The 3-gigawatt electricity interconnection project between Egypt and Saudi Arabia, currently undergoing testing, is set to play a pivotal role in advancing power-grid integration across the Middle East, North Africa, and Europe, according to Siemens.
The project comes as countries across the region accelerate efforts to modernize energy infrastructure, support economic diversification, and advance their clean-energy ambitions.
Siemens highlighted the growing importance of electricity networks in its latest Infrastructure Transition Monitor report, titled “Enabling Transformation: How a New Generation of Infrastructure Assets is Reshaping the Middle East.” The study surveyed 400 executives and included interviews with infrastructure leaders and experts from the UAE, Saudi Arabia, Egypt, Qatar, and Oman.
According to the report, modern power grids must focus on three key priorities: expanding capacity, improving flexibility while maintaining reliability, and strengthening cross-border cooperation through regional power trading and interconnection projects.
Grid constraints remain one of the most significant barriers to clean-energy adoption. Around 62 percent of Middle Eastern respondents said electrification efforts are being hindered by inadequate grid infrastructure.
Siemens noted that power networks are increasingly becoming a cornerstone of industrial development, energy security, and decarbonization across the region. Rising demand from electric vehicles, data centres, industrial electrification, and broader economic growth is expected to require substantial long-term investment and new approaches to power-system operations.
The Egypt-Saudi interconnection project, which includes approximately 1,350 kilometres of overhead transmission lines and submarine cables crossing the Red Sea, is expected to improve energy efficiency in Egypt and provide practical support in addressing the country’s ongoing power challenges.
Egypt has intensified efforts to secure electricity supplies amid rising demand and regional uncertainties. The country is preparing for a projected six to seven percent increase in power consumption during the summer months while targeting a 45 percent share of renewable energy in its electricity mix by 2028 under its National Climate Strategy 2050.
Looking ahead, Siemens said the region’s energy future will depend on developing a more digital, flexible, and interconnected electricity system capable of supporting clean-energy goals, industrial expansion, and the rapidly growing digital economy.
The report found that 70 percent of Middle Eastern executives believe greater data sharing between energy producers and consumers would improve energy-system efficiency, compared with 57 percent globally.
A similar proportion said their organisations plan to generate value from demand-side flexibility mechanisms, which encourage consumers to adjust electricity consumption based on grid requirements, market signals, or financial incentives rather than relying solely on increased power generation.
Regional business leaders also identified digitalisation, artificial intelligence (AI), smart buildings, flexible energy systems, and modernised grids as key drivers of infrastructure transformation.
Smart Infrastructure Driving Growth
As smart cities continue to expand across the Middle East, data centres are emerging as critical components of the region’s digital economy. At the same time, governments and industries are investing in lower-carbon technologies to meet sustainability goals.
However, infrastructure operators face growing challenges, including extreme temperatures, water scarcity, rising electricity demand, and geopolitical risks. These pressures are prompting organisations to rethink how critical infrastructure is designed, managed, and protected.
“The infrastructure transition is the transformation of the structures and systems that keep our world functioning, particularly across energy, industry, and the built environment,” said Hakan Ozdemir, CEO of Smart Infrastructure at Siemens Middle East.
The report also highlighted increasing interest in smart-building technologies, with respondents citing benefits such as strong returns on investment, enhanced operational efficiency, lower energy costs, improved transparency, and stronger safety and security measures.
Data centres are expected to play an increasingly important role in supporting decarbonisation efforts. Respondents identified AI-driven analytics, predictive technologies, and autonomous systems as the innovations most likely to accelerate carbon-reduction efforts over the next three years.
Nearly 62 percent of executives surveyed believe AI will fundamentally transform their organisations, while 69 percent said smarter technologies are essential for enabling rapid data integration, compared with 64 percent globally.
In Egypt, investments in digital infrastructure continue to accelerate. The country is expanding its network of data centres as part of a broader strategy to support digital transformation, enhance cloud-computing capabilities, strengthen government and private-sector operations, and attract an estimated $42.7 billion in AI-related investments.
