The report below gives a good overview of the Summer 2025 M&A activity in the Energy Industry Sector. The global energy sector is undergoing rapid growth due to cost-competitive technologies and rising energy demand. According to the latest IEA's annual World Energy Investment report, the global energy investment is set to rise in 2025 to a record $3.3Tn despite headwinds from increased geopolitical tensions and economic uncertainty. Investments in clean technologies such as renewables, nuclear energy, grid storage, low-emission fuels, and electrification are set to hit a record of $2.2Tn, focusing on the reduction of carbon emissions and growing energy security concerns. China is the largest global energy investor with a one-third share in global clean energy investment, whereas India and Brazil are supported by strong governments with policy regulations. India is set to reach a target of 50% non-fossil generation capacity by 2030, and Brazil is to balance its bioenergy investment with its offshore oil development projects. Solar photovoltaic (PV) is leading the clean energy investments, which is expected to reach $450Bn in 2025, making it the largest energy investment segment. According to the Bloomberg New Energy Outlook 2025 report, renewable power generation is expected to increase by 84% over the next five years, supported by expanding electrification, transportation, and data centres. The increasing AI and data centres are driving up electricity demand. Data centres are becoming a significant new driver of electricity consumption, accounting for 4.5% of the total global power demand by 2035 and increasing to 8.7% by 2050. Companies that are heavily invested in technology are exploring geothermal energy partnerships and collaborations to lead in new industries.
Posted by Roy Graham.