The grid’s greatest test is still to come: future-proofing GCC energy systems
Oct 19, 2025
Artificial intelligence (AI) is reshaping the energy sector twice over: radically transforming how systems are planned and run, while simultaneously being one of the fastest-growing sources of electricity demand. In the Gulf, where population growth, industrial expansion, AI adoption, and renewable integration converge, grids must become stronger and smarter. Data centre capacity is projected to triple between 2025 and 2030, adding new power needs and requiring grid upgrades even as governments pursue reduced emissions. Today, every step forward in AI depends on an even bigger step forward in energy efficiency.
Why the Gulf feels this first
As the Gulf enters a high-demand decade, the grid faces its greatest test. National plans such as Qatar National Vision 2030, Saudi Vision 2030, Bahrain 2030, UAE Vision 2031, Kuwait Vision 2035 and Oman Vision 2040 point to rapid digital and industrial growth. The Middle East data centre market is set to expand sharply by 2030, with cooling demand possibly tripling. The region’s upcoming developments such as Abu Dhabi’s Sphere venue, Dubai’s Al Maktoum International Airport, Qatar’s “Land of Legends” district, and Saudi Arabia’s New Murabba and NEOM megacities with a multi-billion-dollar AI factory campus carry direct and indirect implications for electricity demand, grid adequacy, and clean energy supply.
Iberdrola is meeting rising digital demand with clean energy partnerships worldwide. In the Gulf, Iberdrola Innovation Middle East tackles digital utility challenges across networks, renewables, and large energy users. Since 2018, its workforce has grown sixfold, advancing smart grids, renewable integration, and customer solutions. A 2022 agreement with Invest Qatar strengthened this role, focusing on AI tools to reinforce grids, optimise networks, and boost efficiency. Solutions developed in Doha now feed directly into Iberdrola projects worldwide.
Where East-West digital focuses and why
Building on this momentum, we launched East-West Digital in May 2025, to turn our innovation into products that energy companies, operators, and large users can adopt quickly. Our work is centered on four product areas:
- Asset optimisation and maintenance. We build predictive tools that help extend the lifetime of energy infrastructure and reduce downtime.
- Grid planning and stability. We build tools to support network planning and regulatory needs, helping grid operators integrate more renewable energy by leveraging generative AI.
- Flexibility and distributed energy integration. We offer platforms for battery optimization and , to realize the flexibility potential of buildings, EV fleets and other critical loads.
- Smart buildings and sustainability management. We create tools that optimise energy use, cost, and comfort at the building level. Our goal is to expand our impact by addressing the critical Water-Energy-Food nexus, an issue of strategic importance for the GCC region.
Together, these form the backbone of future energy systems. Iberdrola, Iberdrola Innovation Middle East, and East-West Digital are investing with this in mind: smarter grids, not just more supply, will define the Gulf’s energy future.
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