Global Investment Outlook 2026: Shifting Currents - Positioning for a New Monetary Era | First Abu Dhabi Bank

Global energy demand rose by 2% y/y in 2024 to hit a fresh record high and driven primarily by rising electricity needs. In fact, all regions of the world reported a sharp growth in electricity demand, with the Middle East and Asia Pacific registering the strongest increase in electricity generation at 5.30% and 5.40%, respectively that year.

Meanwhile, Goldmans Sachs expects global power demand from data centres to rise by 50% to 84GW by 2027 and by as much as 165% by end of this decade.

Fossil fuels still met more than 85% of overall energy consumption in 2024, with oil, coal, and natural gas remaining the largest sources of energy supply and meeting close to 60% of electricity demand, according to the 74th annual Statistical Review of World Energy.

On the green energy front, wind and solar power generation grew by 16%, however, China alone accounted for almost 60% of global renewable supply additions in 2024, and so even when hydro, nuclear and other clean energy sources are included, it is still far from being enough to meet ever rising energy demand in the short and medium term and to ensure a balanced transition.