New research finds EMEA Renewable energy infrastructure investment surges, procurement pressures intensify globally
Investment in renewable energy projects in the Middle East has jumped by 28%, year-on-year, according to a new report from Ansarada, a leading M&A and infrastructure procurement platform.
Global renewable energy investment has reached US$496 billion, driven increasingly by rising AI compute demand, according to the 2026 Renewable Energy Infrastructure Outlook Report by Ansarada in partnership with Infralogic. The Middle East is gaining momentum as a key growth market, attracting US$12.9 billion in investments in 2025, up from US$10.1 billion the previous year, with 25% of global respondents identifying the region as a top destination for renewable energy expansion.
Unlike Western markets constrained by grid bottlenecks and permitting delays, the Middle East’s sovereign-backed, integrated delivery model enables faster project execution by building renewable generation and transmission infrastructure in parallel.
This approach is becoming increasingly critical as AI-led energy demand surges, with global AI infrastructure spending projected to exceed US$500 billion in 2026 and data centre consumption expected to reach 409 TWh by 2030.
Battery storage is also emerging as a core component of this transition, with 34% of EMEA respondents anticipating strong growth in large-scale storage. However, operational inefficiencies persist. Despite 91% adoption of procurement software, organisations rely on fragmented systems and manual processes, with only 37% reporting highly efficient procurement workflows. Transparency gaps and ESG compliance requirements further add to execution risks.
Justin Smith, Managing Director at Ansarada, shared insights with Tahawultech.com on how AI-driven energy demand is reshaping renewable priorities, infrastructure delivery models, and procurement strategies across the Middle East.
Interview Excerpts
How is AI-driven power demand reshaping renewable energy priorities across the Middle East?
Our recent research shows 37% of respondents globally, and 36% in EMEA, view surging energy demand as the critical driver for new renewable energy infrastructure development. With over US$500 billion in AI infrastructure capital expenditure projected for 2026 and US data centre energy consumption forecast to hit 409 TWh by 2030, this is influencing how energy infrastructure is prioritised. In the Middle East, this shift is reinforcing investment in renewable energy projects that can deliver long-term capacity while supporting economic diversification strategies. Investment in the region grew 28% year-on-year in 2025, reaching US$12.9 billion. We’re also seeing increased interest in integrated solutions, particularly solar combined with battery storage. Our report shows 34% of EMEA respondents expect strong growth in large-scale storage, which helps manage variability and improve grid stability as digital infrastructure expands.
How are rising energy needs from industry, logistics, and digital infrastructure influencing renewable project procurement?
Rising electricity demand is increasing both the scale and complexity of renewable energy projects. This is influencing how infrastructure procurement processes are structured, particularly where projects involve multiple stakeholders, technologies, and delivery partners. As projects become more complex, procurement is playing a much more strategic role in maintaining alignment and stakeholder confidence. Our research shows that only 37% of respondents globally described their most recent procurement process as “very efficient,” with this figure dropping to 24% in Asia-Pacific. Nearly half of respondents (45%) view ongoing progress monitoring and reporting as critical to procurement success, reflecting the need for visibility in complex, multi-stakeholder environments. There’s also increasing recognition that transparency matters.
While 90% of EMEA respondents describe transparency and auditability as “very important” or “essential” to procurement, 43% of organisations globally admit their processes lack clarity for external stakeholders.
Why has procurement become a critical factor in delivering renewable energy projects on time, on budget, and at scale?
Renewable energy projects now involve wide ecosystems of participants, including developers, investors, engineering firms, equipment suppliers and regulators. Coordinating these stakeholders effectively is essential to maintaining timelines and managing cost pressures. Our research highlights significant challenges. Only 37% of respondents globally described their procurement process as “very efficient.” More concerning, while 91% use purpose-built infrastructure procurement software, organisations deploy an average of 3 to 4 disconnected systems, and 55% still rely on email for sensitive bidder correspondence. In EMEA, organisations use an average of 3.8 different systems, the highest fragmentation globally. This fragmentation creates real risks. When processes span multiple platforms, version control breaks down and audit trails become incomplete. Nearly half of respondents (45%) identified ongoing progress monitoring and reporting as one of the top factors contributing to procurement success, while 39% highlighted risk allocation and management. Structured procurement approaches are becoming essential for supporting efficient delivery and maintaining stakeholder confidence.
How is the Middle East balancing energy resilience, supply certainty, and execution readiness as renewable investment accelerates?
The Middle East is taking a long-term approach supported by sovereign capital and integrated project design. Investment in renewable energy projects grew 28% year-on-year in 2025 to US$12.9 billion, with 25% of global respondents identifying the region as a top growth market. What distinguishes the Middle East is its integrated delivery model. Projects like Saudi Arabia’s US$8.4 billion NEOM Green Hydrogen Project, which reached 90% complete, demonstrate the ability to build generation and transmission in parallel rather than sequentially. This approach bypasses the grid connection delays and permitting friction that create bottlenecks in other markets.
Source: Tahawul Tech