Alat, a new company owned by the Public Investment Fund (PIF) of Saudi Arabia, has launched two new business units to tap into growing demand for AI infrastructure and support global energy transition.

The new divisions – Electrification and AI Infrastructure – were announced on Monday at the Milken Institute Conference in Los Angeles, USA, according to a statement.

The Electrification business unit will focus on transmission and distribution technologies and include the connection of renewable energy sources to the grid, as well as latest technologies for gas and hydrogen generation and compression.

The other division will focus on technology necessary for AI capabilities. It will encompass network and communication equipment, servers, data centre networking equipment, data centre storage, industrial edge servers and industry 4.0 computing.

“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,” the statement said.

The global electrification market is expected to expand from $73.64 billion in 2022 to $172.9 billion by 2032, while the global AI infrastructure market is forecast to reach $460.5 billion by 2033, posting a CAGR of 28.3% over the decade.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com