Geopolitical tensions and economic uncertainty are reshaping the energy investment landscape. Things are moving fast and there is a race between countries to establish a technological and manufacturing advantage. Global investment in renewable energy, nuclear, grids, storage, low-emission fuels, efficiency and electrification will have increased to $2.2 trillion by 2025, according to )).
From the rise of artificial intelligence to decarbonization, passing through the role of China and India, these are the trends that will set the tone in the energy sector scenario throughout this year. This is how I summed it up a few weeks ago, ((LINK:EXTERNAL” target=”_blank”>https://www.weforum.org/stories/authors/maciej-kolaczkowski/”>Manager of the Advanced Energy Solutions Industry division of the World Economic Forum.
1. Safety, cost and jobs
According to the World Economic Fund expert, energy security, affordability and industrial policy drive various options and investments in energy technology, particularly among energy-importing countries. Led by these factors, and despite a lower priority placed on decarbonization, investments in clean energy continue to grow rapidly globally.
China’s investments in renewable energy, energy storage and batteries, electric and nuclear vehicles, for example, are primarily aimed at reducing its dependence on oil and gas imports and exerting leadership in new technologies. Europe, for its part, made great efforts to reduce its dependence on Russian oil and gas by investing in renewable energy and efficiency. Similarly, in the US, new policies are being introduced to relocate supply chains to the country.
2. Decarbonization
The importance of energy security, costs and broader industrial policies have increased substantially; However, at the same time, decarbonization and emissions reduction remain top priorities for policymakers and businesses.
Business plans and objectives are often more practical now and deadlines are sometimes extended, but there remains a high level of commitment to decarbonisation, even among the energy industry today. The focus is also on how local pollution from energy production and use can be minimized through technology to secure a social license to operate. It’s about here and now, rather than 2050.
3. The domination of China
In the analyst’s opinion, China is the dominant force in next-generation energy technologies. It is by far the largest energy investor globally, spending almost as much as the EU and the United States combined, investing hundreds of billions of dollars in the manufacturing and deployment of renewable energy, energy storage, nuclear power and more.
China’s industrial and energy policies are often seen as very effective in boosting domestic demand and building manufacturing and supply chains. The country dominates clean energy technology supply chains, from wind turbines and solar panels to batteries and electrolyzers. This investment )) for the country’s economy and has contributed to establishing China as an important player in world politics, highlights Kolaczkowski.
4. India rises
India has set bold ambitions and demonstrated remarkable progress in its investment in energy transition. It has exceeded its goal to ((LINK:EXTERNAL” target=”_blank”>https://volta.foundation/download-the-2023-battery-report”> to achieve 40% of installed capacity from renewable energy sources nine years in advance.
To replicate this success and complement it with “made in India” goals, central and state governments have implemented numerous tools, including incentives for domestic manufacturing and mandates for clean energy deployment. These are helping the country emerge as a major player on the global stage when it comes to energy storage, clean hydrogen and solar panels.
Based on data from the Economic Fund, Indian business champions are pursuing these ambitions at speed and scale. He Dhirubhai Ambani Giga power complexfor example, scheduled to launch in 2026, will host a gigawatt-scale manufacturing ecosystem for solar panels (10 GW), battery storage (100 GWh), and electrolyzers for hydrogen (3 GW). It will be the largest complex of its kind in the world, with a built-up area equivalent to four times the size of the Tesla Gigafactory.
5. Hunger for AI
In fifth place, the Manager of the Advanced Energy Solutions Industry division of the World Economic Forum places the increase in electricity consumption in data centers, which, according to the International Energy Agency, will more than double to around 945 TWh by 2030, slightly exceeding Japan’s total electricity consumption today. AI is the most important driver of this growth.
However, grid connection queues are long and complex, as construction of new transmission lines can take four to eight years and with power grids already under pressure in many places, 20% of planned data center projects could be at risk of delays.
In fact, according to 2025 Data Center Energy Report At Bloom Energy, power availability has become the leading factor for data center site selection, even ahead of things like proximity to fiber optic networks.
Consequently, power availability is critical as almost a third of data centers are expected to run entirely on on-site power by 2030, bypassing the entire existing grid. Interestingly, reducing carbon emissions is a lower but enduring priority: 95% of respondents to the report said sustainability and carbon reduction goals remain in place.