Eye on SI: 2026 Outlook

Executive Summary

Sustainability Outlook: What’s on Our Radar for 2026

Three transformative trends are reshaping global investment landscapes and sustainability outcomes: rapid expansion of data center and artificial intelligence (AI) infrastructure, resurgence of natural gas as a key energy source, and intensifying competition for rare earth materials.

Data center and AI infrastructure growth

The explosive growth of AI, cloud computing, and digital infrastructure is driving a projected 74% increase in electricity demand from global data centers between 2024 and 2026 and another 70% rise by 2030 (relative to 2026 levels). This trend is reshaping energy markets, creating opportunities in utilities, grid expansion, and localized power generation. However, challenges such as energy price volatility, grid congestion, and permitting delays pose risks. By 2030, data centers are expected to consume 7–8% of global electricity (up from 2% in 2023), with investment in AI and data infrastructure projected to reach $6.7 trillion.

Natural gas resurgence

Following a steep decline, natural gas is making a strong comeback, driven by demand for AI, industrial recovery, and falling prices. Liquified natural gas (LNG) is emerging as a practical transition fuel, bridging the gap between renewable energy and growing power needs. Global LNG trade is expanding, with U.S. exports projected to rise 30% by 2027 and Europe increasing regasification capacity. Natural gas is essential to power a 745% increase in energy generation for data centers by 2030. Investment in LNG infrastructure and storage is also set to grow, providing stability and complementing renewable energy and nuclear power.

Race for rare earth materials

Essential for AI, digital infrastructure, and electrification, rare earth elements are in high demand, with global consumption projected to rise 35% from 2024 to 2030. China dominates the supply chain, controlling 70% of mining and 85% of refining capacity, adding to geopolitical tensions and supply risks. Western nations are investing in emerging markets and bilateral agreements to diversify supply chains and reduce dependency on China. Investment in critical mineral supply chains is expected to exceed $2 trillion by 2050, with mining alone requiring $800 billion in new capital.

Our analysis underscores the importance of sustainable investment strategies that align with decarbonization goals while addressing risks such as energy price volatility, supply chain constraints, and environmental challenges. By focusing on innovative companies leading data infrastructure, clean energy, and critical minerals, investors can capture opportunities in an AI-driven economy while supporting global sustainability objectives.

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