The AI Alliance Rewiring Abu Dhabi’s Power Sector

ADNOC, Masdar, and Microsoft team up to embed AI across energy systems, driving smarter, cleaner, and more connected global operations

3 Nov 2025

Abu Dhabi has formed a three-way partnership between ADNOC, Masdar and Microsoft to expand the use of artificial intelligence across the emirate’s oil, gas and clean-energy operations. Announced on November 2 2025, the agreement is intended to raise operational efficiency and support longer-term digital plans across the energy sector.

The partners said the move would apply AI tools to drilling data, equipment monitoring and workflow management at ADNOC. The state-owned group expects these systems to allow more predictive maintenance and faster decision-making. Financial details of the arrangement were not disclosed.

Masdar and XRG PJSC, ADNOC’s international investment arm, will provide renewable power to support Microsoft’s global data centre network. The companies described the structure as a reciprocal model in which clean energy supplies the computing capacity needed for industrial AI, while AI improves the performance of energy assets.

“This collaboration is about transformation, not just technology,” said ADNOC chief executive Sultan Ahmed Al Jaber. “AI will amplify human expertise, making our operations smarter, safer, and more sustainable.” Microsoft executives said the work would focus on the responsible use of AI in heavy industry.

Analysts said the agreement could strengthen Abu Dhabi’s position as regional demand grows for digital systems in the energy sector. Neighbouring producers, including Saudi Arabia, Qatar and Kuwait, have expanded their own investment in automation and data tools in recent years.

The partners acknowledged that large-scale integration and cybersecurity remain key challenges, particularly as energy groups connect industrial equipment to cloud infrastructure. Officials said further details on deployment timelines would be released next year.

The initiative reflects Abu Dhabi’s broader effort to combine data, AI and low-carbon power in its energy strategy. The companies said the partnership would support both near-term efficiency goals and longer-term plans to increase the role of clean energy in regional supply.