Reflecting on 2025, the Gulf region’s transition from setting ambitious sustainability targets to achieving tangible milestones is nothing short of incredible. Throughout our work across the cluster this year, we’ve witnessed firsthand how governments, businesses, and innovators are collaborating to reshape our energy future.
This transformation is no longer theoretical – it’s happening in real time, and the Gulf is leading the way.
The intersection of electrification and digitalisation – which Schneider Electric calls Electricity 4.0 – is fundamentally changing how we design and operate urban infrastructure. This convergence creates extraordinary opportunities, particularly as data centre demand accelerates.
The numbers also tell a compelling story. Data centres currently account for approximately 1 per cent of global electricity use, but with AI workloads accelerating, usage could reach 3-4 per cent by 2030. Electricity demand for data centres alone is projected to grow fourfold beyond 2040. This requires an estimated $4tn in annual capital investment across data centres, power grids, and energy supplies. Through our EcoStruxure platform, we’re enabling the smart grids and automation systems that will meet this demand sustainably. These digital technologies optimise resource use in real time, reduce waste, and create more livable urban environments.
This year, we’ve supported landmark renewable energy projects across the Gulf, such as a first-of-its-kind urban sustainability venture in Oman that focuses on cutting down the carbon footprint of inhabitants by 78 per cent compared to conventional housing. At the same time, we recognise our responsibility in supporting the evolution of the existing energy sector.
Our work with major Gulf energy companies deploying AI-driven predictive maintenance and energy optimisation has demonstrated impressive results – reducing operational costs by up to 15 per cent while significantly improving energy efficiency. This proves that sustainability and operational excellence aren’t competing priorities; they’re complementary goals.
One of our proudest achievements this year has been launching Schneider Electric’s Global Innovation Hub in Dubai alongside The NEST, our new Dubai office, as part of our flagship Impact Buildings Program. Built around four core pillars – sustainability, people-centricity, efficiency, and resilience -The NEST embodies our Electricity 4.0 vision and serves as a living laboratory for next-generation building design.
The Innovation Hub operates as a collaborative ecosystem where Gulf businesses can access advisory services, digital tools, and expertise to advance their decarbonisation journeys. Aligned with the UAE’s Net Zero 2050 strategy, the hub is helping organisations translate climate pledges into measurable action. The response from the business community has exceeded our expectations, confirming that leaders across sectors are ready to act decisively on sustainability.
Despite the emphasis on technology as a great leveller, the fact remains that technology and infrastructure investments will only succeed if we develop the talent to design, operate, and innovate with these systems. We announced a Dhs100m education and upskilling initiative in early 2025, over five years, starting with the UAE, to develop next-generation talent.
We are equally passionate about inclusivity and fast-tracking women into prospective careers in science. Our Fem in STEM flagship programme is a structured mentorship initiative that pairs female university students in STEM fields with Schneider Electric’s leaders for around six months across MEA, focusing on skills development, industry exposure, and career guidance.
Looking to 2026 and beyond, we’re building momentum across several strategic priorities. We’ll accelerate deployment of AI-powered energy management systems while strengthening cybersecurity for critical infrastructure.
