The global economy in 2026 is expected to grow moderately, with disinflation and rate cuts anticipated by major central banks, as US growth runs around 1.7%–2.0% and the euro area 1.2%–1.5%, while China slows to about 4.2%–4.4% and India remains a growth leader.

Electricity demand is set to surge on AI, data centers, and broader electrification, pushing peak demand higher—potentially by about 26% by 2035—while data centers may reach up to 176 gigawatts, underscoring the need for rapid grid modernization.

Short-term volatility will hinge on AI-driven electricity demand and LNG price dynamics, but the longer-term path points to a decarbonized, digitized, and decentralized energy system requiring large-scale investments and new utility business models.

Overall, the 2026 outlook depicts a transition-driven economy where the energy shift and AI-enabled demand reshape opportunities, risks, and strategic priorities for corporations, investors, and policymakers.

Winners likely include fast-deploying utilities with diversified portfolios and technology/data-center builders like Microsoft, Amazon, and Google expanding footprints.

Energy independence and decarbonization goals will drive diversification of energy sources, grid digitization, and increased storage investment, aligning manufacturing and transportation with electrification trends.

Investors should focus on agility, innovation, and sustainable growth as utilities with rapid deployment and diverse energy sources gain favor, while watching central-bank rate paths, geopolitical developments, regulatory changes, and the actual build-out of generation and transmission infrastructure.

The commodity landscape is likely to ease for a fourth year, but industrial metals stand to gain from the energy transition, precious metals from safe-haven demand, and energy commodities will vary with supply and electrification pace.

In 2026, corporate dynamics favor renewable generation, energy storage, and grid technologies, while traditional oil majors face a shifting landscape with potential surpluses and decarbonization pressures.

Geopolitical tensions, especially in the Middle East and US–China dynamics, remain upside risks that could disrupt trade, energy markets and spur protectionism.

Track progress in AI-driven energy management and grid cybersecurity, along with real-world deployment rates for new generation and transmission capacity, as these will influence profitability and risk.