Energy Will Play a Greater Role Than AI in Israel’s Future
Overview of Israel’s Energy Potential Amidst AI Growth
In recent discussions among experts in Israel’s technology sector, concerns have been raised about the country lagging in the domain of artificial intelligence (AI). Despite Israel’s strengths in cybersecurity, chip technology, and biotechnology, it lacks a formidable presence in AI at the global level. Instead of entering into an already crowded market for large language models, policymakers and entrepreneurs should focus on solving pressing problems and leverage Israel’s unique advantages.
Harnessing Energy Needs in the Age of AI
The demand for energy is expected to surge as AI technologies expand. By 2026, it is anticipated that energy usage driven by AI and cryptocurrency might exceed 1,000 terawatt-hours, a figure more than double what it was in 2022. This increasing energy requirement presents a significant opportunity for Israel to position itself as a key energy hub rather than simply an AI superpower.
Israel’s geographical location is particularly advantageous, situated near major oil and gas producers in the Gulf—such as Saudi Arabia and the UAE—and energy-demanding nations in Europe. Given the current geopolitical climate, including supply risks resulting from conflicts like the Russia-Ukraine war, this strategic position is crucial.
The Suez Canal and Alternative Energy Transportation
The Suez Canal remains a vital route for oil and gas shipments between the Gulf and Europe. However, geopolitical tensions in the Red Sea and recent incidents like the Ever Given ship blockage raise concerns about the reliability of this route. Therefore, Israel has the opportunity to create new infrastructure—such as pipelines and rail lines connecting Eilat and the Bikaa region to Mediterranean ports like Ashdod and Haifa—which could serve as a secure land-based alternative for energy transportation.
While such infrastructure projects have been suggested, delays and heavy regulations have hindered progress. Prioritizing these developments could help Israel assert itself as a strategic corridor for energy transfer.
The Future of Energy: A Diverse Approach
In considering long-term energy solutions, it’s essential to recognize that fossil fuels are finite resources. While traditional energy sources like oil and gas may seem abundant now, they will eventually deplete. Nuclear energy, although historically criticized, has proven to be a viable option for large-scale energy generation due to its efficiency. Recent advancements in small modular reactors have made this option safer than before. However, political concerns often deter investment.
Israel has the engineering expertise and nuclear research capabilities necessary to excel in nuclear energy production. This would not only ensure a stable energy supply but also attract energy-intensive industries, such as data centers, to establish themselves in areas with reliable energy availability.
In addition to nuclear power, the Negev Desert offers excellent potential for solar energy through its sunny climate. Companies like SolarEdge are already making strides in the photovoltaic technology market within Israel, further promoting the use of renewable energy sources.
Building Strategic Relationships for Stability
Israel’s long-term security is also tied to its relationships with neighboring countries. For instance, Israel supplies liquefied natural gas to Egypt and water resources to Jordan. This interdependence fosters stability and is a factor that neighboring states consider carefully in times of tension.
To secure its future, Israel should work to become indispensable to more nations, thereby creating a network of mutual reliance that extends from the Gulf to Europe. This would provide a strong incentive for other countries to act to protect Israel’s interests, particularly during crises.
Seizing Opportunities in Energy Infrastructure
Investments in energy infrastructure could yield significant rewards. Deregulation of such projects would allow private entities to engage more easily in massive infrastructure developments, leading to a stable income flow. Unlike investments in the volatile AI sector, energy infrastructure provides a solid foundation for economic sustainability, as it is more challenging to replicate.
As energy policy experts often state, human prosperity closely correlates with the price and availability of reliable energy. To thrive and maintain its relevance in the global energy landscape, Israel must focus on becoming a leading energy provider instead of competing in AI, where it faces tough competition.
By strategically investing in a diverse energy portfolio—covering green, white, and brown energy—Israel can establish itself as a crucial component of the global energy network. As nations increasingly rely on Israeli energy, the country will not only enhance its security but also play a vital role in the world economy.
