Bahrain’s strategic AI ambitions driving force behind US nuclear deal

The recent nuclear energy agreement between Bahrain and the United States is being closely tied to the global artificial intelligence (AI) boom by experts in the field. On July 16, US Secretary of State Marco Rubio and Bahrain’s Foreign Minister Dr. Abdullatif Al Zayani signed a civil nuclear cooperation agreement, which prominently features a commitment to the development of small modular reactors (SMRs).

While the deal has been widely viewed as a move toward energy diversification, experts interviewed by The National publication highlighted that the agreement's true significance lies in its role in supporting AI infrastructure. With the rapid expansion of AI technology placing increasing demands on national energy grids, SMRs are emerging as a practical solution due to their compact size, flexibility, and quicker deployment timelines compared to traditional nuclear reactors.

According to Mohammed Soliman, a Middle East technology expert and director of the Strategic Technologies Program at the Middle East Institute, this agreement could help position Bahrain as a rising AI power in the Gulf, leveraging its early legacy in technology adoption and its growing alignment with advanced energy solutions. He described the shift as a strategic pivot from an oil-based economy to a digitally driven future, enabled by sovereign AI systems and AI-powered digital exports.

Although SMR technology is still under regulatory review in many parts of the world, Soliman said the landscape is changing quickly. Advances in reactor design and growing involvement from private-sector players are pushing SMRs closer to large-scale deployment. He believes that the Middle East—due to its centralised governance and long-term infrastructure planning—is uniquely suited to adopt SMRs at scale.

The increasing power demands of AI technologies are a central concern behind the renewed focus on nuclear energy. AI queries, such as those to ChatGPT, are estimated to use roughly 10 times more energy than traditional web searches. As this demand accelerates, countries around the world—including the United States—are turning back to nuclear power as a viable, low-emission energy source to sustain AI growth.

This renewed interest is mirrored in the Middle East, where countries are positioning themselves as future leaders in AI. The US–Bahrain agreement is part of a broader international effort to promote the responsible development of SMRs through programs like FIRST (Foundational Infrastructure for the Responsible Use of Small Modular Reactor Technology).

Ann Ganzer, US Deputy Assistant Secretary in the Bureau of Arms Control and Nonproliferation, highlighted the strategic importance of the agreement, calling it a vital step in expanding civil nuclear cooperation between the two nations. Foreign Minister Al Zayani echoed her remarks, expressing Bahrain’s interest in learning from the US’s technological expertise and underlining the role of nuclear collaboration in achieving mutual prosperity.

By Vugar Khalilov