Oil and Gas Set to Drive 500 Percent Surge in Data Center Power Demand
Hydrocarbons are expected to supply nearly three-quarters of the massive increase in electricity demand projected from data centers, as artificial intelligence adoption and global economic growth continue to accelerate energy consumption worldwide.
According to Sultan Al Jaber, Chief Executive of the Abu Dhabi National Oil Company, power demand from data centers is forecast to rise by as much as 500 percent by 2040. Al Jaber, who also serves as the United Arab Emirates Minister of Industry and Advanced Technology, made the remarks on Tuesday at the Abu Dhabi Sustainability Week.
He explained that the rapid expansion of artificial intelligence technologies, alongside the large-scale construction of data centers required to support them, is driving unprecedented growth in global energy demand. As a result, oil and gas are expected to remain central to meeting this demand for decades to come.
Al Jaber noted that more than 70 percent of the additional energy required will still come from hydrocarbons. Rather than seeing this reliance as a limitation, he described it as an opportunity to rethink how sustainable progress is achieved.
He emphasized that sustainability should not be viewed as slowing economic growth, but as improving the systems that power it. According to him, designing a better and more efficient energy engine is essential to supporting future development.
The ADNOC chief also highlighted the scale of investment now required in the global energy system. Speaking previously at the ADIPEC energy conference in Abu Dhabi in November, Al Jaber revealed that advances in artificial intelligence and the rapid build-out of data centers have pushed global energy investment needs to about four trillion dollars annually.
For years, major oil-producing nations have warned that underinvestment in energy supply could create future shortages. Al Jaber said the rise of the AI-driven economy has further increased the urgency for investment, not only in energy production but also in electricity grids and infrastructure.
He stressed that modern economies cannot rely on outdated power systems, pointing out that tomorrow’s digital economy requires a modernized and resilient grid. According to him, the world now needs around four trillion dollars each year in capital investment across grids, data centers, and all forms of energy supply.
Despite near-term challenges such as oil market oversupply, Al Jaber maintained that the long-term outlook remains clear. Demand for every form of energy is expected to grow across all markets.
He concluded by urging policymakers and industry leaders to respond to these realities based on data rather than emotion, noting that informed, long-term planning is critical to meeting the world’s rising energy needs.
Source: Oilprice.com
