Alat Company enhances sustainable manufacturing capabilities by launching two business units for electrical transformation and artificial intelligence infrastructure

Electrical Industries Company, a wholly owned subsidiary of the Public Investment Fund (PIF), which focuses on driving the transformation of global industries (electronics and advanced industries) and establishing a world-class manufacturing hub in the Kingdom, announced today at the Milken Institute conference in Los Angeles, USA, the launch of two new business units for electrification and AI infrastructure. The two business units will work to meet the unprecedented global demand for AI infrastructure solutions and the urgent need to support the global energy transition by enhancing electricity grid technologies. Electrification (the transition to clean electricity sources) is a key goal for Electrical Industries Company; with the aim of enhancing grid technologies, spreading the use of advanced technologies, and developing electricity generation as a primary source of energy produced through solar, wind, and clean hydrogen energy to power industrial processes. Electrical Industries intends to manufacture solutions that will contribute to the global energy transition and decarbonization of the industrial sector, by investing in Saudi Arabia’s rich resources of solar energy, other clean energy sources, and electrically powered industrial systems. The Electric Transformation Business Unit will focus on transmission and distribution technologies, and will also include connecting renewable energy sources to the grid and providing cutting-edge technologies for gas and hydrogen generation and compression. On the other hand, the AI ​​Infrastructure Business Unit will focus on technologies needed to enhance AI capabilities, including network and communications equipment and servers, data center network equipment, data storage centers, industrial edge servers, and Industry 4.0 computing. The adoption of AI, along with other Industry 4.0 technologies, including robotics, is essential to achieving a quantum leap in smart manufacturing and smart factories. The AI ​​Infrastructure Business Unit will lead the development of innovative solutions for Alat’s customers and will also contribute to Alat’s advanced technology goals. Amit Meda, Global CEO of Alat, expressed his delight at announcing these two new units, as they will make a significant contribution to Alat’s overall strategic goal of developing an advanced and sustainable future for industry. The global electricity market was valued at USD 73.64 billion in 2022 and is expected to reach around USD 172.9 billion by 2032, growing at a CAGR of 8.91% between 2023 and 2032. The global AI infrastructure market is witnessing significant growth and is expected to reach USD 460.5 billion by 2033, growing at a CAGR of 28.3% over the decade. This growth is driven by the increasing adoption of AI technologies across various sectors, as companies realize the potential of AI and its ability to drive innovation, enhance decision-making, and automate tasks. The launch of these two business units is driven by the global trends of energy-efficient computing that aim to mitigate the environmental impact of large-scale data processing and integrate renewable energy, by leveraging clean energy sources such as solar, wind, and hydropower to power data centers and computing facilities. In addition, the future of AI infrastructure requires the design and construction of sustainable data centers that prioritize energy efficiency, sustainability, and environmental responsibility. AI infrastructure also intersects with transportation electrification, 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 improve road maps, traffic management, and vehicle performance, contributing to the widespread adoption of electric vehicles and reducing reliance on fossil fuels.Today, AI plays a critical role in improving the operation and management of electrical grids, enabling utilities to enhance efficiency, reliability and sustainability. AI-powered grid-optimized solutions leverage advanced analytics, predictive modeling and real-time control algorithms to balance supply and demand, integrate renewable energy sources and enhance grid resilience to disruptions or fluctuations. A gold sponsor of the Milken Institute conference in Los Angeles, USA, Alat now has nine business units focused on manufacturing sustainable technologies. Alat will invest SAR 375 billion by 2030 in these business units to develop important partnerships and build advanced manufacturing capabilities in Saudi Arabia to create jobs and diversify the Kingdom’s economy. Alat is focused on transforming global sectors (such as electronics and industries) and establishing a world-class manufacturing hub in the Kingdom powered by clean energy to build a better tomorrow. Alat will adopt sustainable manufacturing practices to help global companies reduce their emissions and move towards carbon-free manufacturing. Established and funded by the Public Investment Fund, Alat is a key enabler of the Kingdom’s Vision 2030 goals of promoting economic diversification, industrial development, innovation and job creation. The company’s primary goal is to attract global companies to adopt sustainable manufacturing solutions in the Kingdom, leveraging the country’s abundant clean energy resources, unique geographic location and investments in the technology sector. Its key strategic areas of work will initially focus on advanced electronics, smart buildings, smart electronics, smart home appliances, smart health technologies, advanced industries, semiconductors, infrastructure and modern technologies. For more information, please visit the company’s website at alat.com