Energy demand is continuing to rise across the Middle East despite the disruption caused by the Iran conflict, according to Javier Cavada, the European, Middle East and Africa chief executive of Mitsubishi Power.
Speaking to The National, Mr Cavada said the war, which began on February 28, had not dampened activity. “It is quite the opposite. I would say things have accelerated,” he said, adding that the company had recorded more demand, more contract signings and more nego...
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tiated bookings since the conflict started.
Mitsubishi Power, a wholly owned subsidiary of Mitsubishi Heavy Industries, has built a sizeable footprint across the Gulf as governments in the region push to expand generation capacity, modernise grids and cut emissions. The company operates in more than 30 countries and has long-standing ties with Saudi Arabia, where it has been present for 60 years.
Its regional strategy has become more visible in recent months. In October, it opened a turbine assembly facility in Dammam, a move designed to support Saudi Arabia’s Vision 2030 industrial and decarbonisation goals and deepen local skills. In January, it won an order to supply M701JAC gas turbines for a power and desalination project in Qatar due to come online in 2028. It also runs a major services workshop in the UAE.
Mr Cavada said those investments reflect a broader shift in the region towards building more resilient energy systems. “What we are doing is increasing the investment in the region, in the local community and in the local capabilities we have in these countries,” he said.
A major part of that shift is artificial intelligence. Mr Cavada described AI as the “new kid on the block” and said the technology was creating a surge in demand for reliable electricity. McKinsey has estimated that global spending on data centres could exceed $7 trillion by 2030, while the hyperscalers leading the AI build-out are expected to commit more than $1 trillion to AI investment this year.
The Gulf states are racing to capture that momentum. The UAE has stepped up spending on AI and digital infrastructure, including the Stargate UAE project with G42 and Microsoft, while Saudi Arabia has also been expanding its data-centre base under Vision 2030. Qatar, too, is seeking to position itself within the same ecosystem.
At the same time, researchers at the United Nations warned in June that data centres could consume twice as much power and water by 2030, after reporting that they used 448 terawatt hours of electricity and 4.5 trillion litres of water globally in 2025. Similar concerns are emerging in the US, where opposition to new data centres is growing as communities question their impact on electricity supply, water use and local infrastructure.
Mr Cavada argued that the answer lies in a broader mix of technologies rather than reliance on any single source. He said the pressure created by AI and by more strained grids strengthens the case for combining gas, solar, wind, storage and nuclear power.
“That’s what we call energy security – not relying on one single source and on one single party or one single technology,” he said.
He added that the Gulf was making “unprecedented” investment in gas while continuing to develop cleaner and more flexible systems. For Mitsubishi Power, he said, the challenge is not only meeting rising demand but also ensuring supply chains, skills and infrastructure can keep pace.
“The opportunities have the shadow next to them, and the challenges have their brightness next to them as well,” he said. “So it’s not it’s not black and white. It’s pretty colourful today.”
Source: Noah Wire Services
