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Global power is no longer defined only by oil, trade routes, or military reach. A quieter shift is underway—one driven by pools of capital that sit between governments and markets. Sovereign wealth funds, once built to manage excess oil revenue, are thinking like long-range architects of the global economy.
At the center of this shift is a simple yet far-reaching idea: the fate of artificial intelligence and the future of energy are converging into a single infrastructure story, which is reshaping how countries think about economic expansion. The same systems required to support AI—data centers, high-voltage grids, advanced semiconductors, and uninterrupted electricity—are also the systems required to decarbonize economies and strengthen energy security. Two policy debates that once ran in separate lanes are merging into a single investment challenge.
For Abu Dhabi’s Mubadala Investment Company, that convergence is not theoretical. It is the strategy.
At the center of that approach is Khaldoon Khalifa Al Mubarak, the fund’s long-serving chief executive, who has overseen Mubadala since its formation in 2002. In our conversation, Al Mubarak framed the fund’s mission in terms that go beyond traditional portfolio management. In his view, sovereign wealth funds are no longer just stewards of surplus capital. They are becoming builders of systems—platforms that will determine how modern economies function over decades, not quarters.
Sovereign wealth funds were originally designed to do something relatively simple: take revenue from natural resources and invest it globally to preserve value for future generations. For decades, that meant stakes in real estate, infrastructure, public equities, and private equity funds.
But the world these funds now operate in is fundamentally different.
Energy systems are being rebuilt while digital systems expand at an extraordinary pace. Electricity demand is rising not just from population growth and industrialization, but also from AI-driven computing. At the same time, renewable energy has become cheaper and faster to deploy than most new fossil fuel infrastructure in many markets.
Capital is seeking more than returns. It now pursues the hardest constraints in the system, where demand is outpacing supply. Whoever controls those constraints—chips, electricity, grid capacity, and digital infrastructure—will have disproportionate influence over global growth.
That is where sovereign wealth funds are increasingly moving.
From Barrels To Bandwidth
Signage of an AI data center is displayed during the MWC (Mobile World Congress), the world’s biggest mobile fair, in Barcelona on March 3, 2025. Surrounded by investment and innovation projects, the Mobile World Congress (MWC) kicks off today in Barcelona amid a context of euphoria but also tensions over artificial intelligence (AI), whose rapid advancement is shaking up the tech sector. (Photo by Josep LAGO / AFP) (Photo by JOSEP LAGO/AFP via Getty Images)
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In the Gulf, this shift is especially visible. Countries that built wealth on hydrocarbons are now positioning themselves for a post-hydrocarbon world without abandoning the energy systems that created their advantage. Instead, they are layering new systems on top of old ones.
Mubadala has expanded far beyond traditional energy investments into semiconductor supply chains, advanced manufacturing, aerospace, life sciences, and digital infrastructure. Ditto for Saudi Arabia’s Public Investment Fund and the Kuwait Investment Authority. These funds are not making isolated bets. They are investing in the very foundations that make both artificial intelligence and modern industrial economies possible—benefits that flow globally.
The logic is straightforward: AI cannot scale without abundant electricity. Energy systems cannot modernize without digital tools that improve efficiency. And both depend on long-term capital that can invest across decades rather than business cycles. Private markets can fund pieces of this transformation. Sovereign wealth funds can fund the system itself.
The rise of AI is often described as a software revolution. But beneath the software layer is something far more physical. Training advanced AI systems requires vast amounts of specialized computing power running continuously—and in many regions, the limiting factor is no longer chips. It is power infrastructure.
This is where energy transition and AI expansion begin to merge.
Francesco La Camera, director-general of the International Renewable Energy Agency, argues that renewable energy can increasingly meet this demand at scale. In a recent conversation, he pointed to the rapid decline in costs for solar-plus-storage systems and the growing evidence that renewables are becoming central pillars of new power systems, not marginal additions. In many parts of the world, the question is no longer whether clean energy is viable—but whether anything else can be built fast enough.
Data centers do not respond to ideology. They respond to cost, reliability, and speed of delivery. Increasingly, the most competitive systems are hybrid—combining solar, wind, and storage rather than relying solely on traditional baseload fossil fuels.
The Geopolitical Layer
A display of networking infrastructure products at the Ericsson AB pavilion at MWC Barcelona 2026 in Barcelona, Spain. Photographer: Angel Garcia/Bloomberg
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Unlike most institutional investors, sovereign funds can align national energy policy, industrial strategy, and long-term capital deployment in a coordinated way. In Abu Dhabi’s case, that means connecting energy transition goals with AI ambitions and broader industrial diversification.
That integrated approach spans three overlapping domains: energy systems capable of meeting rising electricity demand; digital infrastructures that can process enormous volumes of data; and industrial ecosystems that connect raw materials, manufacturing, and logistics into globally competitive supply chains. Each reinforces the other. Cheaper clean energy lowers the cost of AI. Better AI improves energy efficiency. Industrial scale reduces the cost of both.
This is more than an economic transformation. It is a geopolitical sea change. Countries that can finance and deploy these systems at scale will not only attract investment—they will shape the conditions under which global growth occurs. The United States and China remain dominant in technology innovation. But the Gulf, through sovereign capital, is enabling infrastructure expansion in both the East and the West.
Still, the system is under strain. Global electricity demand is rising faster than many forecasts anticipated. La Camera has warned that the world is adding record levels of renewable capacity—hundreds of gigawatts annually—yet demand growth continues to outpace expectations. The result is not failure, but tension between what is being built and what is required.
For sovereign wealth funds, that gap is not a warning sign—it is a map. Where demand outpaces supply, infrastructure becomes more valuable. Where systems are strained, capital finds opportunity. And where energy systems and digital infrastructure intersect, long-term influence is possible.
Mubadala’s strategy reflects that logic. It is not betting on a single sector or technology. It is positioning itself across the full stack of modern economic expansion—from energy systems to industrial production to digital infrastructure.
The global economy has always been shaped by infrastructure: railroads, shipping lanes, oil pipelines, fiber-optic cables. What is different now is the speed at which infrastructure cycles are turning—and the scale of capital required to keep up. Sovereign wealth funds are uniquely positioned for this moment. They are large enough to matter, patient enough to wait, and strategic enough to shape outcomes rather than simply respond to them.
The next phase of global growth will not be defined by who builds the best models or extracts the most energy. It will be defined by who constructs the systems that allow both to scale together—and who had the capital, the patience, and the mandate to start building before anyone else.