Gulf Oil Giants Finance India AI Energy Infrastructure Investment

At India Energy Week, the subtext is not just about oil—it is about the electricity required to power artificial intelligence at scale. India is positioning itself as the testbed where energy infrastructure meets AI expansion.

When Dr. Sultan Ahmed Al Jaber arrived in Goa for India Energy Week (27–30 January 2026 #indiaenergyweek), he brought more than the weight of the UAE’s hydrocarbon reserves. As ADNOC’s chief executive and a senior minister in the UAE system, his presence signals a shift that many Western boardrooms still underprice. The official conversation this week will be about oil, gas, and the transition. The subtext is about the only input that now competes with crude for strategic primacy: the electricity required to run artificial intelligence.

We are accustomed to thinking of AI as software—code that lives in the cloud. But the cloud is physical. It is steel, copper, water, and above all, power. And as advanced economies struggle with aging grids, slow permitting, and regulatory congestion, India is positioning itself as the scaling ground where the next wave of AI infrastructure gets built.

The Physics of Intelligence

The constraint on the AI revolution is no longer just chips; it is joules.

Data centres already account for roughly 1.5% of global electricity demand, —a figure the IEA puts at roughly 415 TWh in 2024— and the trajectory is steepening as AI workloads intensify. The IEA’s latest electricity outlook warns that demand from data centres (including dedicated AI data centres), AI and crypto could rise sharply through 2026, with low and high cases reflecting uncertainty about how fast deployment scales and how much efficiency improves. The point is not the precision of the curve. It is the direction of travel—and the fact that power, not code, is increasingly the bottleneck.

Al Jaber’s keynote made the same argument, but widened the frame. He described the defining story of energy as growth, driven by three megatrends: the rise of emerging markets (led by Asia and India), the exponential growth of AI and digital infrastructure, and the transformation of energy systems. The conclusion is straightforward: demand at this scale does not wait for political comfort. The biggest risk is not oversupply; it is underinvestment.

He also flagged a second electricity driver that rarely makes it into tech narratives: cooling. Data centres matter, but so does the quieter compounding load of air-conditioning as countries get richer and warmer. In other words, the grid is being squeezed from both ends—compute at the top, basic comfort at the base.

That context sharpens what India is doing. The country’s data-centre load is still modest by US or Chinese standards—about 1.4 GW of operational data-centre capacity today —but the pipeline is expanding rapidly and industry forecasts increasingly cluster in the high-single-digit gigawatts of data center capacity by the end of the decade. That is not a niche. That is an additional industrial sector, sized in power stations.

An ADNOC spokesperson told me India is central to the company’s commercial footprint: India is ADNOC’s number-one market for LNG, ADNOC is India’s largest supplier of LPG, and ADNOC was the fourth-largest supplier of crude to India in 2025. The relationship runs deeper than flows. Indian firms are partners in Abu Dhabi upstream and operate across ADNOC’s wider ecosystem as customers, suppliers, and contractors—down to industrial products like sulphur used for fertiliser.

This helps explain the design of the week in Goa. India Energy Week is structured around multiple thematic zones and a very large exhibition footprint—tens of thousands of attendees, hundreds of exhibitors, and a programme that deliberately puts “Digitalisation and AI” in the same building as system-level themes like nuclear and hydrogen. That adjacency is not branding. It is arithmetic. You do not get the former at scale without solving the latter.

India understands a brutal truth that Silicon Valley often glosses over: whoever shapes the energy architecture shapes the constraints—and therefore the outputs—of the AI economy.

The Gulf’s New Hedge

This brings us back to the Gulf. For sovereign wealth funds and national energy companies, the long-term play is not only selling molecules to India. It is financing the infrastructure that converts those molecules—and their low-carbon successors—into compute, stability, and strategic leverage.

The logic is capital-efficient. Gulf economies are actively investing in AI infrastructure both domestically and internationally, but their domestic markets do not offer continent-scale testbeds for deploying AI across grids, industries, and urban systems. India does. It has the scale, the growth rate, and a state capacity that is increasingly comfortable using energy as industrial policy.

That is why the week matters beyond the optics. When India’s petroleum minister, Hardeep Singh Puri, frames India Energy Week as a shift from discussion toward concrete collaboration, he is signalling an investment posture as much as a policy posture. If the meetings produce the expected stack of contracts and partnerships, the emerging pattern is straightforward: Gulf capital, Indian energy infrastructure, and global technology firms converging on the same physical constraint—reliable electrons.

Consider the operational layer. India has approved a roughly ₹3.03 lakh crore programme to modernise distribution networks under its Revamped Distribution Sector Scheme, improve reliability, and reduce losses—precisely the kind of plumbing that becomes decisive when you are trying to run high-uptime, high-density compute on a national grid. For a Gulf investor, grid modernisation is no longer a sleepy utility play. It is a strategic position on the growth curve of the global AI economy.

The Regulation Sandbox

There is a geopolitical dimension here that appeals to resource realists. Europe and the US are increasingly consumed by the politics of AI’s environmental footprint: power, water, land, and the legitimacy of devoting scarce capacity to servers. India’s approach is more pragmatic, and more developmental: build capacity, then fight over marginal allocation once the base load is secured.

That is where the conference’s technology signals matter. The prominence of nuclear—especially the renewed attention to small modular reactors—and the parallel push on sustainable aviation fuel are not just about green credentials. They are about density and resilience: energy systems that can scale without destabilising everything around them.

This is what makes India attractive as a proving ground. Not because it is “unregulated,” but because the state’s priority function is clear: expand supply, harden infrastructure, and move fast enough that the capacity exists before the constraint becomes politically unmanageable. In effect, it becomes a test environment where nuclear, renewables, storage, grid digitalisation, and compute can be integrated at speed—at a scale that most countries cannot replicate.

The Bottom Line

Watch the Memorandums of Understanding signed this week. The headline numbers will centre on crude and LNG—such as the planned term arrangement between India’s BPCL and Brazil’s Petrobras, part of a broader effort to diversify supply.

But the more strategic signal will sit in the less headline-friendly deals: grid management systems, storage, digital control layers, and infrastructure partnerships that make AI-grade reliability possible. Look for agreements that explicitly connect energy systems to digital infrastructure—because that is where the real compounding happens.

Nations that can reliably power the infrastructure underpinning advanced technologies will hold structural advantages in the 21st century. India has grasped that early. And judging by who is showing up in Goa—and what they are there to sign—so has the world’s energy elite.