Global renewable energy infrastructure investment rose 49%YoY to about $496.7 billion in 2025, led by solar PV, according to a new Ansarada and Infralogic report
AI-driven electricity demand is emerging as a major catalyst for new renewable projects
The Middle East is gaining momentum as a renewable investment hub, with spending rising from $10.1 billion in 2024 to $12.9 billion in 2025
Demand here is supported by sovereign-backed project development and growing AI infrastructure
Global investment in renewable energy infrastructure rose 49% year-on-year (YoY) to about $496.7 billion in 2025, driven largely by rising electricity demand from artificial intelligence (AI) computing, according to a new report by Ansarada. Among renewables, solar PV leads with a clear majority, having witnessed 1,137 transactions worth $151.1 billion.
Solar-plus-storage is another growing subsector gaining traction, with the number of deals in 2024 and 2025 reaching 165 and 211, while battery storage deals expanded from 271 to 459 over the same period, respectively.
Produced by software-as-a-service (SaaS) platform Ansarada in partnership with Infralogic, the report surveyed 150 senior executives across APAC, EMEA, and the Americas. Of these, 37% of respondents globally identified AI-driven energy demand as the primary driver for new renewable projects, with a similar share (36%) reported in the EMEA region.
Nearly 77% of respondents see solar PV drawing some of the largest capital investments worldwide.
With more than $500 billion in AI infrastructure capital expenditure expected in 2026, energy demand from AI computing is becoming a major catalyst for new renewable energy development, according to the respondents. In the US alone, data center electricity consumption is forecast to reach 409 TWh by 2030.
A major activity center last year was the Middle East, according to the analysts, where renewable energy investment increased significantly during the year – from $10.1 billion in 2024 to $12.9 billion in 2025. Especially, the UAE is rising as an AI hub, which will need strong energy infrastructure to support energy-hungry data centers. It will then automatically become a major driver for new renewable energy projects going forward.
Around 25% of surveyed executives view the Middle East as a top growth market for renewable energy investment. Respondents point out that the region’s sovereign-backed development model is helping accelerate project pipelines and supply chain mobilization, allowing it to avoid some of the grid congestion and permitting delays affecting renewable deployment in Europe and North America.
“The Middle East demonstrates what's possible when projects are designed and delivered holistically,” said Justin Smith, Managing Director at Ansarada. “Building renewables and transmission together represents a fundamentally different approach than the fragmented delivery model common in Western markets.”
Nevertheless, Europe was found to be the largest market with $202.7 billion invested across 1,035 transactions – 82% and 4% YoY increase, respectively – thanks to recent policy developments. This includes the European Grids Package and advanced updates to the REPowerEU under the European Union’s (EU) attempts to shake off its reliance on Russian fossil fuels by 2027. With this, investments are being channeled towards wind, solar, and storage. Another high-value market last year was Asia, with investments totaling $68.6 billion (up 17%).
The 2026 Renewable Energy Infrastructure Outlook Report also highlights the growing role of storage to support renewable energy generation. Procurement then becomes increasingly important as projects grow in size and complexity; however, there are challenges.
Smith added, “Only 37% of respondents globally described their most recent procurement process as "very efficient," dropping to 8% in EMEA and 29% among government agencies. While 95% believe their processes are transparent internally, 43% admit processes lack clarity for external parties, creating litigation risk.”
The report finds gaps in procurement systems despite the widespread use of digital tools. While 91% use procurement software, many rely on multiple disconnected systems, and 55% still use email for sensitive communication. Only 37% globally said their latest procurement process was very efficient, and 43% said external stakeholders lack clarity, which can increase legal risks.
The Middle East stands out, though, as procurement processes here have ESG deeply integrated, and projects without clear ESG data may struggle to secure tenders or financing.
The complete report is available on Ansarada’s website for free download.