Active Energy Group (AIM:AEG) provided shareholders with additional context on its UAE strategy ahead of Thursday's annual general meeting.
The Reach announcement, which the company said carries no material impact on management's performance expectations, follows shareholder enquiries about the rationale behind its growing focus on the region.
Active Energy said the UAE has become a leading global destination for investment in artificial intelligence, digital infrastructure and high-performance computing, backed by government policy and sovereign investment.
The company argued that AI expansion is increasingly an infrastructure challenge rather than purely a computing one, with electricity and water availability emerging as key constraints on data centre growth.
It pointed to the UAE's decades-long investment in desalination and water infrastructure as a strategic advantage, alongside recent regional geopolitical developments that have sharpened focus on supply chain resilience and self-sufficiency.
Active Energy said its initial UAE objective was to develop power-backed digital infrastructure for AI and high-performance computing, but it now sees scope to extend into water infrastructure and resource management.
"Whilst our immediate focus remains the development of power-backed AI infrastructure, we believe the convergence of energy, water and digital infrastructure will become one of the defining investment themes of the coming decade", said chief executive Paul Elliott.
The company said it continues to evaluate a growing pipeline of opportunities across the UAE, with further updates to follow as projects progress.
News Intelligence what this means for the company
Active Energy Group has published a strategic rationale for its UAE expansion ahead of Thursday's AGM, framing power-backed digital infrastructure for AI and high-performance computing as aligned with the region's water and energy security priorities. The company argues that AI infrastructure growth is increasingly constrained by electricity and water availability, positioning the UAE's decades of desalination investment and recent geopolitical focus on supply chain resilience as strategic advantages. This announcement carries no material impact on management's performance expectations and appears designed to address shareholder questions rather than signal a material change in direction.
The statement clarifies strategic intent but does not alter near-term earnings guidance. Active Energy's pivot from its core biomass business toward power-backed digital infrastructure in the UAE remains nascent—the company notes it is 'evaluating a growing pipeline' with 'further updates to follow'—leaving visibility on capital deployment, returns, and timeline limited until concrete project announcements materialize.
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