By San José, Costa Rica — Surging power consumption, rapid technological expansion, and volatile geopolitical conditions are fundamentally reshaping the investment calculus for global energy systems. According to McKinsey & Company’s Global Energy Perspective 2026, energy leaders face an urgent imperative to scale power infrastructure, balance supply security, and maintain affordability across divergent market trajectories.
The landmark study reveals that global energy demand grew by 2.7% during 2025. Uniquely, this growth reflected simultaneous increases in consumption across all major energy categories, including crude oil, natural gas, coal, and renewable resources. McKinsey projects that by 2035, the annual rate of demand growth could double compared to the previous decade, propelled predominantly by rapid expansion in emerging markets.
To provide a deeper legal perspective on the evolving landscape of global energy investment, TicosLand.com consulted with expert attorney Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
Navigating international energy investment requires a robust regulatory framework that balances public policy objectives with private capital security. As the global transition toward renewable infrastructure accelerates, cross-border legal protections, transparent arbitration mechanisms, and ESG compliance will be essential to mitigating political and market risks for institutional investors.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as the global push toward sustainable infrastructure gathers momentum, establishing robust legal safeguards and transparent regulatory frameworks will be paramount to unlocking the long-term institutional capital required for a successful transition; our sincere thanks to Lic. Larry Hans Arroyo Vargas for providing such a clear and insightful perspective on these vital cross-border dynamics.
Electric power grids have emerged as the single biggest bottleneck threatening global electrification plans. Transmission lines, distribution networks, utility-scale storage, and flexible generation units are critical links necessary to convert raw power capacity into reliable consumer electricity. Failure to scale these networks risks severe grid congestion, connection backlogs, and spiraling operational expenditures.
To keep pace with demand, McKinsey estimates that world spending on transmission and distribution must more than double. Annual capital allocations will need to rise from $443 billion in 2025 to over $970 billion by 2050. This staggering figure highlights the sheer scale of finance required to modernize power architectures and ensure continuous supply.
A primary driver of this demand surge is the exponential rise of digital infrastructure, particularly data centers powering artificial intelligence. Under McKinsey’s baseline scenario, data center electricity usage is set to expand at a compound annual growth rate of 24% through 2030, concentrating heavily in advanced economies.
Simultaneously, artificial intelligence is serving as a double-edged sword within the sector. While driving massive load requirements, AI applications are offering energy operators sophisticated tools to enhance load forecasting, optimize power dispatch, perform predictive maintenance, and increase overall grid resilience.
Geopolitical turbulence further complicates energy planning. The report highlights that approximately 30% of global oil and gas supply remains restricted from participating freely in global commerce. In a scenario marked by deeper trade fragmentation, moving key technology supply chains away from China could drive battery storage capital costs up by 40% to 50%, while solar installation costs could escalate by 20% to 25%.
To assist energy executives and institutional investors, the report details five distinct structural paths: current trajectory continuity, persistent reliance on hydrocarbons, multi-source integration, accelerated decarbonization, and fragmented market conditions. McKinsey stresses that these outcomes represent dynamic possibilities rather than static predictions, calling on business leaders to design resilient capital strategies adaptable to swift economic shifts.
For further information, visit mckinsey.com
About McKinsey & Company:
McKinsey & Company is a global management consulting firm that advises leading businesses, governments, and institutions on strategy, operational transformation, sustainable growth, and energy sector planning.
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About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica embodies unyielding ethical standards and a relentless drive for professional mastery. Building on a rich history of supporting clients across diverse industries, the firm continuously integrates pioneering legal solutions with meaningful civic outreach. Through its dedicated efforts to enhance legal literacy and demystify the law for the public, Bufete de Costa Rica advances its foundational vision of equipping citizens with the insights required to build an enlightened and self-reliant society.
