Davos 2026: AI growth could trigger $4 trillion global energy demand, leaders warn

Rapid growth in artificial intelligence and data centres is intensifying pressure on global energy systems and elevating energy security as a central issue for economic competitiveness, experts told delegates at the World Economic Forum in Davos.

Industry leaders said meeting future demand could require around $4 trillion in annual investment across grids, data centres and energy supply.

Speaking on a panel titled Who Is Winning on Energy Security?, Majid Jafar, Chief Executive Officer of Crescent Petroleum and Board Managing Director of Dana Gas, said the scale and pace of demand growth were reshaping global energy systems and creating new strategic opportunities for energy-producing regions.

Jafar highlighted the expanding role of the Middle East, and particularly the United Arab Emirates (UAE), in supporting global energy resilience as electricity demand accelerates due to artificial intelligence, electrification and digital infrastructure.

He noted that electricity consumption from data centres alone is expected to exceed 1,000 terawatt-hours by 2030, placing unprecedented pressure on existing energy systems in major economies.

Rising energy demand sparks investment

The region’s natural gas sector is expected to play a key role in meeting this demand. Jafar said natural gas production in the Middle East is projected to increase by around 30 per cent by the end of the decade, requiring an estimated $200 billion in investment. He added that the UAE’s ability to scale energy investment, modernise infrastructure and mobilise capital positions it as a key contributor to global energy security.

“Energy security today depends on global systems that can absorb shocks, scale with demand, and remain affordable over time,” Jafar said. “The next phase of economic and technological leadership will be shaped by countries that can combine reliable energy supply with fast, large-scale grid modernisation.

“With farsighted leadership, agile policymaking, and capital and energy availability, the UAE is already playing a leading role in global energy resilience and is well positioned to support the next wave of AI-driven energy demand.”

WEF 2026 focuses on energy security

The panel examined how different regions are responding to mounting pressure on energy infrastructure and investment. Jafar was joined by Mike Henry, Chief Executive Officer of BHP; Fatih Birol, Executive Director of the International Energy Agency; Andrés Gluski, Chief Executive Officer of AES; and Meghan O’Sullivan, Director of the Belfer Center for Science and International Affairs at Harvard University. The discussion was moderated by Sir Robin Niblett, Distinguished Fellow at Chatham House.

Earlier in the day, Jafar co-hosted the Davos Energy Breakfast with Musabbeh Al Kaabi, ADNOC Upstream Chief Executive Officer. The private roundtable, titled The New Energy Agenda: Access, Resilience and AI, focused on how energy systems, including those in the Middle East, must evolve to meet rising global demand while supporting economic development and technological advancement.

The World Economic Forum runs from 19 to 23 January 2026 in Davos, Switzerland, bringing together leaders from government, business, civil society and academia under the theme A Spirit of Dialogue.