Investment in renewable energy projects in the Middle East has risen by 28 per cent year on year, according to a new report from Ansarada in partnership with Infralogic.
The 2026 Renewable Energy Infrastructure Outlook Report shows global renewable energy investment reaching $496 billion, driven in part by rising AI compute demand.
In the Middle East, investment reached $12.9 billion in 2025, up from $10.1 billion in 2024.
The region is increasingly seen as a strategic growth market, with 25 per cent of surveyed executives identifying it as a top destination for renewable energy investment.
The report highlights the region’s sovereign backed model, which enables “rapid supply chain mobilisation and bankable pipelines”, helping it avoid permitting delays and grid bottlenecks seen in Western markets.
It also notes an integrated delivery approach where renewables and transmission infrastructure are built in parallel.
“The Middle East demonstrates what’s possible when projects are designed and delivered holistically,” said Justin Smith, Managing Director at Ansarada.
“Building renewables and transmission together represents a fundamentally different approach than the fragmented delivery model common in Western markets.”
AI driven demand is accelerating growth, with over $500 billion expected in AI infrastructure capex by 2026.
US data centre consumption is forecast to reach 409 TWh by 2030.
The report identifies this as a major driver, with 37 per cent of respondents globally and 36 per cent in EMEA citing it.
The UAE’s AI ambitions are also boosting demand for integrated renewable and storage systems.
“AI compute demand is the single biggest driver of new renewables development,” Smith said.
“But the shift from distributed solar to integrated, dispatchable systems, the ‘solar plus storage’ configurations needed to manage grid stability, dramatically increases procurement complexity.”
Battery storage is becoming essential infrastructure, with 34 per cent of EMEA respondents expecting strong growth.
Despite high digital adoption, 55 per cent of firms still use email for bidder communication, and only 37 per cent describe procurement as highly efficient.
Fragmented systems remain a key challenge.
