Energy security and AI are accelerating the renewable energy transition

Energy security concerns and artificial intelligence are strengthening investor conviction that the renewable energy transition will continue despite political resistance to net zero.

• The sixth annual Robeco survey covers 300 investors across Europe, Asia-Pacific and North America, and finds that 75% globally expect the Middle East conflict to moderately or significantly accelerate the transition.
• Regional conviction is strongest in APAC at 83%, followed by Europe at 78% and North America at 66%, partly reflecting differing exposure to Gulf oil and gas imports.
• AI is viewed positively by 57% of respondents for accelerating renewable energy and by 63% for developing sustainable infrastructure; the International Energy Agency estimates that AI-based management could unlock up to 175 GW of transmission capacity without building new lines.
• Investors also recognize AI's costs: data centres account for 1.5% of global electricity demand and 0.5% of CO2 emissions, while only 47% expect AI to reduce water consumption and 24% expect a negative effect.
• Despite political and populist opposition to net zero, 71% globally believe renewable adoption will continue, and 63% expect opposition to net zero to decline as climate risks become more material.

Takeaway: Investors see domestic renewable generation, storage, electricity networks, electrification and related equipment and services as beneficiaries of both energy-security concerns and AI, although AI's higher electricity and water demand creates an important near-term constraint.