Davos 2026: Addressing the Massive Energy Demands of the AI Revolution

The annual meeting of the World Economic Forum (WEF) took place in Davos from January 19 to 23, 2026. During this high-level gathering, energy security emerged as a primary concern for global leaders, driven by an unprecedented surge in worldwide power requirements that has fundamentally shifted the geopolitical landscape.

This spike in demand is largely attributed to the explosive growth of artificial intelligence (AI) and the subsequent expansion of data centers. These facilities are placing an immense strain on existing power infrastructures, necessitating a radical rethink of how we generate and distribute electricity to sustain technological progress.

Majid Jafar, the CEO of Crescent Petroleum and Managing Director of Dana Gas, provided a sobering look at the financial requirements of this transition. He stated that global investments must reach approximately $4 trillion annually to keep pace with the rising demand for power and infrastructure.

These massive capital injections need to be strategically funneled into three primary sectors to ensure stability:

• The development of diverse and reliable energy sources;
• The comprehensive modernization of aging electrical grids;
• The construction and optimization of state-of-the-art data centers.

Industry experts at the forum emphasized that comprehensive energy strategies are vital to support the projected consumption of data centers. Some estimates suggest that these facilities could consume more than 1,000 terawatt-hours (TWh) by the year 2030, requiring a pragmatic approach to infrastructure planning and resource allocation.

Data from leading analytical bodies underscores the urgency of the situation. The International Energy Agency (IEA) expects data center electricity usage to hit 1,050 TWh by 2026, which would make them the fifth-largest energy consumer globally. Similarly, Energy Intelligence predicts a rise to 1,000 TWh by 2026, more than doubling the 460 TWh recorded in 2022.

Highlighting regional opportunities, Majid Jafar pointed to the Middle East, and the United Arab Emirates (UAE) in particular, as a pivotal hub for energy investment. The region is poised to play a central role in scaling the necessary infrastructure to meet global needs due to its strategic resources and investment climate.

Regional natural gas production is anticipated to increase by roughly 30% by the end of the current decade. However, achieving this growth will require approximately $200 billion in supporting investments to ensure the supply chain remains robust and capable of meeting international demand.

Jafar noted that future economic success will be defined by nations that can successfully integrate reliable energy supplies with rapid, large-scale grid upgrades. This synergy is essential for maintaining a competitive edge in an AI-driven global economy where power availability dictates growth.

During the forum, a "Leaders' Energy Breakfast" was co-hosted by Majid Jafar and Musabbeh Al Kaabi, the Executive Director of Upstream at ADNOC. The event focused on the "New Energy Agenda: Access, Resilience, and AI," exploring the parallel evolution of technology and power systems.

A key takeaway from the discussions was that data centers now represent the new "industrial load" of the modern economy. Consequently, upgrading power grids and ensuring a consistent, resilient electricity supply have become critical priorities for policymakers and private sector leaders alike.

Meeting the 24/7 operational needs of data centers requires significant dispatchable power, which intermittent renewable sources cannot provide alone. In response, countries like Sweden are looking toward a nuclear renaissance to provide clean, reliable baseload power that can support high-tech industries.

Furthermore, the International Gas Union (IGU) highlighted that natural gas remains an ideal solution for providing flexible, dispatchable capacity. This allows the global community to meet rising energy demands while simultaneously progressing toward long-term decarbonization targets through a balanced energy mix.