Global energy demand is rising faster than its historical average. Electricity consumption is growing rapidly, reflecting a profound shift in how the world operates: more cooling, more industrial output, greater electrification and an explosion in digital infrastructure, from data centres to artificial intelligence.
Yet while demand surges, access to energy remains deeply unequal. Billions of people still lack reliable electricity or clean cooking solutions, while others consume far more than they need. At this moment, the world is not simply undergoing an energy transition – it is experiencing an energy expansion. How we manage it will determine whether the AI revolution broadens human opportunity or deepens global inequality.
AI: The New Energy Frontier
Artificial intelligence is often viewed as a purely digital phenomenon. In reality, it rests on an enormous physical foundation. Every AI-generated image, every large language model query, and every automated system depend on a vast network of power-hungry chips, cooling systems, data centres, and the electricity grids that sustain them.
Estimates suggest that global data-centre electricity consumption could nearly double by 2030 under high-growth AI scenarios. Some analysts warn that the surge in AI demand could strain power systems, slow climate progress and compete with the energy needs of developing economies.
Even seemingly small digital actions have a physical footprint. A ChatGPT query can require several times more energy than a typical search engine query. Generating a one-minute AI video may consume roughly the same electricity as a Western household uses in an hour. Training large AI models can demand as much power as more than 100 homes use in a year.
Multiply this by billions of users and millions of servers, and the scale becomes clear. Energy supply – not just emissions – is becoming central to the AI debate.
In this new landscape, chips are beginning to resemble the oil of the digital age, data centres the refineries, and reliable electricity the pipelines that make the entire system function.
Why the Global South Must Be Part of the Story
Most of the world’s future population growth, urban expansion and digital adoption will occur in emerging economies. Unsurprisingly, their demand for energy is rising rapidly.
Yet global discussions too often treat energy infrastructure and digital transformation as separate issues. AI receives the attention; power supply does not. This disconnect is increasingly untenable.
A fair and sustainable global energy future requires that the countries powering the next wave of digital growth have access to reliable and affordable energy – not only for households, but also for industry, infrastructure and data centres.
The Global South must not be forced to decide between energy scarcity and digital exclusion.
A Pragmatic Energy Strategy
Meeting the energy demands of a digital world will require a pragmatic, “all-of-the-above” approach built on three priorities.
Security. Energy systems must be stable and scalable. This means expanding grids, improving reliability and maintaining a diverse mix of supply – from natural gas and other hydrocarbons to nuclear and renewable energy.
Affordability. Energy must remain accessible for households, industry and digital infrastructure alike. Chronic underinvestment risks higher prices, energy poverty and economic instability.
Sustainability and equity. Renewable energy must expand rapidly, but pragmatically. Growth in wind and solar must be paired with reliable backup capacity, while investment in energy access for poorer regions must accelerate.
Balancing these priorities offers the only realistic pathway to reconciling economic growth, technological progress and climate responsibility.
The Role of Emerging Energy Hubs
Regions with abundant energy resources, capital and strategic ambition – including parts of the Gulf – are positioned to play a crucial role.
They can provide stable and affordable energy to support the expansion of global AI infrastructure, mobilise capital for both fossil and clean energy investments, and serve as bridges between mature and emerging markets.
By exporting energy, financing infrastructure and enabling technological growth, these regions could help power the next phase of the global digital economy.
Governance, Cooperation and Davos 2026
As global leaders gathered at the World Economic Forum in 2026, the intersection of energy and AI sat firmly at the centre of the agenda. The themes of innovation, economic growth and sustainability are now inseparable from the question of energy security.
Meeting this challenge will require stronger international cooperation: cross-border investment, shared standards for data-centre development, incentives for efficient energy use and greater support for energy infrastructure in emerging economies.
Innovation also has a role to play. AI itself can help optimise energy grids, forecast demand and integrate intermittent renewable generation. But these technologies can only succeed if the underlying energy system is reliable.
In other words, the development of AI and the transformation of energy systems must move forward together.
The Choice Ahead
The world stands at a crossroads.
One path leads to widespread prosperity – billions gaining access to power, economies becoming digitalised, and AI unlocking new human potential.
The other risks are energy shortages, widening inequality and deeper divides between technology-rich and energy-poor regions.
The task for the coming decade is therefore not simply to accelerate clean-energy deployment, but to rethink energy strategy altogether. Energy must be recognised not just as a climate issue, but as the foundation of digital infrastructure, economic opportunity and global stability.
Because in the age of artificial intelligence, energy is no longer just a utility. It is the backbone of modern prosperity and innovation.