In recent years, Morocco has been shifting toward artificial intelligence (AI), with a particular focus on data centers. Two next-generation data centers, with colossal capacities and powered by renewable energy, are set to be built in Dakhla and Nouaceur. These ambitious initiatives, however, raise questions: what is the real purpose of a project that is so costly, energy-intensive, water-intensive, and creates few local jobs?
Designed for AI computations
While data centers used for data storage (like giant hard drives) already exist in Morocco, these two projects are dedicated to artificial intelligence (AI) and aim to reach a capacity of 500 megawatts (MW). This power is used to run servers, networks, and cooling systems. By way of comparison, only one data center has a higher capacity: Switch Inc.’s Citadel campus in Nevada, one of the largest data center sites in the world, with a capacity of 650 MW. The higher the capacity, the more powerful the data center.
These“new-generation”AI data centers are designed to perform complex calculations, as Salah Baïna, a digital transformation and artificial intelligence expert, explains to TelQuel. However, these calculations consume far more energy than those of traditional data centers—hence the need for 500 MW capacity, he notes.
To train and use an AI model, two computational stages are required, explains Baïna:“There is the training phase, which is long and energy-intensive, and allows for the creation of new models. Then comes the inference phase, where the model is used in real time.”
“The demand for AI in Morocco isn’t large enough to keep these data centers running around the clock. They will mainly serve to provide computing capacity for the international market”
Morocco’s geographic location is a decisive advantage for this second phase.“For inference, the issue of distance from the user is essential. In this regard, Morocco is well-positioned, connected to international internet cables along its Atlantic coastline,” adds the expert.
Such connectivity is more than necessary, as with a planned capacity of 500 MW, these data centers are intended for use by foreign countries, says Baïna.“The demand for AI in Morocco isn’t large enough to keep these data centers running around the clock. They will mainly serve to provide computing capacity for the international market,” he explains.
Digital sovereignty and regional hub
The stakes, however, go beyond simply providing computing capacity. For Morocco, these data centers are also a tool for digital sovereignty by hosting sensitive government data on national territory, training AI models in a controlled environment, and no longer relying on foreign servers for strategic computations.
On a larger scale, the Nouaceur and Dakhla projects aim for regional reach. Powered entirely by renewable energy and situated on the Atlantic coast, the future Igoudar digital complex is designed as a platform focused on Africa. “The Kingdom is asserting not only its digital sovereignty but also its ambition to become a regional digital hub serving Africa,” said Minister Amal El Fallah Seghrouchni in July 2025.
A significant energy cost…
But these centers still need to be kept running. For now, the biggest challenge facing these massive data centers remains energy supply. Behind these projects, a 100% Moroccan green energy supply is naturally expected, so as not to increase an already significant energy dependence on the international market. “When you talk about data centers, you must talk about renewable energy. Otherwise, it’s just energy debt,” says Baïna. Before becoming an AI hub, Morocco must first get its energy mix under control.
“If the energy powering these data centers isn’t carbon-free, they will become a major source of carbon emissions, which could delay Morocco’s energy transition goals.”
Rim Berahab, a senior economist at the Policy Center for the New South (PCNS), also fears that this particularly energy-intensive sector could jeopardize the kingdom’s energy transition goals. However, for the time being, Morocco’s energy mix remains dominated by fossil fuels, particularly coal with nearly 75% of Morocco’s electricity still coming from thermal sources.“If the energy powering these data centers isn’t decarbonized, they will become a major source of carbon emissions, which could delay Morocco’s energy transition goals,” she warns.
Especially since power supply for data centers must be continuous and stable, with few interruptions, the economist notes. She also highlights the cost of this reliability: renewable energy (wind or solar), which is intermittent by nature, cannot be supplied continuously without storage infrastructure.
Another challenge? The grid’s capacity to absorb this concentrated demand. “There is already demand from the industrial and residential sectors. Adding demand from data centers on top of that could put enormous pressure on the grid,” observes Rim Berahab.
… and water
Not to mention the cooling required by these massive facilities.“When data centers start operating, they generate heat, and water must be used to cool them,” notes Salah Baïna. A data center with a capacity of one megawatt consumes up to 25.5 million liters of water per year for cooling, according to the World Economic Forum. For a 500 MW data center, the water bill would therefore amount to 12.75 billion liters of water per year.
“We’ll have to come up with innovative solutions to waste as little water as possible, because we don’t have much,” warns the expert, noting that water is already a scarce resource in Morocco.
A Capital-Intensive Sector
Berahab points out another issue. She maintains that very few jobs are created by these data centers. According to Berahab, $1.2 billion invested in an AI data center creates, on average, only 800 to 1,500 direct permanent jobs.“The same billion in the manufacturing industry creates 8,000 jobs, and 12,000 in tourism. A data center is a capital machine, not a job machine,” she said. For Berahab, this figure is even overestimated: she mentions a few hundred jobs for construction, and between 50 and 100 permanent jobs.
“If these data centers are entirely controlled, operated, and supplied by foreign entities, the value created locally remains very limited”
Even so, these positions would need to be filled by Moroccan citizens.“Are these skills available domestically? Can we recruit these people locally? Is there a plan to transfer skills to Moroccan engineers?” asks Salah Baïna.
“If these data centers are entirely controlled, operated, and supplied by foreign entities, the value created locally remains very limited,” adds Rim Berahab, emphasizing the need for a transfer of expertise. A transfer of expertise that the Nexus AI Factory project claims to have planned.
Morocco may have an interest in developing data centers, but under certain conditions; otherwise, it risks failing to capture value. This issue depends on the projects, led by international consortia, whose details are not yet known.
Avoiding the trap of being merely a host
While the kingdom can congratulate itself on having attracted these major data center operators, it cannot be content with merely serving as a host;“otherwise, questions of profitability will arise,” explains Salah Baïna.“If we set up data centers that, ultimately, aren’t really used to serve local, national, or African needs, Morocco will just be a host. All the usage, all the added value—if it isn’t captured—is of very little interest,” he warns.
Baïna envisions a phased approach. First step: a transfer of expertise is established, and Morocco succeeds in reducing its energy dependence.“Then, if we manage to turn these data centers into true tools of national and African sovereignty, that will be even better. The Holy Grail would be to become a player in the global AI chain,” he continues. Ireland has become the European hub for data centers. The kingdom could be its Mediterranean counterpart, envisions Baïna.
Casablanca Region and Southern Provinces
For now, Morocco’s ambitions are reflected in these two projects in Dakhla and Nouaceur. Named Nexus AI Factory, this high-performance computing (HPC) infrastructure has a budget of 12 billion dirhams. With an initial capacity of 36 MW expected by the end of 2027, the long-term goal is to reach 500 MW.
In Dakhla, expectations are just as high. The data center currently under development also aims for a capacity of 500 MW. A partnership agreement has thus been signed for the data center complex, named Igoudar Digital. The project involves the Ministry of Energy Transition and Sustainable Development, the provincial government, the Dakhla-Oued Eddahab Regional Council, the Mohammed VI Investment Fund, and the CDG Group.
Before these projects take shape and Morocco establishes itself as a true global AI hub, the kingdom will first have to overcome major challenges: energy, water, skills, and sovereignty.
Written in French by Salomé Krumenacher; edited in English by AngloMedia Group.
