The Geostrategic Alternative to Davos in the Desert

A combination of the Trifecta of Energy resources and new discoveries provide an alternative to Saudi Arabia’s Davos in the Desert.

Forbes: During FII’s (Future Investment Initiative) opening session, Yasir Al Rumayyan:

chairman of Saudi’s $930 billion sovereign wealth fund, told tech companies to build the massive data centers needed to train and run new AI systems in the kingdom to take advantage of its energy resources, global location, and available land.

“The reason why we are investing in AI is Saudi Arabia is very well positioned to be a global hub, not only a regional hub,” Rumayyan said.

The kingdom’s pitch on AI was met with a warm reception from some of the Wall Street and Silicon Valley power brokers who flew into the summit in the Saudi capital of Riyadh. “The presence of very large pools of capital, energy and the ability to build the data centers will be a key point,” said Eric Schmidt:

Alphabet’s former executive chairman.

Schmidt endorsed the kingdom’s pitch noting that AI training and inference could be run from data centers based there to sidestep constraints on electricity generation and transmission in the United States. “There’s every reason to think that Saudi can become one of the big winners here if it puts the money in place wisely and quickly,” said Schmidt.

A day later, Rumayyan signed a deal with Google to bring its new AI chips to its data center in the kingdom. Oracle already has a $1.5 billion data center in the country. The demand for energy to fuel new data center projects has led to a flurry of infrastructure investments over the last year. In the United States, Microsoft announced plans in September to bring the mothballed Three Mile Island nuclear reactor back online, Amazon unveiled three major nuclear deals earlier this month, while OpenAI's Sam Altman has reportedly lobbied for data centers so big they would have the same energy demands as 4 million homes. Meanwhile, Blackstone CEO Stephen Schwarzman warned that the demands for electricity to fuel AI compute could see electricity demand soar by 40% over the next ten years.

My Comment: The Hemispherical Alternative

At the same time that AI data centers are imposing massive growth on the demand for energy in the U.S, ExxonMobil, Hess and CNOCC have discovered 11 billion barrels of oil 110 miles off the coast of Guyana and a massive amount of natural gas there as well. ExxonMobil reportedly plans to exploit the oil while using the gas to fuel Guyana, a country that is part of the Amazon ecosystem:

Exploiting these massive natural gas resources located so close to the Gulf of Mexico, our processing units located near the Gulf and the connection to America’s 250,000 miles of natural gas pipelines:

is important geopolitically and geostrategiically as well as logistically.

Being able to place AI data centers in the U.S. solves a jobs problem as long as an estimated 400,000 workers are provided the education, the skillsets to function effectively in this new jobs environment. Furthermore, the massive U.S. military assets positioned in the Western Hemisphere are much more strategically placed to protect our interests in the Western Hemisphere than deploying them in the never-ending wars of the Middle East.

Finally, our foes are busy advancing?new currencies, especially cryptocurrency, a currency that undermines the value of the USD. Trump is an acolyte. Warren Buffett has just placed $325 billion in U.S. Treasury bills, a sure sign that a correction is soon arriving. In my next article, I will discuss how Buffett's investment in America and in the U.S. Currency, a currency and purpose we understand, represents an alternative to Davos in the Desert.

We are what we invest in!

Why not invest in the natural gas offshore of Guyana to more clean energy to power our domestically located data centers and concentrate our forces in protecting the sea lanes of the Atlantic, between Holland’s ASML and the U.S, rather than reacting to the fires lit by communism throughout the world, thus making much more intelligent use of our limited resources?

ReplyForward

Add reaction