Middle East Power Demand Set to More Than Double by 2050 Amid AI and Data Centre Boom
Electricity demand across the Middle East and North Africa (MENA) is projected to more than double by 2050, driven by the rapid expansion of artificial intelligence (AI) data centres, industrial growth, and widespread electrification.
According to a recent energy outlook by Rystad Energy, regional electricity consumption is forecast to surge from 1,671 terawatt-hours (TWh) in 2025 to 3,670 TWh by mid-century.
This unprecedented trajectory highlights how the region’s utilities and power grids are scaling up to support advanced digital infrastructure and economic diversification beyond oil and gas.
To meet this soaring consumption, installed power-generation capacity across the region is expected to quadruple, expanding from 580 gigawatts (GW) in 2025 to 2,328 GW by 2050.
While traditional residential and industrial consumers remain key, emerging sectors such as data centres, green hydrogen production, commercial services, and electrified transport are fundamentally reshaping regional energy baseloads.
In the UAE, electricity’s share of final energy demand is projected to climb dramatically from 17% in 2025 to 42% by 2050, anchored by heavy investments in solar energy, nuclear supply, and battery storage solutions.
Industry experts emphasize that transitioning toward these high-tech energy ecosystems requires massive capital injection into grid modernization, smart management, and advanced project execution.
As AI and digitalization demand higher grid resilience, regional utilities are accelerating renewable deployment—such as solar targets scaling to 50% of total generation in the UAE—while balancing supply security with gas and nuclear components.
Consequently, the Middle East and Africa are positioned to become the world’s third-largest energy-consuming region, ushering in a transformative era for sustainable power infrastructure.
