Energy and infrastructure in 2026: The race for resilience
Global energy and data markets are reaching a pivotal moment. Foreign investment is reshaping renewables, battery storage is becoming central to grid resilience, and AI is driving unprecedented demand for data infrastructure. In 2026, the race intensifies for solutions that balance speed, sustainability and certainty. The following trends will define the year ahead.
Investment Flows Defy Uncertainty
Despite geopolitical uncertainty, investment in renewables and clean energy remains strong. The UK continues to attract significant capital from the US, Singapore and others, particularly into data centres, Gate 2 projects and eHGV charging infrastructure.
At the same time, UK investors are expanding internationally. Partnerships like Octopus Energy’s alliance with Masdar illustrate the growing global influence of UK expertise. Singapore and Malaysia show major potential, supported by skilled labour, political stability and government co‑investment driving rapid growth in renewables, storage and data centres. The US is also set for another year of rapid clean‑energy development in 2026.
Grid Reform Resets Battery Storage Strategy
Grid connection reform is one of the biggest forces reshaping UK energy infrastructure. Many battery storage projects still await Gate 2 offers, driving a rethink of how early‑stage value is created. For those with approval, confidence and delivery speed are improving.
Record storage capacity is expected online in 2026–27, supported by new market models such as tolling agreements, floor‑price products and merchant structures. Ongoing supply chain pressure—especially for transformers and switchgear—is prompting strategic acquisitions as corporates secure their energy and data‑centre development routes.
Battery storage is also becoming essential for large‑scale demand, providing resilience, backup and grid stability beyond its role in supporting renewables. The key question is how much cost and complexity developers will absorb to gain faster, cheaper grid access.
Germany shows a similar pattern: strong growth despite rising costs, with tolling and floor‑price models becoming standard and another robust year expected for European storage.
Data Centres: Demand Surges, Power Constraints Bite
AI is transforming data centre demand, accelerating hyperscale expansion and dramatically increasing power consumption due to GPUheavy workloads. However, power scarcity is reshaping the market map. Traditional hubs—London, Frankfurt, Amsterdam—are reaching capacity, pushing developers toward secondary cities with stronger grid availability.
To mitigate power constraints, operators are investing in onsite generation, microgrids and renewable PPAs. Sustainability has become a nonnegotiable requirement: carbonneutral operations, wasteheat recovery and advanced cooling technologies are now essential for regulatory compliance and corporate reputation.
The Data Centre Power Crunch Sparks Innovation
Global data centre electricity use is projected to reach 1,050 TWh by 2026—a 165% increase from 2020. This is driving innovation in energy sourcing. Developers are diversifying into gas turbines, battery storage, hydrogen and even small modular reactors to secure resilient power portfolios. The market message is clear: flexibility is now missioncritical.
Grid Connections Become the New Currency
In 2026, value depends not just on project pipelines but on the ability to progress through grid access. New models are emerging to ease connection pressure, including shared grid capacity across data centres, eHGV charging and other high‑demand users.
Private‑wire networks and large‑scale batteries are being deployed to cut costs and speed up connections, following the lead of Pivot Power and EDF Renewables. Regulatory changes are also opening up local energy markets, allowing local generation and demand to be matched more efficiently. Partnerships with innovators such as Urbanchain are accelerating this shift.Shape
Generators Find Support Amid Market Shifts
Falling wholesale prices have temporarily favoured offtakers, but geopolitical instability is likely to cause fluctuations throughout the year. The acceleration of the Gate2toWholeQueue process should benefit welladvanced generation projects, with corporate PPA buyers still prioritising delivery certainty.
Demand continues to rise, and UK policy support for renewables remains strong. CfDs are expected to stay a preferred route to market, while interest in REGOlinked deals has grown again, offering generators multiple options to monetise both power and certificates.
