AI growth is accelerating the Middle East’s need for smarter energy systems

The growth of artificial intelligence (AI) and data centers is reshaping electricity demand and increasing the need for flexible generation, energy storage, critical power infrastructure and smart energy management, according to Mark Ring, Group Director of Middle East Energy.

Speaking to the Emirates News Agency (WAM) during the 50th edition of Middle East Energy, Ring said the UAE continues to play a role in the global energy sector through its focus on innovation, sustainability and energy security.

He said the exhibition has evolved into a platform connecting industry leaders, policymakers, investors and decision-makers, with more than 30,000 energy professionals attending this year’s three-day event.

Ring also announced that Middle East Energy will move to the Dubai Exhibition Center at Expo City Dubai in 2027, a move he said would support the event as the energy sector continues to evolve.

This year’s exhibition reflected growing demand for renewable energy, energy efficiency, storage, electricity transmission, backup power and smart energy management. Equipment, including switchgear, transformers, and transmission systems, is becoming increasingly important as electricity demand continues to rise.

Ring highlighted PVFarm’s Innovation Award for its pre-construction intelligence software for solar-plus-storage projects as an example of the growing focus on planning and efficiency in energy investment.

AI and data centers are also emerging as significant sources of new electricity demand. Citing forecasts from Rystad, Middle East Energy’s Intelligence Partner, Ring said electricity demand across the Middle East and North Africa is expected to increase from 1,671 terawatt-hours in 2025 to 3,670 terawatt-hours by 2050.

Data centers, hydrogen, industry, and transport are expected to contribute to this increase.

The shift was reflected in the exhibition’s Powering AI track and its focus on flexible generation, energy storage and critical power infrastructure.

Ring said the region’s energy transition is increasingly shifting from targets to implementation, citing a Global Energy & Efficiency roundtable involving 30 global companies and plans for a memorandum of understanding to support implementation.

He identified energy storage, grid modernization, and digitalization as key trends, highlighting the UAE’s plans for large-scale solar projects paired with battery storage to expand renewable generation while maintaining grid stability.