Global energy sector faces major infrastructure shortfall, ADNOC CEO says

Dr. Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC) and UAE Minister of Industry and Advanced Technology, has highlighted massive infrastructure challenges posed by surging global electricity demand, particularly from AI-driven data centers. 

He made his statement during the opening of ADIPEC 2025 — the world’s largest energy exhibition — which was held in Abu Dhabi on November 3, 2025.

Demand is expected to increase over the years 

During his speech, Al Jaber stated that the global energy industry will require an annual injection of $4 trillion as more data centers and artificial intelligence increase in demand. 

“Here are the facts,” he said. “Electricity demand will continue to surge through 2040, with power for data centers increasing fourfold, 1.5 billion people migrating to cities, and more than 2 billion air conditioners being activated. Aviation will also expand, with the global airline fleet doubling from 25,000 to 50,000 aircraft.”

As a result of this, Al Jaber claims renewables will more than double by 2040, with LNG increasing by 50% and jet fuel by more than 30%, while oil will stay above 100 million barrels per day beyond 2040, as it is increasingly utilized not just for mobility, but also for materials.

To that end, oil-producing countries like the UAE have been boosting output capacity, ignoring warnings from analysts who have warned it could trigger a glut in crude supply that will affect prices even more next year. 

“Near-term uncertainty is real, while long-term demand remains strong,” Al Jaber said. “Our response to meet that demand should focus on data, not the drama.”

Al Jaber’s assessment is based on the fact that gas accounts for more than a quarter of the baseload power needed by data centers, and a shortage of gas turbines is turning a supply crunch into a choke point that is pushing electricity prices higher. 

“Infrastructure is still significantly lagging behind where it needs to be. We need at least six million kilometers of new transmission lines by 2050,” Al Jaber said.  “We require substantial capital investment. The fact remains that capital is available. We need the right structures in place to mitigate risk and ensure it flows to the appropriate areas.”

He also laid emphasis on the importance of freeing up dormant capital tied up in existing energy infrastructure assets. “Most crucially, policy must facilitate progress, not hinder growth,” he stated. 

The UAE’s pragmatic approach has benefited ADNOC

During his speech at the keynote address during the opening ceremony of the 41st edition of ADIPEC, and in the presence of His Highness Sheikh Mansour bin Zayed Al Nahyan, Dr. Al Jaber also elaborated on how the UAE is solidifying its status as an attractive destination for investment and the role ADNOC is playing in strengthening long-term partnerships.

“When efficiency matters, this is where the lowest cost and lowest carbon barrels reside. When capital seeks certainty, here is where you will find the best value for your investment. When good governance and the rule of law are imperative, here is where partnerships are solid and ROI is assured,” he said.

He highlighted and praised the UAE’s pragmatic approach to the current issues, calling it a case study in how policies grounded in realism can foster investor confidence. Al Jaber urged energy industry leaders, policymakers, and investors to take a page from the UAE’s book by standing for pragmatic policies and not shying away from bold partnerships that will ultimately promote job creation, socioeconomic growth, and enhance global competitiveness.

“Here in the UAE, our approach optimizes energy, attracts capital, advances technology, and collaborates with industry on practical policy solutions. Global capital continues to flow into the UAE because investors value credibility, appreciate predictability, and place a premium on trust. All are found in Abu Dhabi and across the UAE,” he said. 

Al Jaber pointed to ADNOC’s accomplishments as evidence of how successful the UAE’s pragmatic approach, which utilizes technology to make progress, is. He then revealed that the company has also been making progress globally through its international investment arm, XRG. 

Through that arm, the company has secured gas agreements in Mozambique, Egypt, Turkmenistan, Azerbaijan, and even the United States, but it has no plans to stop seeking opportunities across the gas value chain.

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