Morocco links green hydrogen drive to AI strategy

Monday 02 March 2026 - 15:55

By: Dakir Madiha

Morocco links green hydrogen drive to AI strategy

Morocco is accelerating an industrial shift in its southern regions by aligning large-scale green hydrogen projects with its national digital and artificial intelligence agenda. On 5 February 2026 in Rabat, Prime Minister Aziz Akhannouch signed preliminary land reservation agreements with national and international investors, paving the way for five major projects under the government’s “Morocco Offer” framework.

Launched in 2025, the programme aims to attract integrated investments covering renewable electricity generation, hydrogen production and the transformation of hydrogen into export products such as green ammonia. According to official data and industry estimates, the selected projects represent a planned investment of about 319 billion dirhams, equivalent to roughly 32 to 35 billion dollars. This places green hydrogen among the largest investment pipelines in Morocco’s recent history.

Each project may access up to 30,000 hectares of public land. Authorities have identified nearly one million hectares nationwide for hydrogen development, with an initial 300,000 hectares opened to investors in the southern provinces. The “Morocco Offer” sets out governance rules, phased development targets and land allocation mechanisms intended to combine state oversight with long-term investor security.

The projects are concentrated in Morocco’s three southern regions, where solar radiation and wind conditions rank among the most favourable in North Africa and the Mediterranean basin. Research on hydrogen production costs indicates that Morocco could achieve globally competitive prices over time due to low-cost renewable power and large land availability. Beyond hydrogen, policymakers expect downstream industries to develop, including green ammonia, synthetic fuels for shipping and aviation, and potentially green steel.

Officials present the hydrogen strategy as a pillar of energy sovereignty and regional development rather than solely an export initiative. The Moroccan Agency for Sustainable Energy and the head of government’s office have described the project selection process as competitive and data-driven, favouring proposals with solid technical designs, credible financing and measurable local impact. The new agreements build on earlier deals signed in 2024 with TotalEnergies, OCP Group and Engie to advance renewable and hydrogen-linked industrial projects.

Digital infrastructure in the south

At the same time, Morocco is expanding its digital transformation strategy. In January 2026, Minister for Digital Transition Amal El Fallah Seghrouchni said artificial intelligence services could add around 100 billion dirhams, or 10 billion dollars, to gross domestic product by 2030. With national GDP estimated near 170 billion dollars, the projected AI contribution represents about six percent of current output.

The 2024 to 2026 digital plan carries a budget of 11 billion dirhams. It includes sovereign data centres, cloud computing infrastructure, fibre-optic expansion and workforce training to support AI development. Authorities also plan a 500 megawatt data centre in Dakhla powered by renewable energy, designed to strengthen domestic data processing capacity and digital sovereignty in the southern regions.

During a meeting with the Islamic World Educational, Scientific and Cultural Organization in late 2025, Seghrouchni described the digital economy as a lever for sustainable growth and public sector modernisation. Policy analysis from Morocco’s Economic, Social and Environmental Council has similarly identified artificial intelligence as a potential engine for a new economic ecosystem, while warning of regional disparities in skills and infrastructure.

The overlap between hydrogen and digital policy is most visible in the southern provinces. Large hydrogen installations require advanced digital systems to manage intermittent renewable generation, optimise logistics chains and monitor safety in desert environments.

From a macroeconomic standpoint, the combined target of a 100 billion dirham AI contribution and a 319 billion dirham hydrogen investment plan signals the central role of green industry and digital technology in Morocco’s development model. International evidence shows that renewable infrastructure projects generate substantial construction employment, though long-term job creation depends on local manufacturing and supply chain integration. Moroccan authorities must therefore ensure that these strategies deliver durable jobs while addressing environmental pressures such as water use for electrolysis and broader social concerns linked to large-scale projects in the southern territories.

The “Morocco Offer” remains at an early implementation stage. With preliminary land agreements signed, investors must now secure financing, conclude export contracts and build supporting infrastructure. The speed of execution will determine whether Morocco’s southern regions emerge as a clean energy and digital hub or remain primarily export platforms. For now, Rabat is betting that synchronising green hydrogen expansion with its AI ambitions will strengthen the country’s position in the global energy transition.