Technology tends to grow quietly in the background until, one day, its impact becomes impossible to ignore. That is exactly what is happening with artificial intelligence and its effect on power needs across the region. As AI adoption grows, the Middle East is moving steadily toward smarter energy systems, and it is genuinely encouraging to see this shift being taken seriously rather than left for later.
This insight comes from Mark Ring, Group Director of Middle East Energy, who spoke to the Emirates News Agency (WAM) during the 50th edition of the Middle East Energy exhibition. He explained that the growth of AI and data centres is reshaping power demand and increasing the need for flexible generation, storage capacity, and stronger power infrastructure.
Why AI Is Pushing the Need for Smarter Energy Systems
The link between AI and energy might not be obvious at first, but it makes sense once explained simply. AI tools and data centers need constant, reliable power to run, and as more of them are built, power demand naturally rises. According to Ring, this shift is one of the clearest reasons the region now needs smarter energy systems more than ever.
Some key points shared during the event include:
- AI and data centers are becoming significant new sources of electricity demand
- The UAE continues to play an active role in global energy through innovation, sustainability, and energy security
- More than 30,000 energy professionals attended this year’s three-day exhibition
- The event will move to the Dubai Exhibition Centre at Expo City Dubai in 2027
The Numbers Behind the Shift
Citing forecasts from Rystad, the exhibition’s Intelligence Partner, Ring shared a genuinely eye-opening figure: electricity demand across the Middle East and North Africa is expected to rise from 1,671 terawatt-hours in 2025 to 3,670 terawatt-hours by 2050. That is more than double in just 25 years.
A few sectors are expected to drive this rise:
- Data centres supporting AI and digital growth
- Hydrogen production
- Industrial activity
- Transport
This kind of growth calls for careful planning, and it is heartening to see the region preparing early rather than reacting later.
Building the Right Infrastructure
The exhibition highlighted a growing focus on the tools needed to support this transition, including renewable energy, efficiency improvements, backup power, and energy storage. Equipment such as switchgear, transformers, and transmission systems is also becoming more important as demand continues to climb.
One encouraging example shared during the event was PVFarm’s Innovation Award, given for software that helps plan solar-plus-storage projects before construction even begins. Thoughtful planning like this can make future smarter energy systems far more effective from day one.
The event’s dedicated Powering AI track focused specifically on flexible generation, energy storage, and critical power infrastructure, showing how closely AI growth and energy planning are now connected.
From Planning to Real Action
Ring noted something particularly reassuring: the region’s energy transition is moving from setting targets to actually implementing them. This was reflected in a Global Energy & Efficiency roundtable involving 30 global companies, along with plans for a memorandum of understanding to support real-world implementation.
He also pointed to three key trends shaping the future of smarter energy systems:
- Storage upgrades
- Grid modernisation
- Digitalisation
The UAE’s own plans for large-scale solar projects paired with battery storage were highlighted as a strong example of this approach, helping expand renewable energy while keeping the grid stable.
Why This Matters for Everyone
Even if energy planning feels like a background topic, its effects reach everyone, from businesses relying on stable power to households simply switching on the lights. Building smarter energy systems now means the region can support AI growth and everyday needs at the same time, without one coming at the expense of the other.
Conclusion
The steady shift toward smarter energy systems is a thoughtful response to a real and growing need. As AI and its supporting infrastructure continue to expand, the Middle East’s early focus on storage, infrastructure, and digital planning shows a region preparing responsibly for the future.
If your organisation wants guidance on adopting AI in a way that supports long-term, sustainable growth, Horizontal8 is here to help. Reach out to Horizontal8 today, and let’s plan your next step together.
Frequently Asked Questions
Why is AI increasing the need for smarter energy systems?Â
AI tools and data centres require large, constant amounts of power, which is driving higher electricity demand across the region.
How much is electricity demand expected to grow in the Middle East?Â
It is projected to rise from 1,671 terawatt-hours in 2025 to 3,670 terawatt-hours by 2050, according to Rystad forecasts.
What role does energy storage play in this shift?Â
Energy storage helps balance supply and demand, especially when paired with renewable sources like solar power.
What is the Powering AI track at Middle East Energy?Â
It is a dedicated section of the exhibition focused on flexible power generation, energy storage, and critical infrastructure needed to support AI growth.
Where will Middle East Energy be held after 2026?Â
The exhibition will move to the Dubai Exhibition Centre at Expo City Dubai starting in 2027.