The increase, from $10.1 billion in 2024, reflects growing interest in the region as an investment destination, with 25 percent of executives surveyed ranking the Middle East among the most important renewable energy markets globally.
The report, published by Ansarada in collaboration with Infralogic, highlights how demand for computing power linked to AI is becoming a major driver of renewable energy deployment.
Globally, investment in the sector reached $496 billion, with developers responding to rising electricity demand from data centres and high-performance computing.
The report estimates that global spending on AI infrastructure could exceed $500 billion by 2026, while electricity consumption by US data centres may reach 409 terawatt-hours by 2030.
About 37 percent of respondents globally, and 36 percent in Europe, the Middle East, and Africa, identified AI-related demand as a primary driver of new renewable capacity.
The Middle East’s investment model, backed by sovereign funding, is helping accelerate project development, according to the report. Unlike in Europe and North America, where grid constraints and permitting delays remain a challenge, projects in the region are often developed with generation and transmission infrastructure built in parallel.
The report highlighted the region’s integrated development approach, where renewable energy generation and transmission infrastructure are built in parallel rather than sequentially. This model, supported by sovereign capital and streamlined regulatory frameworks, is accelerating large-scale deployment.
“The Middle East demonstrates what can be achieved when projects are designed and delivered in an integrated manner,” said Justin Smith, Managing Director at Ansarada. “Co-developing renewable energy and transmission infrastructure represents a fundamental shift from the fragmented execution models common in Western markets.”
Rising AI demand is expected to further accelerate renewable energy deployment.
The report notes that global spending on AI infrastructure is projected to exceed $500 billion by 2026, while electricity consumption by US data centres could reach 409 terawatt-hours by 2030.
Around 37 percent of global respondents, and 36 percent in Europe, the Middle East, and Africa, identified AI-driven demand as a primary catalyst for new renewable capacity.
Egypt’s emergence as a regional AI hub is also increasing focus on developing energy infrastructure capable of supporting high-compute operations. As the country advances AI adoption, demand is growing for integrated renewable energy and storage solutions.
“AI-driven computing demand is becoming the single largest driver of new renewable energy development. However, the shift toward integrated, controllable solar-plus-storage systems significantly increases procurement complexity,” Smith added.
The report pointed to battery storage as a critical infrastructure component, with 34 percent of respondents in the Europe, Middle East, and Africa region expecting strong growth in utility-scale storage projects.
Macroeconomic uncertainty and high interest rates were cited as the top regional concerns, each flagged by 44 percent of respondents.
Despite widespread adoption of digital tools, the report identifies persistent structural gaps. While 91 percent of organizations use dedicated procurement software, most rely on three to four unconnected systems, and 55 percent still depend on email for sensitive bidder communications.
“Organizations believe they have digitized procurement, but in reality, they have created a fragmented ecosystem of tools,” Smith said, describing technological fragmentation as one of the report’s most notable findings.
Only 37 percent of respondents globally described their most recent procurement process as “highly efficient,” falling to just 8 percent in the Europe, Middle East, and Africa region, and 29 percent among government entities.
Although 95 percent of respondents consider their processes internally transparent, 43 percent acknowledged a lack of clarity for external stakeholders, potentially increasing legal risks.
Environmental, social, and governance (ESG) considerations remain central, with 80 percent of respondents in the region embedding ESG criteria into procurement processes, and 90 percent rating transparency and auditability as highly important.
“Without auditable ESG data, projects may be excluded from tenders or financing in many markets,” Smith noted.
“The Middle East is showcasing what is possible through holistic project design. Combined with robust digital procurement infrastructure, this integrated approach will ultimately determine project success or failure,” he concluded.
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