming to become the third biggest player in AI worldwide behind only the U.S. and China.
“Here, if you want renewable, you will find the lowest cost renewable,” Nasser said. “If you want gas, you will find the lowest cost gas. Energy is available and land is also available to build all these things.”
Data centers that train and run AI applications are requiring tremendous amounts of electricity, which is typically generated either by renewables and natural gas. The facilities will consume almost four times the electricity of the global electric vehicle fleet by 2030, Nasser said. They will primarily be powered by gas but also renewables, the CEO said.
A significant portion of Armaco’s capital spending is going toward boosting natural gas production more than 60% by 2030 to meet demand and toward the investment in Humain, Nasser said. Aramco is targeting capital expenditures of $52 billion to $58 billion this year, he said.
Armaco sees oil and gas demand growing for decades to come on consumption in developing markets particularly in Asia, Nasser said. Demand will grow by 1.1 million barrels per day to 1.3 million bpd this year and almost the same in 2026, he said.
“There is huge potential for growth in emerging economies,” he said.