Abu Dhabi — The bright lights of Abu Dhabi’s ENACT Majlis reflected off the mirrored façades of a city built on oil wealth — but this week, the conversation turned to algorithms. ADNOC, Masdar, XRG, and Microsoft have launched a new collaboration to fuse artificial intelligence with the infrastructure that powers it, in a move designed to drive efficiency across energy systems while supporting the clean power needs of the world’s growing AI networks.
Announced ahead of ADIPEC, the partnership builds on years of collaboration between ADNOC and Microsoft and expands it to include Masdar and XRG. Together, they will co-develop AI systems to reduce emissions across ADNOC’s operations and deliver renewable energy and infrastructure solutions to sustain Microsoft’s global AI and data center growth.
AI for energy, energy for AI
Under the agreement, ADNOC and Microsoft will co-develop and deploy AI agents across the entire value chain — from exploration to refining — to automate operations and cut emissions. At the same time, Masdar and XRG will design energy solutions to meet the soaring power demand from data centers that underpin AI technologies worldwide.
“AI continues to reshape how value is created and enhanced across industries,” said His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Executive Chairman of XRG and Chairman of Masdar. “ADNOC, Masdar and XRG are embedding AI into every layer of our operations — and advancing the energy systems that will power AI itself.”
ADNOC was the first energy company to deploy generative AI enterprise-wide in 2023, using Microsoft Copilot. More than 40,000 employees have now completed AI training, with utilization rates above 90 percent and productivity gains of over 70,000 hours per month.
Building the infrastructure of the digital economy
As Microsoft expands its global AI and data center footprint, the collaboration aims to deliver low-carbon energy at scale — a pressing need as data centers’ electricity demand is set to double by 2030. Masdar’s clean energy expertise and XRG’s industrial capabilities will anchor new renewable and grid solutions tailored for AI workloads.
“No single company or industry can meet this moment alone,” said Brad Smith, Vice Chair and President of Microsoft. “Accelerating the transition to a more sustainable, secure, and inclusive energy future requires deep collaboration between governments, energy providers, technology companies, and innovators everywhere.”
The partnership also builds on the 2025 Powering Possible Report from ADNOC and Microsoft, which compiled insights from over 850 global experts on how AI is transforming energy systems.
Policy implications for energy transition governance
For governments and regulators, the alliance underscores a new frontier: AI is not just a digital tool but a driver of energy policy. By pairing AI deployment with renewable expansion, the UAE is positioning itself as both a laboratory and a supplier for the global energy transition.
The model offers a preview of how industrial economies might integrate data infrastructure with clean power systems — transforming AI’s energy footprint from liability to leverage.
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