Electrification is reshaping the global energy landscape, emerging as a strategic pathway to greater energy security, industrial competitiveness and economic growth. Global efforts are targeting an increase in the share of final energy consumption met by electricity from just over 20% today to 35% by 2035, while emerging economies are expected to account for nearly 80% of additional electricity demand through 2030. Rising demand across industry, transport, buildings, AI and data centres is strengthening the investment case for cleaner, more efficient and resilient power systems. The World Economic Forum’s Energy Transition Index 2026 found that only 24% of countries improved simultaneously across energy security, sustainability and affordability. Harnessing electrification as a competitive advantage will require accelerated investment in renewables, storage, grids and firm dispatchable generation, supported by resilient supply chains and stronger cross-sector collaboration.

Infrastructure is no longer simply an enabler of growth; it is a strategic asset for energy security, industrial competitiveness and national resilience. As populations expand, economies electrify and advanced industries increase demand, the challenge is no longer simply adding capacity but ensuring that critical systems can adapt to rapid change, withstand disruption and maintain essential services. Climate extremes, cyber threats, geopolitical instability, ageing assets and supply-chain vulnerabilities are reshaping how infrastructure must be planned, built and operated. Embedding resilience at the planning stage is more cost-effective than retrofitting systems or recovering from failures. Building future-ready infrastructure will require stronger and more interconnected grids, resilient water systems, diversified supply chains, digital intelligence and strategic redundancy, ensuring critical systems can anticipate disruption, withstand shocks and recover rapidly while supporting long-term economic growth.

As variable renewables scale and demand from AI and electrification surges, firm, dispatchable capacity has moved to the centre of system planning. Natural gas and nuclear are increasingly recognised as essential complements to renewables, providing reliable baseload and flexible capacity to maintain system stability. Heavy-duty gas turbines are now largely sold out through the end of the decade, while nuclear is experiencing renewed momentum through life extensions, small modular reactors (SMRs) and direct procurement by technology companies to power AI. For the Gulf, with operating nuclear capacity and abundant gas resources, this presents a significant opportunity to strengthen energy security while supporting competitive, lower-carbon electricity systems.

Innovation is redefining how utilities plan, operate and optimise increasingly complex energy systems. As variable renewables, distributed energy resources and rising demand reshape power systems, flexibility and intelligence are becoming critical to maintaining reliability, affordability and competitiveness. AI, advanced analytics, digital twins and real-time sensing are enabling utilities to optimise assets, anticipate system needs and improve operational performance, while innovations in energy storage, smart grid technologies and demand flexibility are creating new ways to balance supply and demand. Customers are also becoming active participants through distributed generation, flexible demand, electric vehicles, smart tariffs and virtual power plants. Realising this potential will require utilities to accelerate the deployment of innovation, supported by interoperable digital infrastructure, robust cybersecurity, skilled workforces and market frameworks that reward flexibility and enable new technologies to scale.

Artificial intelligence is reshaping the relationship between energy, water and digital infrastructure. According to the IEA, the world’s largest technology companies invested more than US$400 billion in 2025, with capital expenditure expected to rise by a further 75% in 2026, while global electricity demand from data centres grew by 17% in 2025. AI may be digital, but its infrastructure is not: data centres now consume electricity on a scale comparable to entire countries and place growing demands on water for cooling and on critical minerals. Balancing this demand while delivering long-term value for host communities - through firm low-carbon power, water stewardship and local economic benefit - is becoming central to infrastructure planning. Governments, utilities and technology leaders must accelerate investment, strengthen transparency and foster cross-sector collaboration to deliver the secure power and water systems the AI economy depends on.

Record investment programmes are colliding with rising costs for households and industry, making affordability and social licence as decisive as engineering and finance. As utilities plan historic levels of capital spending, the central questions become who pays, and how costs are allocated - particularly between large new loads such as data centres and existing consumers. In liberalised markets, rising bills have become a frontline political issue; in fast-growing and emerging economies, cost-competitiveness, tariff structure and subsidy reform shape industrial competitiveness and the flow of investment. Sustaining public and political support for the buildout will depend on transparent cost allocation, fair and forward-looking tariff and rate design, targeted support for vulnerable customers, and a utility business model that rewards outcomes and efficiency alongside investment. This theme addresses how the sector delivers the transition at pace while keeping power and water affordable and retaining the trust of customers and governments.

Delivering the transition at scale will depend as much on capital and collaboration as on technology. As financing costs and geopolitical uncertainty reshape investment decisions, capital is increasingly flowing towards stable markets, mature technologies and bankable projects, while emerging markets continue to face significant barriers in attracting the investment they need. Global energy investment reached a record US$3.3 trillion in 2025, yet the volumes required - well over a trillion dollars a year in power systems alone through 2030 - far exceed traditional funding channels. Unlocking large-scale deployment will require stronger public–private partnerships, innovative and blended financing models, multilateral collaboration, and clear policy frameworks that reduce investment risk. Bringing together governments, utilities, investors and technology providers will be essential to mobilising capital, accelerating delivery and translating ambition into resilient, investable systems with accelerated time-to-delivery.

Policy and regulation are becoming decisive factors in shaping competitive, resilient and investable energy systems. As countries balance security, affordability and decarbonisation, clear, stable and forward-looking frameworks are essential to unlocking investment and accelerating delivery; policy uncertainty and fragmented market design remain among the leading barriers to investment, particularly in emerging markets. Effective market design, streamlined permitting, faster interconnection, coordinated infrastructure planning and long-term signals for grid, firm and renewable capacity will be critical to scaling supply and enabling flexibility. Governments must also align industrial, trade and energy policy to strengthen domestic capability and secure supply chains while supporting global collaboration - ensuring systems remain competitive and resilient in a rapidly evolving geopolitical landscape and reducing the regulatory bottlenecks that slow implementation.

Delivering the transition at scale will depend not only on technology and capital, but on a skilled, adaptable and future-ready workforce. The rapid expansion of renewables, firm generation, grid infrastructure, digital systems and water technologies is creating significant demand for new capabilities across engineering, digitalisation and system operations. The International Renewable Energy Agency (IRENA) estimates that the global energy workforce could exceed 40 million by 2050, with a substantial share requiring new or upgraded skills. Utilities, governments and industry must work together to build inclusive talent pipelines, strengthen technical and vocational training, and attract the next generation of professionals. Developing human capital will be critical to accelerating deployment, improving system performance and ensuring a just and equitable transition.