AI, data centres and a four-times larger power system
According to Rystad Energy‘s regional outlook, electricity demand across the Middle East and North Africa is forecast to rise from 1,671 terawatt-hours in 2025 to 3,670 terawatt-hours by 2050. That is more than double in 25 years. The firm expects installed power-generation capacity to grow even faster, quadrupling from 580 gigawatts to 2,328 gigawatts over the same period, as governments and utilities add large volumes of new plant to meet the shift towards electrified economies and digital infrastructure.
Mark Ring, Group Director of Middle East Energy, told Emirates News Agency that artificial intelligence and data centres have emerged as major new sources of electricity demand. They are pushing the sector towards flexible generation, storage, critical power and smart energy management. Rystad’s analysis, presented through Middle East Energy’s Intelligence Partner role, highlights data centres, hydrogen production, industrial activity and transport as key contributors to this growth in MENA power demand.
Meanwhile, wider global data underpin the scale of the AI load. The International Energy Agency reports that global electricity use from data centres reached around 448 terawatt-hours in 2025, with demand expected to almost double by 2030. Power use at AI-focused facilities is forecast to triple over the same period. OPEC’s World Oil Outlook 2026 projects electricity consumption associated with data centres and AI to rise from 602 terawatt-hours in 2025 to 4,208 terawatt-hours by 2050 — an almost sevenfold increase. These numbers give investors a clear signal: long-duration, high-availability power contracts tied to AI workloads will become a core asset class.
The 50th edition of Middle East Energy in Dubai underscores this shift. According to the event’s organisers, the exhibition attracted more than 30,000 energy professionals over three days, with 1,528 global energy companies confirmed to exhibit. Five conference stages and around 250 speakers supported the programme. The show’s Powering AI track placed AI and hyperscale data centres at the centre of discussions about future capacity and grid resilience. As Ring put it, the industry is facing a defining moment as AI demand reshapes investment priorities across the value chain.
What does the Middle East Energy pivot mean for investors?
This year’s Middle East Energy edition highlighted growing demand for renewable energy, energy efficiency, storage, electricity transmission equipment and reliable backup power. Smart energy management systems that can handle more volatile load patterns also drew significant interest. Products such as switchgear, transformers and transmission equipment attracted strong attention as electricity consumption rises and grids expand and modernise. Ring stressed that the region’s energy transition is moving from ambition to implementation, pointing to a Global Energy and Efficiency roundtable involving 30 global companies and planned memoranda of understanding aimed at accelerating delivery.
The exhibition also showcased innovation in project development. Ring cited PVFarm’s Innovation Award for its pre-construction intelligence software for solar-plus-storage projects. The tool helps project sponsors optimise sizing and economics before committing capital. BloombergNEF data show that the region installed a record 16 gigawatts of solar and wind capacity in 2025. Additions are expected to rise a further 37% to 18 gigawatts in 2026, indicating that pipelines are deep and still growing. Rystad Energy estimates that MENA is building towards a power system four times larger than today’s, with clean energy carrying nearly all of that growth. This trajectory mirrors the broader UAE clean energy push targeting 35% renewables by 2031.
From 2027, Middle East Energy will relocate to the Dubai Exhibition Centre at Expo City Dubai. The organisers say this move will root the show more firmly in the emirate’s emerging infrastructure hub and the region’s evolving power ecosystem. The shift positions the exhibition closer to large-scale projects, including the UAE’s planned expansion of utility-scale solar paired with battery storage, which Ring highlighted as a key trend for maintaining grid stability as renewables gain share.
For institutional investors and regional policymakers, the message is clear: MENA power demand is on a structural upward path, and AI-led data centre growth is compressing timelines. The most compelling opportunities will sit where generation, storage, grid modernisation and digital control converge. Over the next five years, investors should track how quickly announced AI and data centre projects translate into firm power purchase agreements across the Gulf, and which markets move fastest to monetise flexibility rather than just capacity.
Quick answers
According to Rystad Energy, electricity demand across the Middle East and North Africa is forecast to rise from 1,671 terawatt-hours in 2025 to 3,670 terawatt-hours by 2050, with installed generation capacity quadrupling from 580 gigawatts to 2,328 gigawatts.
The International Energy Agency reports global data centre electricity use reached around 448 terawatt-hours in 2025, with demand expected to nearly double by 2030; OPEC projects AI and data centre consumption globally to reach 4,208 terawatt-hours by 2050.
The 50th edition of Middle East Energy attracted more than 30,000 energy professionals over three days, with 1,528 global energy companies exhibiting across five conference stages supported by around 250 speakers.
